Latest DSCR Rental Purchase and Refinance Rates

Real estate investor loan DSCR rate update as of October 2025

Interest rates drifted down for most of the 2nd quarter of 2025 as driven by a reduction in the Fed funds rate.

Since the last update in June, the US Treasury 10-year note is now around 4.15% mark:
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 (can go down to 1.10 and perhaps 1.0 but a surcharge may apply)
    • Personal credit above 700 gets a decent rate, need at least 660 to qualify

At max leverage (80% on purchase or R/T refinance) you can expect a rate of 6.80-7.15% right now with credit above 740 on a purchase or rate/term refinance. Rate increases would be needed for cash-out refinances (max 75% LTV), 2+ unit buildings, a shorter pre-payment penalty period, and/or lower personal credit.

Rates decrease with better credit and for lower LTVs/loan amounts. You might want to take 5% less than max leverage to save 0.10-0.25% on the rate.

Maximum buy down of ~4 points gives a ~6.0% floor rate.

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on October 9, 2025

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