June 2026 DSCR Rate Update: Post-Ceasefire Relief Is Holding — For Now
June 2026· 818 Capital Partners· 5 min read
The Number
As of early June 2026, baseline DSCR par pricing has settled at 6.125% for domestic investors and 6.750% for foreign national investors on well-qualified profiles — 720+ FICO, 1.25+ DSCR, 75% LTV, 30-year fixed. The full range runs from 6.000% at the aggressive end to 7.875% on thin DSCRs and lower FICO profiles.
That is roughly 10–12 basis points tighter than our April update, with most of the improvement coming from the May ceasefire-driven Treasury move that has now stabilized rather than reversed.
What Is Moving Rates This Month
1. Post-Ceasefire Treasury Consolidation
The 10-year Treasury has settled into a 4.25–4.45% trading band since the ceasefire announcement — down from the 4.75% peak during the conflict, but not revisiting the sub-4.2% levels briefly touched in mid-May. That narrow range is the most stable six-week window the 10-year has seen since Q4 2025.
For DSCR borrowers, this matters directly: stable Treasuries mean stable rate sheets. For the first time since February, we have not seen a mid-week reprice from any of our lender partners. If you locked two weeks ago, you locked at essentially the same price as today. That kind of stability is worth acting on.
2. Non-QM Capital Inflow Is Still Running
The number of active private credit funds competing for DSCR paper at the wholesale level has grown from roughly 12 a year ago to somewhere between 18 and 22 today. More capital competing for the same paper compresses spreads on clean files. We are consistently seeing 25–50 bps of dispersion across the quote stack on identical scenarios — which means if you are getting a single quote from a single lender, you are leaving real money on the table.
3. Fed Holding — Long End Decoupled From Policy Rate
The Fed has signaled one potential cut in Q4 2026 at the earliest. The market had priced in two — the repricing of that expectation added about 15 bps back to the long end in late May. The practical implication: DSCR rates are not tied to the Fed funds rate. They move on the 10-year, which is driven by inflation expectations. A Fed cut alone would not make DSCR loans meaningfully cheaper. What would move them lower is a soft CPI print or a risk-off event that sends capital into Treasuries.
Rate Grid — What We Are Quoting This Month
Based on files we ran this week — 30-year fixed, 75% LTV, no prepay issues:
| FICO Tier | DSCR ≥ 1.25 | DSCR 1.00–1.24 | DSCR 0.75–0.99 |
|---|---|---|---|
| 780+ | 6.000–6.250% | 6.250–6.500% | 6.750–7.125% |
| 740–779 | 6.250–6.500% | 6.500–6.750% | 6.875–7.375% |
| 700–739 | 6.375–6.625% | 6.750–7.000% | 7.375–7.750% |
| 680–699 | 6.625–7.000% | 7.000–7.375% | 7.625–8.000% |
| 660–679 | 7.125–7.500% | 7.500–7.875% | Limited options |
Add 12.5–50 bps for cash-out refi, 2–4 unit, condos, or STR income qualification. Subtract 12.5–25 bps for 5-year+ prepay or loan sizes above $400K.
Where Deals Are Getting Done
Midwest single-family DSCR at 70–75% LTV is the cleanest, fastest execution in the current market — Indianapolis, Columbus, and Kansas City are producing 1.25+ DSCRs at today's rates without heroic rent assumptions, and these files close in 14–18 days. On the multifamily side, bridge-to-DSCR sequences on stabilized Sunbelt assets are moving well: 18-month bridge at 9–9.5% to hit 1.30x coverage, then permanent DSCR or agency takeout at meaningfully better pricing. We are also seeing strong activity in cash-out refis on 2021–2022 vintage rentals — investors who bought early in the cycle have significant appreciation and need capital; the math on a 65–70% LTV cash-out works in markets where rents have held.
