Should I be able to get better than 7.8% for 30 year fixed?

General Real Estate Investing
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Should I be able to get better than 7.8% for 30 year fixed?

Felix Sharpe
Attorney · Louisville, KY · Member since 2023 · 30 posts · 8 votes

Hello all, 

I am ready to jump on deal No. 2. 

I have a property I like. It would be a traditional long term lease property. 3 bed, 2 bath, single car garage. 

I was estimating 7% on a 30 year fixed rate, non-owner occupied loan. 

However, the preapproval came back at 7.8%, which makes this deal not as attractive.

Should I keep looking for financing at 7% or are the upper 7s the going rate right now?

Thanks!

-Felix

1Reply
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Most Popular Reply

James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 707 posts · 519 votes
9mo

7.8% is not abnormal right now for a 30-year fixed, non-owner-occupied loan. Upper 7s are very common in the current market.

A few important clarifications that matter more than the headline rate:

Investment loans price higher than primary homes

Non-owner-occupied 30-year fixed loans typically run 75–125 bps higher than owner-occupied. If primary rates are mid-6s to low-7s, high-7s on an investment loan is within range.

7% flat usually requires tradeoffs

Getting closer to 7% often means:

Buying points

Stronger DSCR or lower LTV

Excellent credit plus reserves

Portfolio lenders or relationship pricing

Those options exist, but they aren’t “default” quotes.

The rate alone shouldn’t kill the deal

If the deal only works at 7.0% but fails at 7.8%, it’s thin. In this environment, deals need margin for rate volatility. Many investors are underwriting at 8–8.25% to stay conservative.

You may be looking at the wrong product

Depending on the property and your profile, you may want to compare:

DSCR loans

5/7 or 7/1 ARMs with refinance plans

Portfolio lenders with relationship discounts

Not necessarily cheaper today, but more flexible long term.

Refinancing is part of the plan

Most investors closing right now are assuming a future refinance, not a permanent rate. The question becomes:

Does the deal survive today and improve later?

Bottom line:

Yes, you can sometimes find 7-handle rates, but upper 7s are the going rate for vanilla 30-year fixed investment loans. If that rate breaks the deal, either the price needs to move or it’s not a deal worth forcing.

The market rewards patience and margin right now, not optimism.

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  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    9mo

    @Felix Sharpe

    mid to upper 7s are what I am seeing for DSCR. can get lower with conventional probably with a buy-down.

    every lender talks a big game until you tell them it's an investment property :-)

    1Reply
  • Felix Sharpe
    OP
    Attorney · Louisville, KY · Member since 2023 · 30 posts · 8 votes
    9mo

    This would be conventional. Great credit.

    0Reply
  • Jake AndronicoBusiness Member
    Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
    9mo

    @Felix Sharpe

    Just spoke to a lender in Reno, NV and with 25% down and 2% seller concessions, he could buy it down to around 5.75% with a great credit score. 

    That sounds high to me. 

    How much were you planning on putting down? 

    415-233-1796
    0Reply
    • Felix Sharpe
      OP
      Attorney · Louisville, KY · Member since 2023 · 30 posts · 8 votes
      9mo

      @Jake Andronico 20% down. Don't really want to buy points. 

      1Reply
    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      9mo
      Quote from @Felix Sharpe:

      @Jake Andronico 20% down. Don't really want to buy points. 


       if you are not paying any points then that rate is probably in line or not that far off. 

      7e investments53 Reviews
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      0Reply
    • Jake AndronicoBusiness Member
      Realtor · Reno, NV · Member since 2019 · 1k+ posts · 938 votes
      9mo
      Quote from @Felix Sharpe:

      @Jake Andronico 20% down. Don't really want to buy points. 

      It would be paid by the seller in the scenario I gave. If it's paid for from the seller, is there a reason why you wouldn't want to? 
      415-233-1796
      0Reply
    • V.G JasonPro Member
      Investor · Member since 2022 · 3k+ posts · 3k+ votes
      9mo
      Quote from @Jake Andronico:
      Quote from @Felix Sharpe:

      @Jake Andronico 20% down. Don't really want to buy points. 

      It would be paid by the seller in the scenario I gave. If it's paid for from the seller, is there a reason why you wouldn't want to? 

       Cause the seller can pay me directly, and I'd rather have the cash.

      With that said 7.8% sounds reasonable for investment property with 20% down, no points & conventional. Even with a great credit score, what's your DTI after this house?

      It's likely why you're .75-1% higher than you think you should be. It's going to get dinged, you'll need to probably get to 25% down or up to 33% down to shed the DTI issues by loading this asset onto your balance sheet.

      One way or another, you're going to pay. 

      0Reply
  • Elias HalvorsonBusiness Member
    HI · Member since 2024 · 225 posts · 130 votes
    9mo

    Felix, Im only licensed in HI and WA so not trying to sell you anything, but I estimated a 300K purchase price, 20% down, 780 credit for an investment property on a SFH and I see one lender offering about 6.7%, no points. I would definitely shop that rate with some mortgage brokers in your area.

    808-517-6416
    Elias Halvorson C2 Hawaii NMLS#1697041HI Branch NMLS#1244222 585 Reviews
    WebsiteView Page
    1Reply
  • Jacob Thorpe
    Lender · Lake Geneva WI, USA · Member since 2023 · 141 posts · 72 votes
    9mo
    Quote from @Felix Sharpe:

    Hello all, 

    I am ready to jump on deal No. 2. 

