The quick read: A DSCR loan rate in September 2026 is the 10-year Treasury yield plus a lender spread, adjusted up or down by points, the property's DSCR and LTV tier, and the length of the prepayment penalty. The 10-year was 4.96 percent on September 21, 2026, according to FRED. No public index publishes a DSCR rate, so any all-in rate below is illustrative, not a quote.
As of: September 21, 2026 (latest FRED observation read on September 22, 2026) Benchmark: 10-year Treasury (FRED DGS10) at 4.96 percent Shorter benchmark: 5-year Treasury (FRED DGS5) at 4.83 percent Policy backdrop: FOMC raised the federal funds target range by 1/4 percentage point on September 16, 2026 What this page is: a stable monthly page on how DSCR pricing is built, refreshed in place each month
What sets a DSCR loan rate in September 2026?
A DSCR loan rate in September 2026 is set by taking a benchmark Treasury yield, most often the 10-year, adding the lender's spread for credit and liquidity risk, and then adjusting that base for points paid, the DSCR tier, the LTV tier and the prepayment term. Every one of those levers is negotiable before a term sheet is signed.
The benchmark is the part nobody negotiates. On September 21, 2026, the Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity was 4.96 percent, per the FRED DGS10 series. The 5-year constant maturity yield was 4.83 percent on the same day, per the FRED DGS5 series. Lenders that fund DSCR loans by selling them into securitizations or to whole-loan buyers price off the yields those buyers demand, and those buyers watch the Treasury curve.
The spread is where lenders differ. It reflects the lender's cost of capital, how much of that loan type it wants this quarter, and how it views the property and the borrower. Two lenders looking at the same rental file on the same morning can quote spreads that are meaningfully apart, which is why comparing more than one term sheet matters more than any published rate table.
For the live Treasury and SOFR readings rather than a monthly snapshot, the YieldStack rates dashboard tracks the benchmarks daily. This page explains what sits on top of them.
How does the 10-year Treasury feed into DSCR loan pricing?
The 10-year Treasury feeds into DSCR loan pricing because the investors who ultimately buy those loans compare their yield against Treasuries of similar expected life. Lenders then add a spread for credit, leverage and prepayment terms, so the 10-year sets the base and the spread sets the rest of the rate you are quoted.
The mechanism is straightforward. A lender prices a new DSCR loan at a spread over the benchmark that covers its funding cost, expected credit losses, servicing and profit. When the 10-year rises, the same spread produces a higher coupon; when it falls, the coupon falls. Lenders do not reprice every tick, but rate sheets are usually reissued when the benchmark has moved enough to matter.
The short end matters too. On September 16, 2026, the Federal Open Market Committee announced in its policy statement that it "decided to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent." A higher policy rate raises the cost of the warehouse lines that many DSCR lenders use to hold loans before selling them, and that carry cost can widen spreads even on days the 10-year is flat.
That is why every rate figure published before September 17, 2026 should be treated as stale. A DSCR quote from August, or a blog table from early September, was priced against a different policy rate and a different Treasury level. Ask any lender for the date of the rate sheet behind its quote.
Which pricing levers move a DSCR loan rate, and what should you ask?
The pricing levers that move a DSCR loan rate are the benchmark, the lender spread, points, the DSCR tier, the LTV tier, the prepayment term, the loan amount, the property type and the borrower's credit profile, and each one has a specific question worth putting to every lender before you compare quotes side by side.
Table: DSCR loan pricing levers, September 2026
| Pricing lever | How it moves the rate | What to ask |
|---|---|---|
| Benchmark (10-year Treasury) | Sets the floor; the coupon rises and falls with it | Which benchmark and which date is this quote priced against? |
| Lender spread | The lender's margin over the benchmark; varies by lender and quarter | What spread is in this quote, stated separately from the benchmark? |
| Points | Paying points upfront buys the rate down; lender credits push it up | What is the rate at zero points, one point and two points? |
| DSCR tier | Higher coverage usually earns a better tier; sub-1.00 coverage costs the most | Where are your DSCR tier breaks, and which tier is this file in? |
| LTV tier | Lower leverage usually earns a better tier | What is the rate at five and ten points of LTV lower? |
| Prepayment term | A longer penalty period usually lowers the rate | What is the rate with no prepay, a three-year and a five-year step-down? |
| Loan amount | Very small balances often price worse per dollar | Is there a pricing adjustment for this loan size? |
| Property type | Single-family, two-to-four unit, condo and short-term rental can carry different adjustments | Does this property type carry an adjustment? |
| Credit profile | Score tiers and reserves move the price | Which credit tier is applied, and what reserves are required? |
The table is the whole negotiation in one view. A borrower who asks only "what's your rate" gets one number that bundles all nine levers together. A borrower who asks lever by lever can see which lender is cheap on spread but expensive on prepay, and which is the reverse.
How do points trade against the rate on a DSCR loan?
Points trade against the rate on a DSCR loan because each point is one percent of the loan amount paid at closing, and lenders will lower the coupon in exchange for that cash upfront, or raise the coupon and pay a credit when the borrower wants to bring less cash to the table.
