Best DSCR Loan rate for 780+ credit?

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Best DSCR Loan rate for 780+ credit?

Nick Cooper
Contractor · South Vienna, OH · Member since 2019 · 41 posts · 22 votes

I'm trying to close on 2 properties at once. They both equal $215k average rent is $1350 per unit. My DSCR Lender quoted me at 7.5% for 30 years with 20% down. Is there anyone who can beat that?

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
9mo

with 780 credit and a five-year pre-payment this seems high. We are writing similar loans in the 6's. 

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  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 652 posts · 314 votes
    9mo

    7.5% feels a bit high, but to confirm, you are just doing a straight purchase on two properties at once?

    Are they single-families or 2-4 units?

    [email protected]417-427-2612
    0Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    9mo
    Quote from @Nick Cooper:

    I'm trying to close on 2 properties at once. They both equal $215k average rent is $1350 per unit. My DSCR Lender quoted me at 7.5% for 30 years with 20% down. Is there anyone who can beat that?


     Agree with AJ, it dos seem a little high, but that could depend on how you are structuring and things like an applicable prepayment penalty. Plenty of us here that are happy to give a second look!

    0Reply
  • Nick Cooper
    OP
    Contractor · South Vienna, OH · Member since 2019 · 41 posts · 22 votes
    9mo

    @AJ Exner Correct. They are both single family. Also they’re figuring closing to be right under $60k maybe less if closing isn’t as much as they’re figuring for.

    0Reply
  • Nick Cooper
    OP
    Contractor · South Vienna, OH · Member since 2019 · 41 posts · 22 votes
    9mo

    @Andrew Zamboroski Id like that if you’d like to email or DM me

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    9mo

    with 780 credit and a five-year pre-payment this seems high. We are writing similar loans in the 6's. 

    7e investments53 Reviews
    WebsiteView Page
    3Reply
  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 497 votes
    9mo

    If going borrower paid and not lender paid on the compensation, there are loans in the 6s as of this posting for individual property loans. 

    [email protected]818-770-0340
    Bright Skyline518 Reviews
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  • Nick BelskyBusiness Member
    Residential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
    9mo

    @Nick Cooper

    Generally speaking, that is high. We are seeing many DSCR in the low 6's right now. With that said, we know nothing about the actual DSCR, location, or property type... all of which can effect the rate.

    Cheers!

    [email protected]
    Belsky Mortgage, LLC527 Reviews
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    2Reply
  • Chance House
    Lender · Member since 2025 · 15 posts · 6 votes
    9mo

    Hi Nick - 

    While that does sound a bit high at face value, as others have mentioned, there are a number of factors that could influence the rate upward. Nick Belsky mentioned most of them, though I would add that your credit and the size of the loan can have a significant impact on rate options/pricing as well.

    0Reply
  • Doug Smith
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    9mo

    Most people are going to beat that, but there might be things we are missing. The less you put down, the higher the rate is going to be and the more difficult it will be to get the deal to cash flow at 1.0X or higher. Now, might I suggest that there will "always be someone cheaper". It's been my experience that the best ability a lender has is "close-ability". Build a relationship with a pro that knows their stuff and is fair to you. I can't tell you the number of times I've had someone say "but so and so said they can do it cheaper" only to come back later and tell me the other lender either bait-and-switched them or failed to close altogether. That's my 2 center. 

    0Reply
  • Juan Yepes
    Lender · Miami, FL · Member since 2025 · 121 posts · 33 votes
    9mo

    @Nick Cooper you should be able to get a better deal than that. A few lenders that I've worked with in the past are offering rates in the low 6s depending on your loan profile. Happy to make the connection. Feel free to message me and I will share their information.

    0Reply
  • Zack NawabiBusiness Member
    Lender · CA · Member since 2025 · 2 posts · 0 votes
    9mo

    @Nick Cooper lowest rate you can get with that is 6.625% with 20% down. 

    0Reply
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