How much down payment do I need for a DSCR loan?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
DSCR loans typically require 20% to 25% down, with stronger down payments and credit unlocking better rates. A lower DSCR ratio may push the requirement toward 25% or more.
You'll also need a few months of reserves. We'll match your down payment, credit, and the property's cash flow to the best available DSCR terms.
The usual range
DSCR loans typically require 20% to 25% down, though a strong DSCR and credit score can sometimes get you to 15%. More down usually means a better rate and easier approval.
The exact figure depends on the property's cash flow, your credit, and whether it is a short-term or long-term rental.
Balancing down and rate
Putting more down lowers your payment, which raises your DSCR and can unlock a lower rate. It is a lever you can use to make the deal work.
We will show you how different down payments change the numbers. Reach out and we will find the sweet spot for your investment.