DSCR Loan Pennsylvania 2026: Rates by Region From 8,341 Loans

Pennsylvania is seven DSCR markets, not one

A statewide median hides the differences that matter to a buyer in Erie or Easton. The table splits the 8,341 loans into seven areas that we drew from county codes (our grouping, listed in the first column), so each row is a set of whole counties. The federal file gives the county and the census tract, not the city, so Philadelphia County is the only row that is a city; it is also a county, which is why the county figure is the Philadelphia figure.

Pennsylvania DSCR-type loans in 2025 by area (HMDA, our grouping)

Read across the rows and three different markets appear. Philadelphia and its suburbs are the high-balance, refinance-heavy part of the state: median loans of $185,000 and $205,000, and cash-out refinances at 53.1% and 45% of loans, against 28.1% in the counties outside our six areas. The Northeast is the multi-unit part: half the loans are on 2-4 unit properties, and median loans are $185,000 on cheaper property than the Philadelphia suburbs. Central and “rest of Pennsylvania” are entity markets, with 60.1% and 69.3% of loans going to LLCs, corporations or trusts, against 43.2% in Philadelphia. The last column counts short-term loans (36 months or less, the bridge and fix-and-flip type) for every 100 DSCR-type loans in the same area; it is 39 in Philadelphia County and 16 in the Central counties. Lehigh Valley is the odd one on size: only 0.5% of its loans were under $100,000, against 19.8% in the Pittsburgh area and 19.9% in the rest of the state (our arithmetic). Every area's median fell between 2024 and 2025, by 0.215 to 0.375 points (our arithmetic).

Philadelphia County: a refinance market with no lender in charge

Philadelphia County had 2,484 DSCR-type loans in 2025, up 52.2% from 1,632, at a 7.5% median (7.875% in 2024) and a $185,000 median loan on a $265,000 median property value (our arithmetic). Three features separate it from the rest of the state.

• Cash-out refinances are the majority: 53.1% of loans, against 43.1% statewide and 33.4% in Ohio. Many Philadelphia borrowers are pulling equity from property they already own, not buying.
• The bridge market is large and one lender dominates it. There were 969 short-term loans in the county, and KIAVI FUNDING, INC. made 414 of them (42.7%), ahead of Loan Funder LLC (137), Crowdcopia LLC (124) and RF Renovo Management Company, LLC (85). A rehab loan that is later refinanced into a 30-year DSCR loan would show up in both counts; HMDA cannot link the two.
• No lender leads the long-term loans. Constructive Loans LLC made 198 (8.0%), BPL MORTGAGE, LLC 197, VELOCITY COMMERCIAL CAPITAL LLC 196, KIAVI FUNDING, INC. 195 and United Wholesale Mortgage 151 (6.1%). In the Pittsburgh area the same filing shows BPL MORTGAGE, LLC at 207 of 1,280 loans (16.2%).

Who lends where: top DSCR-type lenders in three areas, 2025 (HMDA)

A second Philadelphia fact is about where the property sits. Of the 2,376 Philadelphia County loans with a tract income reported, 1,756 (73.9%) were in census tracts whose median family income was under 80% of the metro median, and 68.7% were in tracts where the minority population was 80% or more (2,482 loans reporting the field). The loans were spread over 330 tracts, and the 10 busiest tracts held 13.2%. Allegheny County is different: 53.8% in tracts under 80% of the metro median and 4.2% in tracts with a minority population of 80% or more. The statewide share in tracts under 80% was 60.1% against 67.6% in Ohio (our arithmetic). These are facts about the neighborhood of the property, not about the borrower, and they say where the demand is: older, lower-priced housing where a $185,000 loan buys a rental. They also mean the reader should compare lenders by how they price small, older, 2-4 unit properties, not by the national average.

