Dscr Loan Rates

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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
1y

@Mordechai Reiss I don't know but I can tell you the rate will depend on the loan to value and the debt coverage ratio. 

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Mordechai Reiss:

    Whats the going rate for dscr loans for multifamily investment properties in Ohio? I got one quote so far and it seemed really high.  I'm a new investor with a credit score around 770.

    Thanks


     How many units?

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    1y

    @Mordechai Reiss I don't know but I can tell you the rate will depend on the loan to value and the debt coverage ratio. 

    4Reply
  • Zachary DealPro Member
    Lender · Member since 2023 · 464 posts · 425 votes
    1y

    Need a bit more info most DSCR loans I'm seeing are in the high 5 - low 7 range currently

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    1y
    Quote from @Mordechai Reiss:

    Whats the going rate for dscr loans for multifamily investment properties in Ohio? I got one quote so far and it seemed really high.  I'm a new investor with a credit score around 770.

    Thanks


     7

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  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    1y
    Quote from @Mordechai Reiss:

    Whats the going rate for dscr loans for multifamily investment properties in Ohio? I got one quote so far and it seemed really high.  I'm a new investor with a credit score around 770.

    Thanks

     If a 5Y Prepayment penalty can be added (in OH many scenarios now only allow for a 1Y PPP) and its a purchase, I've seen rates under 7% with 1pt coming to the lender. 

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  • Mordechai Reiss
    OP
    Member since 2025 · 2 posts · 7 votes
    1y

    im looking at duplexes in the 300k range 25% down

    1Reply
  • Andrew Zamboroski
    Lender · Member since 2021 · 495 posts · 130 votes
    1y
    Quote from @Mordechai Reiss:

    Whats the going rate for dscr loans for multifamily investment properties in Ohio? I got one quote so far and it seemed really high.  I'm a new investor with a credit score around 770.

    Thanks

    6’s should be reasonable on this one without being exploited for fees. Reach out if I can be of assistance in any ways.
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  • Nick BelskyBusiness Member
    Residential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
    1y

    @Mordechai Reiss

    Assuming you are not a first time investor nor first time home buyer, this prices out between 6.875% to 7.00% on a 5yr PPP at 75LTV.  

    What are you seeing that is "high"?

    Are you working with a mortgage broker?

    Cheers!

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  • Laurie Reiss
    Lender · Member since 2025 · 9 posts · 5 votes
    1y

    if you get the application in the next 2 days- We can offer 5.99%

    0Reply
  • James Stout
    Lender · Irvine, CA · Member since 2025 · 27 posts · 8 votes
    1y

    @Mordechai Reiss with your profile (770 credit, duplex purchase in the $300K range, 25% down), the quotes you're getting in the high-6's to around 7% line up with what I'm seeing in today's market. Rates swing depending on the leverage, DSCR strength, and whether you accept a prepay, but for a straightforward Ohio duplex deal, mid-6's to low-7's is pretty typical right now.

    If someone dangled 5.99% to you, that’s a sharp rate—just make sure you read the fine print on fees and points. Sometimes the headline looks great but the total cost of capital isn’t.

    Bottom line: you’re not being quoted out of line. Shop it with a couple of lenders, weigh the points vs rate trade-off, and you’ll have a good benchmark.

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    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      1y
      Quote from @James Stout:

      @Mordechai Reiss with your profile (770 credit, duplex purchase in the $300K range, 25% down), the quotes you're getting in the high-6's to around 7% line up with what I'm seeing in today's market. Rates swing depending on the leverage, DSCR strength, and whether you accept a prepay, but for a straightforward Ohio duplex deal, mid-6's to low-7's is pretty typical right now.

      If someone dangled 5.99% to you, that’s a sharp rate—just make sure you read the fine print on fees and points. Sometimes the headline looks great but the total cost of capital isn’t.

      Bottom line: you’re not being quoted out of line. Shop it with a couple of lenders, weigh the points vs rate trade-off, and you’ll have a good benchmark.


       I agree best we have seen is 6.5% some are lower but have high points/fees that are basically buying down the rate. Something like this will probabably be 6.75%-7% and 1point would be where we would probably end up landing if we were pricing it as we just did 3 today that were in that range.

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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 923 votes
    1y

    @Mordechai Reiss

    For DSCR in Ohio right now you'll usually see rates in the 6.8%–7.5% range for small multifamily, though I've seen some agency-backed loans on bigger buildings closer to the mid-5s. With your 770 credit, you should be able to land toward the lower end if the property cash flows well. I'm based in Ohio and invest here myself—happy to share some lender contacts and walk you through options if you'd like to connect.

