How Much Down Payment Do You Need for a DSCR Loan?
Plan on 15% to 25% of the purchase price, depending on the lender and your credit score. The published DSCR programs we read set the down payment through a maximum loan-to-value: one lends up to 80%, one up to 75% at a 680 credit score and up to 85% at 720, one lists a 15% minimum down payment, and one goes up to 80% on its single-family rental loan and 75% on its short-term rental loan.
Last updated October 21, 2026How loan-to-value sets the down payment
Loan-to-value is the loan divided by the property's value. A lender that caps a purchase at 80% loan-to-value is asking for at least 20% down; at 75%, it's 25% down; at 85%, 15% down. On a hypothetical $300,000 rental, that's $60,000, $75,000 or $45,000 before closing costs.
What can lower the amount
- Your credit score: one lender's published limits rise from 75% loan-to-value at a 680 score to 85% at 720.
- The lender: published caps differ, so the same property can need a different down payment at different lenders.
Why putting more down can help
A larger down payment means a smaller loan and a smaller payment. A DSCR loan compares the property's rent with that payment, so the same rent covers a smaller payment more easily and the ratio goes up. That can matter if the rent is close to the payment.
What to ask a lender
- What's your maximum loan-to-value on a purchase, and does it depend on my credit score?
- Is it different for a short-term rental or a 2-to-4-unit property?
- How many months of reserves do you want on top of the down payment?
| Range in the programs we read | 15% to 25% down |
|---|---|
| Published loan-to-value caps | 75%, 80% and 85%, by lender and credit score |
| Credit score effect | 75% at 680 and 85% at 720 at one lender |
| Lowest published down payment | 15% at one lender |
| No money down | Not offered by the programs we read |
Related questions
Sources
- https://www.kiavi.com/loans/dscr
- https://angeloakms.com/programs/investor-cash-flow-mortgage-program/
- https://www.griffinfunding.com/non-qm-mortgages/dscr-loans/
- https://limaone.com/rental/detail/
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.