The Northeast: Lackawanna and Luzerne are 2-4 unit counties

The three Northeast counties made 866 loans in 2025, 10.4% of the state, and 50.8% of them were on 2-4 unit properties, against 29.8% statewide. The split by county is wider than the area total: Lackawanna County (Scranton) was 74.7% 2-4 units on 288 loans, Luzerne County (Wilkes-Barre) 56.6% on 378 loans, and Monroe County only 5.5% on 200. Lackawanna's loan count grew 14.3% from 252, the slowest of the twelve counties in the county table below, and its median rate fell from 8.205% to 7.625%. CHAMPIONS FUNDING, LLC, which made 23 Pennsylvania DSCR-type loans in 2024, made 271 in 2025, and led the Northeast with 80. Of the loans in the whole state, 1,541 were on 2-unit properties, 627 on 3-unit and 315 on 4-unit properties (our arithmetic).

Where growth came from: the counties

Top 12 Pennsylvania counties by 2025 DSCR-type loans (HMDA)

The big counties grew by half, but the growth leaders were the ring around them. Bucks County more than doubled (71 to 150 loans), Berks County (Reading) went from 202 to 402, Montgomery County grew 87.4% and Lehigh County 86%. York was the cheapest county of the twelve at a 7.15% median, and 76.4% of its loans went to entities, the highest of the twelve. Only 58 of Pennsylvania's 67 counties had a DSCR-type loan at all in 2025, and 24 had fewer than 10 (our arithmetic), so outside these counties a borrower is relying on lenders that rarely appear in the public record there.

Who makes Pennsylvania DSCR loans

Top 10 DSCR-type lenders in Pennsylvania by 2025 loans (names as filed with HMDA)

Kiavi (733), BPL Mortgage (729) and United Wholesale Mortgage (711) are within 22 loans of each other, so Pennsylvania has no leading lender: the top 10 made 56.4% of the 8,341 loans and 133 lenders filed at least one (123 in 2024). Ohio's top 10 made 64.9%. The two names that grew fastest are CV3 Financial Services, LLC (0 loans in 2024, 474 in 2025) and CHAMPIONS FUNDING, LLC (23 to 271). Two top-10 lenders, Constructive Loans LLC and CHAMPIONS FUNDING, LLC, take every application through brokers or correspondents, and RCN Capital, LLC and RF Renovo Management Company, LLC take every one directly. Kiavi's median of 7.25% is 0.625 points under United Wholesale Mortgage's, which on the $165,000 median loan is $70.77 a month (our arithmetic).

The lenders investors search for by name

Lenders investors search for by name: their Pennsylvania HMDA records

Kiavi is both the first long-term lender and the main bridge lender: its 1,041 short-term loans in 2025 (777 in 2024) are 39.3% of the state's 2,646 (our arithmetic), at a 10.95% median. Visio's lender entity halved its Pennsylvania loan count (226 to 142) and Lima One's fell from 164 to 79. Griffin Funding shows only 6, which reflects how a loan is listed under the institution that reported it, not necessarily how many borrowers it served (see our Griffin Funding review). Our Kiavi review and Visio vs Velocity vs Kiavi compare the lenders' published terms, and the best DSCR lenders ranks them nationally.

The Velocity effect: one lender explains the 10% tail

VELOCITY COMMERCIAL CAPITAL LLC filed 434 Pennsylvania DSCR-type loans in 2025 (272 in 2024) at a median note rate of 9.99%, with 196 of them in Philadelphia County and 100 in the Pittsburgh area. It accounts for 207 of the 231 DSCR-type loans in the state with a rate above 10%, none of its loans has a balloon payment, and 100% of them came through brokers. Take it out and the state median is unchanged at 7.5%, the 75th percentile is 7.9% and the 90th is 8.499% (with it, 8.75%). A borrower who sees “DSCR rates” of 10% in Philadelphia is looking at one lender's product, not a market price; see our Velocity Financial review and the national ranking of DSCR lenders by loans.

