Wholesale Rate-Sheet Transparency · Stephen R. Mannenbach, J.D., MBA · Loan Daddy LLC (NMLS #2827624)
2026 Wholesale DSCR LLPA Pricing-Factor Matrix
Direct Underwriting Answer: Wholesale DSCR mortgage rates are built by starting with the 5-Year US Treasury benchmark plus a base securitization spread, then applying Loan-Level Price Adjustments (LLPAs) across 4 primary dimensions: FICO × LTV, DSCR Coverage Tier, Property & Purpose, and Prepayment Step-Down Term. Every
-0.500 pts LLPA credit reduces your note rate by roughly 12.5 to 18.5 bps.| Pricing Factor | Category | ≤ 65% LTV | 70% LTV | 75% LTV | 80% LTV | Underwriting Note |
|---|---|---|---|---|---|---|
| 760+ FICO (Tier-1 Prime) | FICO × LTV | +0.000 pts | +0.125 pts | +0.375 pts | +0.750 pts | Base wholesale par rate sheet benchmark. |
| 740–759 FICO | FICO × LTV | +0.125 pts | +0.250 pts | +0.500 pts | +0.875 pts | ~5 to 12.5 bps note-rate delta vs. 760+ FICO. |
| 720–739 FICO | FICO × LTV | +0.250 pts | +0.375 pts | +0.750 pts | +1.250 pts | Most common institutional investor credit bucket. |
| 700–719 FICO | FICO × LTV | +0.375 pts | +0.625 pts | +1.000 pts | +1.625 pts | 80% LTV purchase remains eligible on 1.15x+ DSCR. |
| 680–699 FICO | FICO × LTV | +0.625 pts | +1.000 pts | +1.500 pts | N/A (75% Max) | Capped at 75% LTV purchase / 70% LTV cash-out. |
| 660–679 FICO | FICO × LTV | +1.000 pts | +1.500 pts | +2.125 pts | N/A (75% Max) | Requires ≥ 1.10x DSCR and 6 months PITIA reserves. |
| DSCR ≥ 1.25x (High Coverage) | DSCR Tier | -0.250 pts (Credit) | -0.250 pts (Credit) | -0.125 pts (Credit) | +0.000 pts | Unlocks -12.5 to -25 bps note-rate improvement. |
| DSCR 1.00x – 1.24x (Standard) | DSCR Tier | +0.000 pts | +0.000 pts | +0.000 pts | +0.125 pts | Baseline coverage tier across 38+ wholesale conduits. |
| DSCR 0.75x – 0.99x / No-Ratio | DSCR Tier | +0.750 pts | +1.125 pts | +1.625 pts | N/A (75% Max) | +37.5 to +62.5 bps coupon spread; 700+ FICO required. |
| Cash-Out Refinance Purpose | Property & Occupancy | +0.250 pts | +0.375 pts | +0.625 pts | N/A (75% Max) | Max 75% LTV cash-out up to $1.5M–$2.0M loan size. |
| 2–4 Unit Residential Property | Property & Occupancy | +0.250 pts | +0.375 pts | +0.500 pts | +0.750 pts | Evaluated on Form 1025 Small Residential Income Appraisal. |
| Short-Term Rental (AirDNA / Airbnb) | Property & Occupancy | +0.250 pts | +0.375 pts | +0.500 pts | +0.750 pts | Waived by select conduits when 12-mo ledger ≥ 1.35x DSCR. |
| 10-Year Interest-Only Option | Prepayment & Structure | +0.125 pts | +0.250 pts | +0.375 pts | +0.500 pts | 10-yr IO followed by 20-yr principal & interest amortization. |
| 5-Year Step-Down Prepay (5-4-3-2-1) | Prepayment & Structure | -0.500 pts (Credit) | -0.500 pts (Credit) | -0.500 pts (Credit) | -0.375 pts (Credit) | Drops note rate by ~18.5 to 25 bps vs. 3-year prepay. |
| 3-Year Step-Down Prepay (3-2-1) | Prepayment & Structure | +0.000 pts (Base) | +0.000 pts (Base) | +0.000 pts (Base) | +0.000 pts (Base) | Industry benchmark prepayment structure. |
| No Prepayment Penalty (0-Year) | Prepayment & Structure | +1.250 pts | +1.375 pts | +1.500 pts | +1.750 pts | Ideal for short hold horizons or immediate resale. |