How much down payment do I need for a DSCR loan?
Typically 20–25% on a purchase. Best pricing at 25%+. A few programs allow 15% with strong DSCR and 740+ FICO.
DSCR loan down payment requirements scale with FICO and DSCR ratio. Standard pricing tier (760+ FICO, 1.25+ DSCR): 20% down (80% LTV) is typical, with 75% LTV (25% down) getting the best pricing. Mid-tier (700-740 FICO): expect 25% down minimum at most programs. Lower FICO (660-680): 30% down minimum, sometimes 35%. Some programs reach 85% LTV (15% down) at 740+ FICO and 1.25+ DSCR, but pricing is meaningfully higher. Cash-out refinance maxes typically run 5% lower than purchase max - so 75% LTV cash-out vs. 80% LTV purchase. Foreign national borrowers see LTV caps 5–10% lower (typically 70-75% max). The best execution path: target 25-30% down to lock in the lowest available rate, especially at sub-740 FICO. Below that, the rate premium often exceeds what the higher leverage saves in monthly payment.
People also ask
Can I use gift funds for a DSCR loan down payment?
Most DSCR programs do NOT accept gift funds (these are business-purpose loans, not consumer). A few specialty programs allow gift funds with documented source.
Can I use a HELOC on another property for the down payment?
Yes. As long as the funds are seasoned in your account 30–60 days and sourced documentation is provided, HELOC proceeds work as down payment.
Got a specific scenario?
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No-Ratio DSCR
No-ratio DSCR investment property loans. Qualify even if rent does not cover the mortgage payment. Higher down payment in exchange.