How Much Down Payment Do You Need for a DSCR Loan?
Down payment is one of the first questions investors ask about DSCR loans. There's no single universal number, but there are clear patterns.
Typical range
Most DSCR purchase loans require a down payment in the 20–25% range. Some programs allow as little as 15% for exceptionally strong borrower and property profiles, while others require 25–30% for lower-DSCR or higher-risk scenarios.
What moves your down payment requirement
Your credit score, the property's DSCR ratio, property type (short-term rentals and certain multifamily configurations sometimes require more down), and the specific lender's guidelines all play a role.
Cash-out refinances
If you're refinancing to pull cash out, the amount available depends on your loan-to-value limit and remaining equity — typically capped somewhat lower than the max LTV available on a purchase.
Reserve requirements
Beyond the down payment itself, many lenders require reserves — extra cash equal to several months of mortgage payments — to be verified in your accounts at closing.
Down payment requirements are set by each lender, not by The DSCR Resource Center. Get matched with a lender for numbers specific to your deal.