What Credit Score Do You Need for a DSCR Loan, and What Are the Closing Costs?
Published minimums run from 620 to 700, depending on the lender and the program. One lender lists 620 or higher, one lists 680 for up to 75% loan-to-value and 720 for up to 85%, and one lists 700 for its short-term rental loan. None of the lender pages we read publishes its fees, so get the closing costs in writing from each lender before you choose.
Last updated October 21, 2026Credit score
Your score can affect both whether you qualify and how much you can borrow. At one lender, a 680 score allows up to 75% loan-to-value and a 720 score allows up to 85%, which means a smaller down payment with the higher score. Another lender's DSCR page doesn't publish a minimum at all, so ask.
What goes into closing costs
The lender pages we read don't list fee amounts, but they point to the pieces:
- The appraisal, which one lender requires for both the value and the rent.
- The lender's own charges, such as points and fees, which one lender says it puts in writing upfront.
- The prepayment penalty, which isn't a closing cost but belongs in the comparison.
Ask about title, insurance and recording charges too, and get an itemized list from each lender.
Getting the terms in writing
A DSCR loan is business-purpose credit, and Regulation Z, the federal truth-in-lending rule, doesn't apply to credit made primarily for a business purpose. That means the standard consumer disclosures aren't required. One lender says it puts the rate, points, fees and any prepayment penalty in writing upfront, on a loan estimate or a term sheet depending on the file. Ask every lender for the same, so you can compare them line by line.
What to ask a lender
- What's your minimum credit score, and how does it change the loan-to-value?
- What are your points, origination and underwriting fees?
- What does the appraisal cost, and who orders it?
- Can you give me a term sheet with every fee and the prepayment penalty?
| Published credit minimums | 620, 680 and 700 at three lenders |
|---|---|
| Higher score | Up to 85% loan-to-value at 720 versus 75% at 680, at one lender |
| Fee amounts | Not published on the lender pages we read |
| Disclosures | Regulation Z doesn't apply to business-purpose credit; ask for a term sheet |
| Appraisal | Required for value and rent at one lender |
Related questions
Sources
- https://www.ecfr.gov/current/title-12/chapter-X/part-1026/subpart-A/section-1026.3
- https://www.griffinfunding.com/non-qm-mortgages/dscr-loans/
- https://angeloakms.com/programs/investor-cash-flow-mortgage-program/
- https://limaone.com/rental/detail/
- https://www.kiavi.com/loans/dscr
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.