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 501 votes
    1y

    As of this writing, rates are in the 6s and 7s depending on credit, loan to value, prepayment penalty term, having at least a DSCR 1 ratio etc. There are different factors that go into the rate.

    Here's a bit more in detail about how rates are calculated for DSCR loans:

    1. Credit score- the higher the best. 760-780+ generally gets best pricing for investment property loans with most lenders. From there every 20 point increment affect pricing differently. So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.

    2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

    3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate. 

    4. Are you cash flowing the property? More on how that is calculated below. Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable). Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit. This criteria is for 1-4 and 5-8 unit programs.

    5. All other factors being equal (borrower credit score, LTV, etc), a rate will be higher for a cash out refinance compared to a purchase as rates are supposed to measure risk for a lender and there's a bigger risk of default when an investor does a cash out refinance versus doing a purchase.

    Happy to connect to discuss further. 

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  • Timothy Hero
    Lender · United States · Member since 2020 · 1k+ posts · 499 votes
    1y

    If it's over 4 units, the rate will be much higher than 1-4 unit deals right now. The 5+ market for note buyers is dramatically slow, to adjust for risk, lenders raise the rates.

    Here's a quick scenario: I quoted a 75% LTV cash-out at 6.5%. That same lender quoted 7.8% for an 8-unit.

    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1y
    Quote from @Mordechai Reiss:

    Whats the going rate for dscr loans for multifamily investment properties in Ohio? I got one quote so far and it seemed really high.  I'm a new investor with a credit score around 770.

    Thanks

    Hey Mordechai! Glad to see you hear on BP! On DSCR loans for multifamily properties in Ohio, with your strong 770 credit score you should generally expect rates in the 6% to 7% range depending on the lender and deal specifics. Some lenders in Ohio are advertising DSCR loans starting around 6.0%, others closer to 6.6%, and some programs are more in the 7.0% range. If the quote you got felt high, it may just reflect lender-specific pricing or the way they're structuring your deal, since these products can vary a lot based on property DSCR, LTV, and even whether it's a more "no-doc" style loan. The best move is to shop around and compare several quotes because with your credit score you should be competitive for the lower end of the spectrum. DSCR loans are designed to be flexible since they underwrite the property more than the borrower, so long as the property cash flows and hits the lender's DSCR threshold (usually around 1.0–1.25), you should be in a good position. Happy to connect and answer any questions you have!

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  • Bridget BrickBusiness Member
    Lender · Direct-to-Wholesale DSCR Loans | BRRRR & No-Seasoning Refi | 46 States · Member since 2025 · 53 posts · 11 votes
    1y

    @Mordechai Reiss Your rate depends on 5 factors these are added to the base rate: 

    For us it's 
    Fico: a 770 is + 0.375%
    Location: some states + 0.375%
    Property Type: 2+ units + 0.25-0.375%
    Loan amount: $100-$149 + .25%, under $100k, + .75%
    DSCR: 1.0-1.15 + 0.125%
    PPP: 3yr +0.375%

    Base rates are in the high 5' but there are factors that cause things to be added to the base rate.

    Best case scenario, our lowest rate at 75% on a purchase would be: 6%
    at 80% LTV it's 6.375%

    if you have all of the above factors, that could push you into the 8's


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  • Vandana Thapa
    Lender · 10220 SW Greenburg Rd Portland OR United States, OR · Member since 2025 · 16 posts · 8 votes
    1y

    @Mordechai Reiss With a 770 credit score, you're in a strong spot, but DSCR loans for multifamily in Ohio still run higher than traditional mortgages. Most lenders right now are pricing in the 6.5% to 8% range, depending on leverage, cash flow strength, and your experience as an investor.
    Key things that drive the rate:
    - Loan-to-Value (LTV): 70–80% max is typical; higher leverage = higher rate.
    - DSCR strength: 1.25+ usually earns better terms.
    - Property type/condition: more stable = cheaper.
    - Investor experience: being new may push you up slightly.
    - Lender type: agency or commercial lenders can be more competitive than private DSCR shops.
    If you were quoted well above 8%, that’s on the high side for today’s market. With your credit profile, you should be able to find something more competitive by shopping around with investor-focused lenders. 

    This response is for educational purposes only and not intended as financial, tax, or legal advice. Always consult your own advisors before making investment decisions.

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