DSCR loan rates in California range from 7.15% to 10%+ in 2026 depending on your credit score, down payment, DSCR ratio, and lender. This guide breaks down current rates and exactly what you need to get the lowest one.
Rates shown are for 30-year fixed DSCR loans on single-family investment properties in California with 25% down. Actual rates depend on individual qualifications, property type, and lender. Contact us for a personalized quote.
DSCR loans are non-QM products, meaning lenders price them based on risk factors specific to each deal. Here are the main levers:
The difference between a 680 and 760 credit score on a DSCR loan can mean 0.75–1.25% in rate. On a $600,000 loan that's $375–$625 per month. If you're within 30–60 days of a credit score tier, it's worth improving your score before applying.
Higher DSCR = lower rate. Lenders reward properties that generate more income relative to the payment because they carry less default risk. A 1.25 DSCR typically gets better pricing than a 1.0 DSCR from the same lender.
Most lenders offer better rates at 25% down vs 20% down. The 5% additional equity reduces lender risk and often unlocks a 0.25–0.50% rate improvement. On higher-value California properties this tradeoff is worth running the math on.
Single-family homes get the best DSCR rates. Condos, 2-4 unit properties, and short-term rentals carry slight rate premiums. Mixed-use and 5+ unit properties are typically priced even higher.
Jumbo DSCR loans above $1M carry slightly higher rates due to reduced secondary market liquidity. For California's high-cost markets, expect to pay 0.25–0.50% more on jumbo DSCR vs conforming-balance DSCR.
| Loan Type | Rate Range (760 credit) | Income Required | Max Properties |
|---|---|---|---|
| DSCR — wholesale broker | 7.15–7.75% | None | Unlimited |
| DSCR — retail lender | 7.75–8.50% | None | Unlimited |
| Conventional investment | 6.50–7.25% | Full docs required | 10 max |
| Portfolio/bank loan | 7.00–8.50% | Varies by bank | Varies |
DSCR rates run 0.50–1.00% above conventional investment loans — but conventional loans require full income documentation and cap at 10 financed properties. For self-employed investors or those with 10+ properties, DSCR is the only viable path regardless of rate.
The wholesale advantage: Working with a wholesale mortgage broker typically saves 0.25–0.75% vs going directly to a DSCR lender. We access institutional pricing across 10+ DSCR lenders simultaneously and submit your scenario to whoever offers the best rate for your profile.
This is the single biggest rate lever. Pay down credit card balances below 20% utilization, dispute any errors on your report, and avoid new credit inquiries 60+ days before applying.
The extra 5% down often unlocks a 0.25–0.375% rate reduction. On a $700,000 property that's $35,000 more down but saves $145–$218/month — break-even in 13–24 months, then pure savings.
Aim for 1.25+ DSCR at time of purchase. In California this often means looking at inland markets (Sacramento, Riverside, San Bernardino) where rent-to-price ratios are more favorable than coastal markets.
DSCR rates vary significantly between lenders — sometimes 0.50–1.00% for the same borrower profile. A wholesale broker submits your scenario to multiple lenders at once, finding the best rate without multiple credit pulls.
On DSCR loans you're holding long-term, buying down the rate with points can make sense. Each point (1% of loan amount) typically reduces the rate by 0.25%. If you're keeping the property 5+ years, the math usually works in your favor.
Your property's location affects its DSCR ratio but not necessarily the rate — rates are priced on borrower profile and loan characteristics, not geography. However, where you buy determines whether you can achieve a qualifying DSCR at all:
| Market | Typical DSCR (25% down) | Rate Impact |
|---|---|---|
| Sacramento / Inland | 1.10–1.30 | Best rates (strong DSCR) |
| San Diego | 0.90–1.15 | Good rates (solid DSCR) |
| Orange County | 0.75–1.00 | Higher rates (lower DSCR) |
| Los Angeles | 0.70–0.95 | Higher rates (compressed DSCR) |
| San Francisco Bay Area | 0.55–0.80 | Highest rates (difficult DSCR) |
The Federal Reserve has signaled potential rate cuts in the second half of 2026. DSCR loans are not directly tied to the Fed funds rate — they're priced off the 30-year Treasury and non-QM spreads. However, a Fed cut would likely push DSCR rates down 0.25–0.50% over time.
For investors waiting for lower rates: the cost of waiting is often higher than the cost of acting now. Every month you wait is a month without rental income and equity building. If the property cash flows at today's rates, waiting for lower rates is usually the wrong call.
We shop 10+ DSCR lenders simultaneously to find your lowest rate. No income docs required. No credit pull to get started.
See My DSCR RateThe lowest available DSCR rates in California in 2026 start around 7.15% for borrowers with 760+ credit, 1.25+ DSCR, and 25%+ down payment accessed through wholesale lenders. Retail lender rates are typically 0.50–0.75% higher for the same profile.
Yes. DSCR rates fluctuate based on 10-year Treasury movements and non-QM market conditions. Rate locks are typically available for 30, 45, or 60 days once you're under contract.
Yes, generally. Most lenders have pricing tiers at 75% LTV (25% down) and 80% LTV (20% down). The 75% LTV tier typically offers 0.25–0.50% better pricing. Some lenders have additional tiers at 70% LTV (30% down) with even better pricing.
Both options exist. Most DSCR loans are 30-year fixed rate. Some lenders also offer 5/1, 7/1, and 10/1 ARM products with lower initial rates. ARMs make sense if you plan to sell or refinance before the adjustment period — but come with prepayment penalty considerations.
Making Mortgage Easy is a licensed California wholesale mortgage broker. NMLS# 1082653 · DRE# 02244476 · Shield Home Loans Inc. NMLS# 2396589. Rates shown are illustrative ranges as of May 2026 and subject to change daily. This content is for informational purposes only and does not constitute financial or investment advice.