Are DSCR Loans Fixed-Rate?

Last updated: July 22, 2025

The rising popularity of DSCR (Debt Service Coverage Ratio) loans among real estate investors has transformed how rental property acquisitions are financed, especially for those seeking flexibility beyond traditional income documentation. As an alternative to conventional lending, DSCR loans focus on the cash flow generated by the investment property rather than the borrower's personal income, making them a powerful tool for both new and seasoned investors.

But one question consistently surfaces when evaluating DSCR loan options:
Are DSCR loans fixed-rate?

This is more than a technical inquiry; it’s a foundational decision that directly affects cash flow, long-term ROI, and risk exposure. A fixed-rate loan offers stability in monthly payments and shields investors from interest rate volatility. On the other hand, adjustable-rate options often come with lower introductory rates and greater flexibility for short-term strategies, such as BRRRR or flipping.

As a lending expert at OfferMarket, I frequently advise clients navigating this choice. The truth is, DSCR loans can be fixed or adjustable, and which one is right for you depends on your investment horizon, risk tolerance, and cash flow goals. With rising interest rates and unpredictable macroeconomic trends in 2025, the structure of your loan could be the difference between a strong-performing portfolio and a cash flow crunch.