The DSCR loan market continues to evolve rapidly. Here's what you need to know heading into Q1 2025.

Rate Environment

DSCR rates have stabilized in the 7-8% range for most borrowers, with well-qualified borrowers seeing rates as low as 6.75%. The Fed's pause on rate hikes has helped bring predictability back to the market.

Lending Trends

  • LTV expansion: More lenders offering 80% LTV for purchases
  • Cash-out increases: Some lenders now allowing 75% LTV cash-out refinances
  • Short-term rentals: Growing acceptance of STR income for DSCR calculations

What This Means for Affiliates

With improved terms and growing investor awareness, Q1 2025 presents excellent opportunities for DSCR referrals. Focus on investors looking to refinance out of high-rate conventional loans or expand their portfolios.