What the 2025 rate spread costs on a Pennsylvania loan

Monthly principal and interest on a $165,000 loan, 30-year fixed, at each Pennsylvania 2025 rate (our arithmetic)

The 25th-to-75th percentile gap is $99.08 a month, $1,188.91 a year. The DSCR median sits $42.06 a month ($505 a year) above the 7.125% median for the 2,562 conventional investor loans qualified on income; those borrowers documented income, so this compares two markets, not two quotes for one file. The premium was 0.563 points in 2024 and 0.375 in 2025. By loan size, 885 loans (10.6%) were under $100,000 at a 7.95% median; 3,224 loans under $150,000 had a 7.75% median, 3,887 loans of $150,000 to $299,999 had 7.5%, and 863 loans of $300,000 to $499,999 had 7.375% (our arithmetic). In Pennsylvania, direct applications priced a little lower than broker loans (7.45% on 3,641 loans against 7.625% on 4,700), and entity borrowers lower than individuals (7.45% against 7.75%).

Pennsylvania DSCR-type loans, 2024 vs 2025

Pennsylvania DSCR-type loans in HMDA, 2024 vs 2025

The median loan did not move ($165,000 in both years) while property values rose from $225,000 to $235,000, so leverage on the typical file did not change either (75%). The entity share fell from 54.9% to 48.8% as the volume shifted toward Philadelphia and its suburbs, where entities are a smaller share.

How we found the loans, and what HMDA cannot tell you

HMDA has no DSCR field, so we select on fields that do exist. Regulation C's commentary says a business-purpose loan “is a covered loan only if it is a home improvement loan under § 1003.2(i), a home purchase loan under § 1003.2(j), or a refinancing under § 1003.2(p) and no other exclusion applies.” A lender that does not use the borrower's debt-to-income ratio reports it as not applicable, “since no debt-to-income ratio was relied on in connection with the credit decision.” Our DSCR-type loan is therefore: originated, conventional, first-lien, closed-end, not a reverse mortgage; investment property of 1 to 4 units; business or commercial purpose; debt-to-income NA; and a term of 360 months or more. A term of 36 months or less is counted separately as “short-term.” In Pennsylvania in 2025 there were 233,522 conventional originations; 27,041 were on investment property, 20,584 of those for a business purpose and 15,821 of those with DTI reported as NA. The 8,341 loans are the 30-year-or-longer part of that last group.

The limits are real. Other no-DTI business loans fall in the group, and so do loans to LLCs and trusts; the file shows the note rate, not points, fees or prepayment penalties (the prepayment term is NA on 100% of these loans); there is no credit score, rent or DSCR; loan amounts and values are rounded, since the FFIEC field list says property values are “Rounded to the midpoint of the nearest $10,000 interval for which the reported value falls”; lenders under the reporting thresholds are missing; and the 2024 file (one-year dataset, downloaded October 22, 2026) and the 2025 file (snapshot dataset, downloaded October 6, 2026) are different vintages. For the product itself see what a DSCR loan is, rates by borrower tier and lender requirements.

Pennsylvania next to Ohio

Pennsylvania and Ohio, same definition, 2025 (our arithmetic)

Pennsylvania has a lower median rate, loans $40,000 larger at the median, 9.7 points more cash-out refinances and a less concentrated lender list than Ohio, whose own record is on our Ohio DSCR loan page; Michigan's is on the Michigan page.

Three Pennsylvania rules an investor meets

1. What counts as a “business loan” (10 Pa. Code § 7.2). The Department of Banking regulation that implements the state's interest and mortgage act defines business loans as “extensions of credit where the funds are to be utilized in a business enterprise” and adds two conditions: the borrower “exercises actual control over the managerial decisions of the enterprise in which the funds are to be utilized,” and the borrower “signs an affidavit under penalty of perjury setting forth the intended use of proceeds.” A business-purpose affidavit at a DSCR closing serves a similar purpose; whether a given affidavit meets this definition is a question for a Pennsylvania attorney. The same section defines a “residential mortgage” for sections 403 and 404 of the act as an obligation of “$50,000 or less” secured by real property with “two or fewer residential units,” so a small loan on a one- or two-unit building falls inside that definition; what sections 403 and 404 then require is also a question for an attorney. 885 Pennsylvania DSCR-type loans (10.6%) were under $100,000, and 7,399 (88.7%) were on one- or two-unit properties (our arithmetic), so the size and unit tests matter to a share of this market. We read the regulation (10 Pa. Code § 7.2), not the statute: the General Assembly's site refused our connection on October 22, 2026, so any statutory ceiling or exemption should be checked with a Pennsylvania attorney.

