What Drives the Rate on Your Private Loan Quote

Two investors can send a lender similar-looking deals and get different quotes. Private lenders price risk, and several parts of your deal and your profile go into that read at once. At RSC Private Lending, final pricing depends on experience, credit, leverage and location. Here is how each one moves the number, and which parts you control.

The deal: leverage and property

Leverage is usually the biggest lever. It's measured as loan to cost (LTC) on rehab and construction loans and loan to value (LTV) on bridge and rental loans. The more of the deal you fund yourself, the more cushion the lender has if things go wrong, and the better the pricing tends to be. On RSC's DSCR Rental program, rates start at 6.750% for the strongest files and step up as LTV rises toward the 80% maximum.

The property matters too. A standard single-family house in an active market is the easiest to price. Small multifamily, condos with project issues, rural locations, unusual layouts and very large or very small loan amounts can all shift the quote.

Loan purpose plays in as well, since lenders often price purchases, rate-and-term refinances and cash-outs differently.

The borrower: experience and credit

Experience counts because a borrower who has finished similar projects is more likely to finish this one on time and on budget. RSC's Fix & Flip pricing shows how much: on a light rehab with 760+ FICO, up to 80% of purchase and 70% of ARV, the published rate runs from 11.250% with no completed projects to 8.000% with 12 or more. Keep a simple track record: address, purchase date and price, rehab budget, sale or refinance date and price.

Credit is about more than the score. Lenders look at payment history, recent late payments and the depth of your file. The score still moves price. On RSC's Bridge rates for a purchase at up to 60% LTV by a borrower with 12+ completed projects, 760+ FICO prices at 8.250% and 680 to 699 at 9.250%.

The structure: points versus rate

Points are upfront fees, each equal to 1% of the loan amount. Many lenders let you trade between them: pay more points for a lower rate, or fewer points for a higher rate. Which is cheaper depends on how long you'll hold the loan.

Example, round numbers only. On a $400,000 flip loan held 6 months:

• Option A: 2 points ($8,000) and 10% interest (about $20,000 over 6 months). Total: about $28,000.
• Option B: 1 point ($4,000) and 11% interest (about $22,000). Total: about $26,000.

For this short hold, the higher rate with fewer points costs less. At 12 months the two cost about the same, and past that, Option A wins. Compare total cost over your realistic timeline, not just the rate.

What this means for you

You can't change the market, but you can influence your quote. Bring more equity when it makes sense, document your track record, clean up your credit before you need it, and ask to see points and rate side by side. A complete scenario gets a far more accurate quote than any single factor can predict.

Want to see where your deal lands? Send your scenario to RSC Private Lending for a term sheet in 24 hours. Rates and terms may change without notice, and all loans are subject to underwriting and credit approval.