🎙️ Daily Mortgage Rates LIVE 10/29/25: DSCR Loans for Investors

Dive into DSCR Loans (Debt Service Coverage Ratio Loans) on this episode of Daily Mortgage Rates LIVE! Learn how these investor-focused loans differ from traditional mortgages, why they’re easier to qualify for, and how they can help you maximize cash flow. Our hosts and industry experts break down key strategies, market trends, and underwriting tips to help you grow your real estate portfolio. Tune in now to discover how DSCR Loans can unlock your next big investment!

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The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages...

Transcript

Welcome, everyone. We are live here with another edition of the daily rates live. We are just firing back up. We will go over our live mortgage rates today.

Definitely a big day for rates and then we will review a few specific examples for one of our favorite loan types, our DSCR loans. So we'll just give a minute for all of the platforms to go live here and then we'll get into our live demo. If you have any questions or need any assistance, please feel free to drop any comments there. We will get to those as soon as we do our demo. Alright.

Looks like we're going live on all the different platforms. Alright. So it's been about a minute. Most of the forms should be live, so thank you everybody for tuning in nice and early. Today, we're going to go over our live mortgage rates and then a few specific examples for DSCR loan, or debt service coverage ratio loans specifically for investors investing in rental properties using simply the estimated rents in order to underwrite the loan.

No personal interest in it and these are the typically the types of loans we can do for short term rental properties we'll talk about here in a second and the types of loans we can do to close in an LLC, a business purpose loan. So these are some of our most popular products, but first, let's get into, some of the general market changes for today. So first off, as, we mentioned, today is a big day for rates as the Fed is meeting. So just quickly go over the ten year treasury, which is one of the best things to track rates. I just wanna let everybody know that we are definitely at one year lows, which is amazing.

That's why we're all very excited. But please and that the changes today are already pretty much priced into the market. So you can see here as the markets generally expect the Fed to lower rates by a quarter point. You can see here that's it's already kind of leveled off. You won't see a lot of changes here to the ten year or necessarily to mortgage rates today, as it is a big news announcement.

It doesn't actually change things dramatically because it is already priced into the market. Everybody's expecting it. And as you see here, we are at one year lows for the same year, which also corresponds to the same mortgage rates. So definitely good news for everybody here. These are some of our lowest rates that we've been able to do for over a year.

Now let's get into our live rates today. So now it is about, just after twelve, eastern time here and we are able to see a lot of our live mortgage rates for today. And we'll start with a few of our standard examples here. These are all based on live rates today for a standard single family home, 500,000 purchase, 300,000 loan response is 60% loan to value, seven sixty FICO, 40% debt to income ratio. These are the basics we set up for all our scenarios that way we can compare apples to apples across all the different programs.

Of course every program has its own max and min LTV we can take it to, but this allows us to compare across all the different programs. So first up here, our conventional rates for a primary home, typically the standard loan that you think of when you think of a mortgage loan. Coming in today, rates as low as point seven five. Finally, PR you see here, 6.02 when you include all of the different fees. So definitely great there.

We're definitely well under the sixes, which is amazing. It's been quite a while since we've been there. Now if we switch over to our FA loan program, so these are for our borrowers that maybe have a little bit, lower credit than some of our conventional options. And FHA does have a fixed MI figure whereas conventional requires PMI. So those are some of the reason we might use an FHA loan.

And also we can combine FHA as we went over it last time with DPA and other special programs, so that's a great option. FHA coming in today. Rates as low as 5.125. And the final APR comes in at 6.035. Just keep in mind, FHA does have an upfront mortgage insurance premium and monthly as well.

So that's why even though the rate is lower, you see the APR is about equal. So that's why we always use the APR to compare equally across the programs. Now coming up next, our VA for eligible vets and active service members and their surviving spouses. And we can offer VA rates today down to 5.1 about the same as FHA. But VA does have some benefits for our service members there, and that is a little bit lower fees than FHA.

And also we can go up to a LTV here for our eligible vets. That means the APR comes in at 5.385 because there are much lower fees here for our veterans when you compare to FHA even the same program. So always look at that APR to compare across the programs. Another pretty standard program we always go over here, USDA for properties in USDA eligible areas. Rates coming in today at 5% flat.

With all of the fees included in USDA, the APR comes in at 5.64. So for those in those USDA eligible areas, definitely a great option. And now we can get into some of our unique programs, our favorite options, NonQM. First up, NonQM alt doc for a primary home. That means we can use a full documentation just like a standard loan, but we can also use bank statements, p and l statements, ten ninety nines, all kinds of different alternative documentation options we can use here.

Rates coming in today, amazing six, five point eight seven five rate. And finally, PR with all the fees included, 6.145 there for our non QM primary homes. Absolutely amazing. And we can use the same terms, non q m bulk dot programs for investment properties. And those come in today at our standard thirty year fixed option, rates as low as 6% flat.

Final APR comes in at 6.32 when we do that for an investment property. So that is pretty amazing as well when we can compete with conventional with our alt doc. Now you see here our conventional option for an investment property coming in at 6% as well. Total APR is 6.311. So just a touch cheaper for conventional and final overall costs, but amazing we can get the same rates.

And our topic for today, DSCR, one of our favorite loan programs, debt service coverage ratio. It means we don't personal income or employment information in order to do this loan. We simply use the estimated rents from the investment property in order to qualify the loan. So these are our favorite programs for investors. As I mentioned before, allow us to close in LLCs and even do short term rental properties which we're gonna talk about here in a second.

