NPLA Private Lending Market Report: Bridge & DSCR Loan Trends

Median bridge rates have held steady over the last year. DSCR rates show more month-to-month movement as they track treasury yields more closely. DSCR rates have been steadily decreasing with an average rate below 7% for 2026.

30% of bridge loans are priced between 10 and 11%, and nearly three-quarters fall between 9 and 12%. With rates this tightly clustered, lenders are competing on speed, certainty of execution, and points rather than rate. On the DSCR side, 58% of loans land in the 7 to 8% band, leaving even less room for rate-based differentiation.

Bridge points have a median of 2.4% while DSCR is around 1.6%.

In bridge, there's a visible cluster around 10 to 11% / 1 to 2 points, but the spread is wide. Some lenders offer lower rates with higher points, while others do the reverse. In DSCR, most deals cluster tightly around 7 to 8% / 0.5 to 2 points.

Bridge and DSCR growth are happening across different markets. Markets like Little Rock, Des Moines, and Sebring have long been investor markets, but the share of investors taking loans from private lenders are growing. DSCR growth is concentrated in the Midwest and Southeast, with Rockford, Cleveland, Kansas City, and Birmingham leading the way as buy-and-hold investors scale rental portfolios in markets where cap rates still work.

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