How much down do you need for a DSCR loan?
Last updated 2026-07-22
Typically 20 to 25 percent, with a realistic range of 15 to 30. The best current tier allows 15 percent down (85 percent LTV) on loans up to $1M with 720+ credit and full rent coverage. Weaker coverage, lower credit, cash-out, and very large loans all push the requirement up.
What actually sets the number
Four dials move a DSCR down payment. Credit: the strongest tiers reserve their best leverage for roughly 720 and above, while 640 to 680 credit typically lands at 25 to 30 percent down. Coverage: full rent coverage (1.0+) gets top leverage; ratios below 1.0 give up 5 to 10 points of LTV. Transaction type: cash-out refinances cap lower than purchases, commonly around 75 percent. Loan size: the highest-leverage tiers cap near $1M, and larger loans step down.
Stack the dials favorably (strong credit, full coverage, a purchase under $1M) and 15 percent down is available today. Stack them against you and plan on 30.
Reserves: the down payment's quiet sibling
Lenders also require reserves: months of the full payment held in liquid assets after closing, commonly 3 to 12 months depending on the program and coverage. A 20 percent down payment with zero dollars left is not an approvable file. Budget the reserve requirement alongside the down payment, plus roughly 2 to 4 percent of price for closing costs.
One useful wrinkle on some low-ratio programs: reserves can come from loan proceeds on a cash-out, which helps investors who are property-rich and cash-thin.
How a seller second can shrink the cash in
On the exchange, sellers open to carrying paper enable a hybrid: an institutional DSCR first plus a seller-carried second. A 70 percent first with a 15 percent seller second puts the buyer's cash near 15 percent of price plus costs, on a deal that would otherwise need 25 to 30 down. The catch is program-specific: some DSCR programs allow secondary financing behind them at a capped combined LTV and some prohibit it, so the stack has to be confirmed against the actual program before anyone signs.
This is exactly the structure question the Deal Desk answers in writing within one business day.
Frequently asked questions
Can you put 15% down on a DSCR loan?
Yes, on the best current tier: loans up to $1M with 720+ credit and full rent coverage allow 85 percent LTV. Most files land at 20 to 25 percent down.
Do DSCR loans have PMI?
No. DSCR programs price leverage into the loan itself rather than adding mortgage insurance, which is one reason their leverage caps sit below conventional owner-occupant loans.
How much are reserves on a DSCR loan?
Commonly 3 to 12 months of the full payment in liquid assets after closing, varying by program and coverage. Thinner coverage generally means more reserves.
Can the down payment be borrowed?
A seller-carried second behind the first can reduce cash in where the program allows secondary financing at a capped combined LTV. Unsecured borrowed funds generally cannot be used. Confirm the exact stack with a licensed professional before contracting.
Educational content, not legal, tax, or investment advice, and not an offer to lend. Talk to a licensed professional about your situation; the Deal Desk is a good place to start.