Investor loan DSCR rate update as of mid-February 2023
For DSCR-type loans (i.e. based on the income of the property and not the income of the borrower), here’s what to expect right now with the following kind of loan profile:
- Single-family home
- Purchase up to 80% LTV and cash-out refinance up to 75% LTV
- DSCR above 1.20
- Personal credit above 720
You could expect a rate of 7.3-7.4% right now with credit above 720 on a purchase. Rate increases would be needed for 2+ unit buildings and lower personal credit. Rate decreases could be achieved for lower LTVs and higher DSCR ratios, as well as paying buy down points. Maximum buy down of ~3 points gives a 6.49% floor rate.
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