DSCR Loans have better rates than Conventional?

[Joshua Ricker]

The other day I received a call from my lender stating she was doing side by side comparisons of a conventional to DSCR loan. For the first time I have heard the DSCR loan had a better rate with lower points than the conventional loan.

For reference the DSCR loan Rate: 8.5% 2 origination points

                             Conventional Rate: 9.5% 3 origination points

Is anyone else seeing this where they are at?  This was used to compared on a client of mine so its using the same info for both just an FYI

[Robin Simon]

There is always going to be a lot of nuance to comparing "rates" since there are a lot of factors when comparing rates for a specific scenario so comparing can sometimes be apples to oranges. There are certainly cases where DSCR Loans might have a lower rate - particularly if you load up on prepayment penalties