Investor loan DSCR rate update as of mid-October 2023
Interest rates have increased a lot over the last several months with the US Treasury 10-year note around 4.7% now (+1.2% from 6 months ago):
USD 10 Years Interest Rate Swap Bond Historical Data – Investing.com
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
At max leverage (80% on purchase or R/T refinance) you can expect a rate of 8.5-8.9% right now with credit above 720 on a purchase or rate/term refinance. Rate increases would be needed for cash-out refinances (max 75% LTV), 2+ unit buildings, and lower personal credit.
Rates decrease with better credit and for lower LTVs/loan amounts. We highly recommend taking 5-10% less than max leverage to save 0.4-0.8% on the rate.
Maximum buy down of ~3 points gives a ~7.5% floor rate.
Please send us a quote request and we will get you started with a fully transparent quote.