2. Realty transfer tax, in Philadelphia and for LLC transfers. The City of Philadelphia lists its current Realty Transfer Tax as 3.578% (City) plus 1% (Commonwealth), 4.578% in total, on the sale price or assessed value plus any assumed debt, payable within 30 days after receipt by the Department of Records. On a $185,000 purchase that is $8,469.30 (our arithmetic), usually split between buyer and seller but collectable in full from either. The same city page applies the tax to “entity transfers” and to transfers of 75% or more of a real estate company, and state rules say a real estate company becomes “acquired” when changes “within the preceding 3 years” transfer “90% or more of the total capital and profits ownership interest” (61 Pa. Code § 91.202). Bringing partners into the LLC that owns the building can therefore be a taxable event. One inconsistency: the same city page lists 3.578% as the City's share in its rates section and 3.278% in its mailing instructions, so confirm the rate at recording.

3. Philadelphia's rental license (L&I). Renting a unit in the city needs a Rental License at $69 per unit, with a maximum fee of $27,830 and no fee for owner-occupied units. The page says licenses “are not transferrable,” so a buyer must close the old license and apply for a new one; an owner who lives outside Philadelphia must name a managing agent with a Philadelphia mailing address; for company-owned properties the application needs the name and address of “any person with more than 49% ownership interest”; and any property built before March 1978 “must be certified as lead-free or lead-safe.” Renewal requires being current on City taxes and fines and having no outstanding L&I violations. Budget these costs and the timing before you rely on the rent in a DSCR calculation. Our Pennsylvania inheritance tax page covers the other Pennsylvania tax that follows rental property.

What a Pennsylvania investor can do with this

1. Place any quote on your own area, not the state. A note rate at or below 7.125% was in the cheapest quarter of Pennsylvania DSCR-type loans in 2025; at or above 8% it was in the costliest. Rates move, so treat 2025 as a range and get today's quote.
2. In Philadelphia, ask for three lenders, not one. No lender has more than 8.0% of the county's DSCR-type loans, and the four largest sit within three loans of each other.
3. Know which lender you are looking at. A 10% quote from a lender whose Pennsylvania median is 9.99% is that lender's product (see the Velocity section), not the market.
4. Buying a 2-4 unit in the Northeast? Half the loans there are on such properties, and the lender list differs from Pittsburgh's (CHAMPIONS FUNDING, LLC and BPL Mortgage lead). Ask each lender how it counts rent on a multi-unit building.
5. Price the Philadelphia fixed costs first. Transfer tax of 4.578%, the rental license and the lead certificate come before the loan's own fees; our down payment page shows what HMDA says about leverage.
6. Check whether you qualify conventionally. The conventional investor median was 7.125% against 7.5%. Our DSCR vs conventional comparison, DSCR calculator and DSCR loan LLC page help you see which structure your property clears.

FAQ

Loan-level data: FFIEC/CFPB HMDA Data Browser, Pennsylvania originated conventional loans for 2024 (downloaded October 22, 2026) and 2025 (downloaded October 6, 2026), plus the Ohio 2025 file used for the comparison (request URLs in the data file; scripts and extracts in sources/hmda/); definitions from the Regulation C commentary and the FFIEC HMDA field list; lender names from the FFIEC filer lists; county names from the Census Bureau 2020 county list; the regional groupings, the Northeast and Pittsburgh areas and every percentile, median, share and payment figure are our arithmetic; 10 Pa. Code § 7.2, 61 Pa. Code §§ 91.193 and 91.202 and the Department of Revenue's realty transfer tax page as published by the Commonwealth; the Realty Transfer Tax and Rental License pages of the City of Philadelphia, read October 22, 2026. This is analysis of public documents, not investment, legal or tax advice, and not a loan offer.