    I have a property I like. It would be a traditional long term lease property. 3 bed, 2 bath, single car garage. 

    I was estimating 7% on a 30 year fixed rate, non-owner occupied loan. 

    However, the preapproval came back at 7.8%, which makes this deal not as attractive.

    Should I keep looking for financing at 7% or are the upper 7s the going rate right now?

    Thanks!

    -Felix


    Is this a DSCR purchase? I just wrote a conv. rate and term refi for 5.99. I am registering a portfolio bridge 75% cash out at 6.78% no seasoning on title now. I think I can get DSCR no prepayment penalty for around 6.5% without buydown 30yr fixed, 80-85% LTV, would have to check the matrix. That rate seems high without seeing anything about the deal, loan type your talking about or knowing how youre qualifying

    0Reply
  • Matthew Thornton
    Member since 2025 · 104 posts · 37 votes
    9mo

    I believe my Investors are getting DSCR's right now in the high 6's

    0Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 707 posts · 519 votes
    9mo

    7.8% is not abnormal right now for a 30-year fixed, non-owner-occupied loan. Upper 7s are very common in the current market.

    A few important clarifications that matter more than the headline rate:

    Investment loans price higher than primary homes

    Non-owner-occupied 30-year fixed loans typically run 75–125 bps higher than owner-occupied. If primary rates are mid-6s to low-7s, high-7s on an investment loan is within range.

    7% flat usually requires tradeoffs

    Getting closer to 7% often means:

    Buying points

    Stronger DSCR or lower LTV

    Excellent credit plus reserves

    Portfolio lenders or relationship pricing

    Those options exist, but they aren’t “default” quotes.

    The rate alone shouldn’t kill the deal

    If the deal only works at 7.0% but fails at 7.8%, it’s thin. In this environment, deals need margin for rate volatility. Many investors are underwriting at 8–8.25% to stay conservative.

    You may be looking at the wrong product

    Depending on the property and your profile, you may want to compare:

    DSCR loans

    5/7 or 7/1 ARMs with refinance plans

    Portfolio lenders with relationship discounts

    Not necessarily cheaper today, but more flexible long term.

    Refinancing is part of the plan

    Most investors closing right now are assuming a future refinance, not a permanent rate. The question becomes:

    Does the deal survive today and improve later?

    Bottom line:

    Yes, you can sometimes find 7-handle rates, but upper 7s are the going rate for vanilla 30-year fixed investment loans. If that rate breaks the deal, either the price needs to move or it’s not a deal worth forcing.

    The market rewards patience and margin right now, not optimism.

    4Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 667 votes
    9mo
    Quote from @Felix Sharpe:

    Hello all, 

    I am ready to jump on deal No. 2. 

    I have a property I like. It would be a traditional long term lease property. 3 bed, 2 bath, single car garage. 

    I was estimating 7% on a 30 year fixed rate, non-owner occupied loan. 

    However, the preapproval came back at 7.8%, which makes this deal not as attractive.

    Should I keep looking for financing at 7% or are the upper 7s the going rate right now?

    Thanks!

    -Felix


     Shop it out theres always something more competitive out there. I would also maybe enteratin and interest only option that would help squeeze some more juice out of the fruit.

    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
    WebsiteView Page
    0Reply
  • Nick DiSanza
    Investor · Orlando, FL · Member since 2025 · 30 posts · 8 votes
    9mo

    Hi Felix.. def shop it and look at DSCR. I can quote you out on DSCR with low origination fees for comparison. Let me know

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    9mo

    @Felix Sharpe I'm seeing rates in the low to mid 6s depending on your credit score. Feel free to reach out and I'd be happy to share my lending sources.

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
    WebsiteView Page
    0Reply
  • Julien Hill
    Lender · Newark, NJ · Member since 2026 · 13 posts · 1 vote
    9mo

    Hey Felix, the property and sponsor level details would determine whether this rate is palatable. On purchase scenarios with 1.25 DSCR and 720 credit, we're seeing mid 6's at 75% LTV. For 20% down we would fall in the high 6's low 7's range

    Definitely happy to take a look for you if it helps

    0Reply
  • Greg Ochotorena
    Dallas, TX · Member since 2025 · 1 post · 0 votes
    9mo
    Quote from @Felix Sharpe:

    Hello all, 

    I am ready to jump on deal No. 2. 

    I have a property I like. It would be a traditional long term lease property. 3 bed, 2 bath, single car garage. 

    I was estimating 7% on a 30 year fixed rate, non-owner occupied loan. 

    However, the preapproval came back at 7.8%, which makes this deal not as attractive.

    Should I keep looking for financing at 7% or are the upper 7s the going rate right now?

    Thanks!

    -Felix

    In NJ, pricing differences often come down to structure and product, not just the rate environment.

    With business-purpose DSCR loans, vesting in an LLC removes certain consumer-loan constraints and opens up additional pricing and product options when structured correctly.

    That is why DSCR can sometimes price better than expected. Structure matters.

    0Reply
  • Bo SmithPro Member
    Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
    7mo

    7.8% isn't terrible for non-owner occupied right now, but you can definitely shop around. Credit unions and portfolio lenders often beat the big banks by 0.25-0.5%. Also check if you qualify for relationship discounts - some lenders drop rates if you bring multiple accounts over. What's your credit score and down payment percentage? Those two factors make the biggest difference in rate shopping.

    0Reply
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