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Investment property financing • Simple interactive guide

Compare DSCR loan options.
Find your investment fit.

See estimated monthly payments for 30-year, 40-year and interest-only structures, and learn why credit, rental income, property type and prepayment penalties can change your options.

30 & 40 years10-year interest-onlyRental-based qualificationPrepayment penalty examples

Watch: DSCR loans explained

Understand the options before comparing your numbers.

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1. Enter your investment property numbers

Start with the basics. Your payment comparison updates as you change the numbers.

Purchase price ($)

Down payment (%)

Estimated monthly rental income ($)

Illustrative interest rate (%)Editable example, not a national average or quote

Annual property taxes (% of price)

Annual homeowners insurance (% of price)

Monthly HOA / condo fee ($)

Estimated base loan amount—

Estimated monthly property taxes—

Estimated monthly insurance—

DSCR loans are non-traditional investment property financing and can cost more than conventional owner-occupied mortgages. The rate and program available to you depend on the full scenario—not just the loan amount.

2. Compare four loan structures

These estimates include loan payments plus estimated property taxes, homeowners insurance and HOA dues. The total cost is the same whether you pay taxes and insurance through an escrow account or directly yourself.

Interest-only is not interest-free. With a 30-year loan and 10 years interest-only, the remaining balance is repaid over 20 years. With a 40-year loan and 10 years interest-only, the remaining balance is repaid over 30 years. Monthly payments generally rise when principal repayment begins.

Estimated DSCR shown for educational comparison uses gross monthly rent divided by estimated principal/interest (or interest-only), taxes, insurance, and HOA. Lenders may use different underwriting calculations, including a fully amortizing payment for interest-only loans. Actual rental analysis and eligibility must be confirmed.

3. How can you pay the origination fee?

DSCR loans commonly have an origination fee, on average around 2% of the loan amount as a planning guideline, although fees vary by lender and transaction.

Pay it at closing

Pay the lender or broker origination charge as part of your closing costs. This may be preferable if you want to avoid accepting a higher interest rate to offset that cost.

Ask about financing or lender-credit options

Depending on the loan program, the cost may be financed into the loan balance or offset by lender credit in exchange for a higher interest rate. The rate difference is lender-specific and cannot be assumed in advance.

Fees, financing availability and lender credits depend on actual lender pricing and loan-to-value restrictions. This payment calculator does not automatically include origination or other closing costs.

4. See how a prepayment penalty works

Some DSCR options include penalties for paying off the loan early. A fixed penalty stays at the same percentage during the selected period; a step-down penalty decreases over time. Your actual lender agreement controls.

Penalty structure

Penalty period

Starting / fixed penalty (%)

Pay off or refinance after (months)

Loan structure for example

Estimated balance at payoff

—

Penalty in payoff year

—

Illustrative penalty amount

—

This is a simplified example calculated on the outstanding principal balance. Actual lenders can use different penalty formulas, calendars, exemptions, and restrictions. A no-penalty choice may have different pricing or down-payment requirements and is not automatically available with every loan.

5. Why DSCR rates and down payments vary

Property & credit

Property type matters. A condotel may require 30% or more down with certain lenders; some lenders will not finance condotels.
Credit scores matter. Lower scores may mean higher rates, more down payment, or fewer lender options.

Rental coverage & loan terms

Stronger rental coverage helps. With strong credit, an eligible single-family property and a 1.25 DSCR, some lenders may consider 15% down.
Structure changes pricing. A lower-down-payment option may require a five-year prepayment penalty instead of offering no penalty.

Considering waiving escrows? Some lenders may charge up to an additional 0.25 percentage points on the interest rate for an escrow waiver, while others may not charge an adjustment. Tell us before we shop lenders if you prefer to pay taxes and insurance yourself, so we can prioritize lenders that do not charge for that preference where available. You remain responsible for paying taxes and insurance whether or not they are escrowed.

Loan terms and examples are conditional, not guaranteed. We compare the lender options available for your property, credit profile, loan-to-value ratio, rental analysis, reserves, and desired repayment structure.

Ready to compare actual DSCR lenders?

There's no one-size-fits-all DSCR rate. FHL Mortgages can help compare loan structure, eligible down payment, interest-only terms, prepayment penalties and escrow-waiver preferences across available lenders.

Explore Your Loan Options

Compare DSCR loan options.Find your investment fit.