Who can qualify for a 5.625 percent DSCR rate?

Typical requirements include a minimum credit score around 700 or higher, a DSCR of at least 1.00 with 1.10 or better preferred for top pricing, and a 1 to 4 unit rental property. Long term and short term rentals may qualify, with leverage usually up to 75 percent for cash out and up to 80 percent for purchases or standard refinances.

What documents do I need to apply for a 5.625 percent DSCR loan?

You will typically need the property address, purchase price or current value, annual estimated rent, annual taxes, insurance and HOA if applicable, your credit score range, your preferred loan structure and your entity documents such as EIN, formation paperwork and operating agreement if closing in an LLC.

Can I use the 5.625 percent DSCR rate for both purchase and refinance?

Yes. The same DSCR rate tier can generally be used on both purchases and refinances, including cash out refinances, as long as you meet the lender’s guidelines for credit score, DSCR, leverage and property type.

How much more cash flow does a 5.625 percent DSCR rate create compared to 7 percent?

In the example used in the article, on a 300,000 dollar rental with an 80 percent LTV loan, taxes and insurance of about 400 dollars a month and rent of 2,300 dollars, a 7 percent DSCR rate produces roughly 304 dollars in monthly cash flow while a 5.625 percent rate produces about 519 dollars. That is a gain of around 215 dollars per month or about 2,580 dollars over 12 months and roughly 12,900 dollars over five years.

Can first time investors qualify for a 5.625 percent DSCR loan?

Yes. Many DSCR lenders are willing to work with first time investors as long as the property cash flows and you meet basic credit and leverage requirements. Having prior landlord experience can help, but it is not always required.

How long does it take to close a DSCR loan at this rate?

Once you have chosen terms and locked your rate, most DSCR loans can close in about 30 days if you respond quickly to underwriting requests, complete the appraisal on time and have your entity and documents ready.

What is the first step to see if I qualify for the 5.625 percent DSCR rate?

The first step is to share basic details about the property, your estimated rent, taxes and insurance, your credit score range and your closing timeline with your lender. From there they can run a DSCR analysis, show you a couple of loan structures and confirm whether you can access the 5.625 percent pricing this month.

Unlock a 5.625% DSCR Rate: Steps to Qualify Now

Yes, You Really Can Get a 5.625% DSCR Rate. Here’s How

If you’ve been watching DSCR rates all year, you know how rare this is. For most of 2024 and 2025, investors were stuck with 6 to 7 percent, sometimes even 8s depending on credit score, DSCR, and leverage.

But this month, for the first time in a long time, investors can qualify for as low as 5.625 percent. It’s a real DSCR pricing available right now for a limited window.

If you want cheaper monthly payments, stronger cash flow, and easier DSCR qualification, this is the moment to take action. And it likely won’t last.

Here’s exactly how to lock this rate, who qualifies, and what you need ready before applying.

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What This 5.625 Percent DSCR Offer Actually Is

DSCR lenders adjust pricing based on several factors. Treasury yields, lender cost of capital, loan tiers, and market competitiveness.

This month, a few lenders opened a special pricing for qualified borrowers hitting key criteria. This isn’t a publicly advertised rate. It’s relationship-based, volume-based, and only available through select channels.

Translation: You get a rare window where pricing is actually in your favor.

Who Can Lock 5.625 Percent Right Now

Not everyone will qualify but more people qualify than you’d think. Here are the typical requirements:

• Minimum credit score: 700 and above
• Minimum DSCR: 1.00+ (1.10+ preferred for best pricing)
• Property type: Long-term rentals, Short-term rentals 1 to 4 units
• Experience: No prior landlord experience required but helpful
• Prepayment penalty: Standard 3 or 5 year
• LTV: Leverage up to 75% for cash-out refinancing and 80% for purchase or refinancing

*This can move anytime, contact me for best terms!

What You Need Ready Before Applying

If you want to lock this rate before it disappears, get these items ready today:

Subject property address
Purchase price or current property value
Annual Estimated market rent (LTR or STR)
Annual Tax, Insurance, HOA
Credit score
Desired loan structure (I’ll guide you through the options. LTV, Interest Only or fully amortized 30 year, Prepayment penalty)
Entity documents (EIN, Formation, Operating agreement)
Your timeline to close

There are various factors that can determine a DSCR rate, so talk to your lender to achieve your goal of max. cash flow vs. min. cost vs. max. cash out.

Exact Steps to Lock the Rate Before It’s Gone

Here’s the simplified sequence:

Send property details for a DSCR income check
I run the number and give you a couple options to find the best terms for your cash flow, cost, or cash-out goal.
Fill out the application and finalize the terms
Your credit wouldn’t be pulled on this stage.
Lock the rate
Once you’ve decided on the final terms, your credit will be pulled and rate locked.
Underwriting begins
Appraisal ordered, documents submitted, entity confirmed.
Closing timeline
DSCR loans typically take about 30 days when prepped correctly.

The key: If you’ve been waiting for the lower rate, don’t wait and start the conversation today!

Example Scenario: 5.625 Percent vs 7 Percent

Let’s compare the same rental property:

Price: $300,000
Loan: 80 percent LTV (240,000 loan amount)
30-year fixed

Scenario	Monthly Payment	Monthly Cash Flow(rent-tax-insurance)	Savings Monthly	Savings 12 Months	Savings 5 Years
7% Interest Rate	$1,596	$304	—	—	—
5.625% Interest Rate	$1,381	$519	🌟 $215	🌟 $2,580	🌟 $12,900

This is what cheaper debt does:
It gives you stronger DSCR(Debt Service Coverage Ratio), higher cash flow, and more room for reserves.

How to Start Today

If you want to see if you qualify for the 5.625%, here’s what to do:

Send me your property details (address, purchase price/property value, annual rent, tax, insurance) at dahae@roamingevergreen.com or contact me here.
Tell me your credit score range
Tell me your target closing timeline and goal
I’ll run a couple of DSCR scenarios and confirm if you qualify for the discounted pricing this month

This offer will be gone next month. If you want cheaper payments and stronger cash flow, now is the time.

FAQs

Can I lock this on a purchase or refinance?
Yes, both qualify.

What if my DSCR is slightly below 1.0?
We can still check eligibility.

Does this work for short-term rentals?
Yes

Can first-time investors qualify?
Yes. DSCR loans are designed for investors without landlord history.

If you want to follow exact steps, questions, mistakes made from my client’s 30 day journey to closing a DSCR loan, read my blog post here.

About the Author

Dahae Yi is a private money lender and real estate funding educator specializing in fix and flip and BRRRR financing. She teaches investors how to structure lender-ready deals and offers flexible, relationship-based funding terms that improve as the partnership grows. Her content is designed to help investors own their first one to five properties while avoid common funding mistakes.

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@dahaeyi.lender for Private Money & DSCR Lending Tips