So our standard three year prepayment penalty option here, first up, your fix coming in at 5.875. Absolutely amazing for a DSCR option. Final APR, 6.193 for that option. And we can take it up to a year prepayment penalty to improve the cost. It does come in at the same rate today, but notice the APR comes in at 6.145.

I mean, this option has slightly lower cost than the three year option, which is typical for our five year option. And we do have a no prepayment penalty option for our investors that don't want a prepayment penalty. No problem. It does our rates come in at six point zero zero zero. Our APR is 6.321.

Still amazing, very, comparable to conventional, which is out of this world. And we also have our fixed rate second mortgage products that we can do in under our non QM realm. So, this includes full doc, bank statement, p and l's, etcetera. And these allow our borrowers to not touch their if the rates are still lower than what you see today, We can still get cash out using a fixed rate second mortgage for some great rates. These are definitely lower than a HELOC, so definitely preferred when you compare it to a HELOC.

Our fixed rate second mortgage for primary home coming in at rates as low as 7.75 to get that cash out. Final APR comes in at 8.08. See there? And to do the same program, second mortgage to get cash out of an investment property, and we can use alternative income, such as bank statements, p and l, and even a DSCR for our second mortgage options for our investors out there. And that comes in today at 8.75, finally PR 9.147 there.

And we have a few other DSCR options for forty year fixed and forty year interest only, which are very cool as well, but we won't get into that today. We will get into our specific topic. So with every episode of this show, we always wanna make sure we go into some specifics. So I went into my local neighborhood here and found a home that looked, perfect for an investment property. So, this one looked like it was already possibly being used as an Airbnb home where they rented it out.

You'll see here in the description, has some great info. We have here our listing agent, so might wanna reach out to him there once I set this up. But you get the point. I wanna make sure we have a real example here. The property is pretty expensive, but that's because it is right in downtown and obviously has a little bit of a resort feel.

But this was a great example we could as this is a property that our investors may look at for either a long term investment for long term rents or a short term rental property for every etcetera. So that's why I wanted to choose one that would work for either. So this is just a good example, and we'll pull up our first demo scenario. So if our wants to purchase this property for only 15% down or 85% loan to value, We can do that for this exact property as long as we're using long term rent. This is going to be a long term rental and we can get our estimated rents, to cover the payments here, then we can go ahead and do this loan with no other required.

So you see here our rates for this program at the MaxLTV come in a little bit higher, but these are still amazing for investors to put very little down. 7.99 lowest rate either has 3.225 in cost and we have options, to raise the rate there a little bit to 8.374 and get the cost down to 2.1. We are going to need to make sure our DSCR covers the payment. So as long as our DSCR, our monthly rents can cover this payment with the tax and insurance as well, then this loan will apply. And you see here, the loan breaks down to, the purchase price that was listed there on the listing, the down payment of 15%, and this is the amount we are financing here in this.

And you can see it pulls up the property, the taxes, the actual Zestimate of the property and all the other details of the loan and an instant insurance estimate. Now let's get into some other examples. So if our investor doesn't want to pay some of the higher rates and cost to go for a 15% down option or standard option, which is typically 20% down. So this is more standard option and you'll see more standard rates like we looked at before. So this 80% loan to value purchase quote for that exact property will work for long or short term rents as long as they do cover.

Remember, when you short term rents to qualify, there are restrictions, special statements give and they will give some reductions to those amounts. So it is sometimes difficult to find which one will work best, but this option will work for either. So here we have a 5.875 rate, cost of 2.975, so that's the lowest rate we can buy down to. And there's even an option here for a lender credit here at 6.625 rate. We can even get a lender credit towards some closing costs.

So a bunch of different options in between. This is our more standard, more competitive option, and our DSCR options are absolutely amazing at this moment. And this is, again, using us more 20% down, which allows us to get the rate down quite a bit here. And remember this works for long or short term rents and includes the standard five year prepayment bill to improve the price. And one other thing I wanna touch on before we sign off today are our cash out refinance options in our DSCR.

So a lot of our investors out there may have already owned this property. So maybe if this owner of this property, instead of wanting to sell, perhaps they wanted to just get some in order to cover some expenses that they needed. In that case, we can switch over here to our max cash out option. There are obviously better pricing at lower cash out, but we do have an amazing 80% LTV cash out option, which our investors really love to utilize here. So using our 80% low value cash out for this exact property, you see here we have options.

Let me click that all the way down to 6.875 is the lowest rate we can buy it down to. And we even have options with a lender credit here at 7.875 rate. So pretty amazing rates to even get the maximum cash. Typically, this would have to be a full doc loan. DSCR loans typically restricted to 75% cash out, but in this case, we can go up to 80 as long as we're using long term rents.

If we're going to use short term rents, our max LTV is typically going to be 75% of the cash out there. So some great options for our investors. We absolutely love our DSCR programs. And, with rates going down today, we should see some improvement in non q m and the DSCR as well. Just remember, it's pretty much already priced into the rates you saw today with the big Fed announcement.

So hopefully everyone can get out there and get shopping as rates are improving all around, and feel free to reach out to our team. We'd be happy to send you an instant quote on any of the programs that we discussed, including our DSCR programs. So thanks everybody for tuning in, and we'll catch you next time on Daily Race Life.