On a $400,000 loan, one point is $4,000. Whether buying the rate down makes sense depends on how long you will hold the loan. If a point lowers the monthly payment by a fixed amount, divide the point's cost by that monthly saving to get the break-even month. If you expect to sell or refinance before that month, the point was not worth paying.
The trap is comparing a quote with two points against a quote with none. The two-point quote will almost always show a lower rate, and it is not cheaper unless the hold period justifies it. Ask every lender for the same point structure so the rates can be compared on equal terms.
How do DSCR and LTV tiers change the price?
DSCR and LTV tiers change the price because they are the lender's two main measures of risk on a rental loan: DSCR shows whether the rent covers the debt payment, and LTV shows how much equity absorbs a loss, so better readings on either usually move the file into a cheaper pricing tier.
The debt service coverage ratio is net cash available for debt service divided by the debt payment. In corporate lending, the Corporate Finance Institute notes that "Most commercial banks and equipment finance firms want to see a minimum of 1.25x but strongly prefer something closer to 2x or more." DSCR rental lenders set their own tier breaks, and those breaks are exactly what you should ask about, because a file sitting just below one can often be moved above it.
There are three practical ways to move a DSCR tier. Lower the loan amount, which lowers the payment. Document the rent properly, whether by lease or by an appraiser's market rent estimate, depending on the lender's method. Or choose a longer interest-only period if the lender offers one, which lowers the qualifying payment on some programs. Each has a cost, and the rate saving has to exceed it.
LTV tiers work the same way. Each step down in leverage usually earns a better price. For the full qualification picture, including credit, reserves and property rules, see DSCR loan requirements in 2026. To test how a lower loan amount changes coverage before you ask for quotes, run the numbers in the underwriting calculator.
How do prepayment step-downs affect a DSCR loan rate?
Prepayment step-downs affect a DSCR loan rate because the lender earns its return over time, and a penalty that declines each year, for example five percent in year one falling one point a year to zero, protects that return, so lenders typically price a longer penalty period with a lower rate.
Step-down structures are usually written as a series of percentages, one per year. A five-year step-down of 5-4-3-2-1 means a payoff in year one costs five percent of the balance, year two four percent, and so on, until there is no penalty after year five. A three-year schedule such as 3-2-1 ends sooner and usually costs more in rate.
The right choice follows the business plan, not the rate sheet. If you expect to sell or refinance within two years, a lower rate bought with a five-year penalty can cost far more than it saves. If you plan to hold the property for a decade, the longest penalty may be the cheapest money available. Always ask for the rate at each prepayment option side by side.
What does a DSCR rate build look like in practice?
A DSCR rate build in practice starts from the day's 10-year Treasury, adds an illustrative lender spread, and then applies adjustments for points, tiers and prepayment, and the example below uses round illustrative numbers to show the arithmetic rather than to state what any lender is quoting in September 2026.
Illustrative example only, not a quote:
Benchmark: 10-year Treasury at 4.96 percent (FRED, September 21, 2026) Illustrative lender spread: 2.50 percentage points Illustrative base rate: 7.46 percent Illustrative adjustment for a three-year prepay instead of five-year: plus 0.25 points of rate Illustrative credit for paying one point: minus 0.25 points of rate Illustrative all-in rate: 7.46 percent
Now the coverage side, again illustrative. Take a $400,000 loan at an illustrative 7.50 percent amortizing over 30 years. The principal and interest payment is roughly $2,797 a month. Add illustrative taxes, insurance and association dues of $450, and the qualifying payment is about $3,247. If the property rents for $3,900 a month, the DSCR is about 1.20. Reduce the loan to $370,000 and the principal and interest drops to roughly $2,587, the qualifying payment to about $3,037, and the DSCR rises to about 1.28.
That single change, bringing about $30,000 more equity, can move the file across a tier break and change the spread the lender applies. Whether that trade is worth making depends on the tier breaks of the lenders actually quoting the file, which is why the question in the pricing table matters more than any rate on this page.
For how the lender types that fund these loans differ, see DSCR loans.
How do you get lenders competing for this DSCR loan?
You get lenders competing for a DSCR loan by presenting one complete, consistent file to several lenders at the same time, asking every one of them to price the same point and prepayment structure, and then negotiating lever by lever from the strongest term sheet rather than accepting the first quote you are shown.
That is the work YieldStack does. YieldStack is a commercial mortgage brokerage, not a lender. A borrower completes a 5-minute submit, the deal is presented to lenders whose programs fit it from a catalog of 20,000+ loan programs, and the median offer in under an hour, from an institutional lender, is the starting point for negotiation, not the end of it.
It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Legacy brokers often shop a file to the handful of lenders they already know. The point of a wider comparison is that the spread, the points and the prepayment terms each get priced by more than one lender, so you can see which lever each lender is cheapest on.
Submit your DSCR deal as a guest and compare term sheets
The bottom line
DSCR loan rates in September 2026 start from a 10-year Treasury at 4.96 percent as of September 21, following the September 16 FOMC hike, plus a lender spread that varies by lender. Points, DSCR tier, LTV tier and prepayment term then move the final rate. Ask for each lever separately, compare the same structure across lenders, and treat any rate dated before September 17 as stale. This page is refreshed in place each month.