How to Get Better DSCR Loan Interest Rates


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How our client raised their credit score to lower their DSCR loan interest rates by 30%.

A client came to us who was quoted by another company for a DSCR loan. They offered him:

  • 9% interest rate
  • 3 origination points
  • On a cash-out, 70% refinance of a remodeled, rented property.

Doesn’t that seem high?

His main hurdle was that his credit score had dipped during the remodel of this project.

He started with a score of 720 and a credit limit of $35,000. But to get the property rent-ready, he used $30,000 of this credit. This caused high credit usage – which dragged his credit score down to a 679.

This plummet in score cost him a couple of points in interest and origination, resulting in a much more costly refinance than he was prepared for.

Raising Your Credit Score to Lower DSCR Loan Interest Rates

To get his score back up, we helped him with a usage loan.

This means:

  • We gave him a private loan.
  • Which he used to pay off his credit cards.
  • Paying off the credit cards lowered his usage.
  • Then the lower usage raised his credit score.

When usage is the reason for your low credit score, a small short-term private loan like this can be a solution.

In our client’s case, this higher credit score refreshed the refinance DSCR. They quoted him to a 7.625% interest rate, with a half-point origination, on a 30-year fixed loan.

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