Good news for buy-and-hold investors: DSCR rates now start at 5.75%. And to keep portfolios resilient, we’ve raised our minimum DSCR to 1.00. Why? In our experience, most of the problem loans come from negative coverage (DSCR < 1.00). Setting the floor at 1.00 helps investors sleep better: payments are covered by rents, even when the market gets bumpy.

Better yet, if you locked in a higher coupon in the past 1–2 years, we can refi or cash-out refi, offer rate buydowns, and roll eligible points and closing costs into the new loan—so you can lower your rate without writing a big check at closing.

Why this matters (fast math)

Lower rates strengthen DSCR and free monthly cash flow.

• $300,000 loan: 7.50% → 5.75% saves about $347/mo

• $400,000 loan: 7.50% → 5.75% saves about $463/mo

• $500,000 loan: 7.50% → 5.75% saves about $578/mo
  (P&I only; taxes/insurance/HOA vary.)

Rate buydown: bigger drop, faster break-even

You can pay points to permanently buy down the rate—and we’ll model the break-even so it’s a smart move, not just a shiny one.

Example (bigger drop): On $350,000, cutting 7.50% → 5.75% saves about $405/mo.
If the buydown costs ~1.25 points ($4,375), your break-even is ~11 months.
Holding longer than a year? The buydown can pay for itself quickly—and improve DSCR.

Pro tip: With a refi or cash-out refi, we can often roll eligible points & closing costs into the loan, subject to LTV/DSCR and program rules. That means lowering your payment without draining cash.

Refi paths we’re funding right now

• Rate/term refi: Trade a high 2023–2024 rate for 5.75% starting and a 1.00+ DSCR target.

• Cash-out refi: Pull equity for improvements/reserves/acquisitions and lower your rate.

• Buydown refi: Roll in points to push DSCR even higher if your hold horizon clears the break-even.

Our DSCR program (1–8 units)

• Min DSCR: 1.00 (1.15+ recommended for best pricing & cushion)

• Min FICO: 660 (680+ recommended)

• Max LTV: 80% (SFR), 75% (2–8 units)

• Foreign Nationals: Max 65% LTV

• Rates: start at 5.75%

• Rate types: 30-yr fixed, 5/1 & 7/1 ARM, up to 10 yrs Interest-Only

• Minimum loan: $100,000 (~$100k/unit guidance for multis)

What to send for a same-day soft quote

• Property address & unit mix

• Current/market rent(s) + taxes/insurance/HOA

• Your target LTV (rate/term or cash-out)

• FICO band and any recent upgrades

• Hold period (so we can test buydown break-even)

We’ll return side-by-side DSCR and payment scenarios at 5.75% starting and with optional buydowns, plus roll-in options for fees—so you can choose the most profitable path and keep DSCR ≥ 1.00 with confidence.

FAQs

Why raise the minimum DSCR to 1.00?
Deals under 1.00 DSCR rely on outside cash to cover payments. Our investors do better—and default risk falls—when rents cover debt service from day one.

Can I keep (or add) Interest-Only?
Often yes—I/O up to 10 years is available on many options, subject to credit and LTV.

Do buydowns raise appraised value?
No—appraisal is about market value/NOI, not interest expense. But buydowns improve payments and DSCR, which can help proceeds and monthly cash flow.

Ready to lower your rate and boost coverage?

Reply to this email or start at LoanFunders.com. We’ll show you 5.75% starting scenarios, buydown math, and rolled-in fee options—so you can lock DSCR ≥ 1.00, protect your cash, and grow the portfolio.

Disclaimer: Rates, terms, and guidelines subject to change and approval. Not a commitment to lend. Pricing varies by credit, DSCR, LTV, documentation, property, and market conditions.