Why is it usually 25%?
Ask how much down payment for a DSCR loan and most lenders answer the other way around. They talk about how much of the price they will cover, and most DSCR programs stop at three quarters of it. The rest is your down payment.
Across the DSCR programs we use, the most common maximum loan is 75% of the price, so 25% down. Several programs go to 80% when your credit score is around 700. A few reach 85% at 700 to 740 and above, depending on the program.
Checked by underwriting, as of November 2026.
There is a reason the bigger down payment is the norm, and it is worth understanding because it also explains the price. A DSCR loan is sold to investors after it closes. The lower the lender's share of the price, the more investors want that loan, and the more of them bid, the better the rate.
Put a quarter down and nearly every buyer of these loans will look at yours. Put less down and only a handful will. That is why the smaller down payment comes with a higher rate before anything else about you is considered.
In the files I fund, most buyers land at a quarter down, and many of them close through an LLC or in the middle of a tax-deferred exchange. They are not stretching to get in. They are choosing the price that comes with the bigger down payment.
Can I put 15% down?
Yes, on a few programs, when everything else in the file is strong. The lender wants a high credit score and rent that covers the full payment with room to spare, and it will price the loan for the extra risk it carries.
- A credit score of 700 to 740 or higher, depending on the program; two of the four programs that allow it ask for 740.
- Rent that covers the full payment, a ratio of 1.00 or better, with the stronger programs preferring more.
- A long-term rental you will not live in. Short-term rentals are treated separately and usually need more down.
Checked by underwriting, as of November 2026.
If you can get to a fifth down instead, the field of programs opens up and the price usually improves. If you can get to a quarter, it opens all the way.
What about 10% down, or nothing down?
Not with a DSCR loan. A DSCR loan with no down payment does not exist in the programs we use, and none of them go below the smaller down payment described above. The no-money-down offers you may see advertised for rentals are usually seller financing, a partner's money, or a loan secured by another property you already own.
If the down payment is the obstacle, the honest paths are to buy a less expensive property, to bring a partner, or to use equity in a home you already own as the source of the down payment. That last one is common. The DSCR lender does not mind where the money comes from, as long as it is yours and it has been in your account for a while.
If you are weighing how much down payment for an investment property would take with a conventional loan instead, the comparison article covers that path.
What does my credit score change?
Your score sets the ceiling on how much the lender will cover. The table is the whole of the DSCR loan down payment requirements across the programs we use, by credit band. Each band is a range, not a promise, and the property and the rent can move you within it.
| Credit score | Most the lender will cover | Your down payment |
|---|---|---|
| 620 to 659 | 65% to 80%, few programs | 20% to 35% |
| 660 to 699 | 75% | 25% |
| 700 to 719 | 80% | 20% |
| 720 and up | 85% on a few programs | 15% |
Only a few programs go as low as the bottom band, and none go below it. Between the bands, a higher score mostly buys you a better price rather than a smaller down payment.
What does the rent have to cover?
Take the monthly rent the lender will count and divide it by the full monthly payment, with taxes, insurance and any association dues included. That number is the debt service coverage ratio, and it decides whether you get the full amount for your credit score.
- 1.00 or more: you get the full amount for your credit score.
- 0.75 to 0.99: still possible on many programs, with more money down and a higher price.
- Below 0.75: a few programs lend without looking at the ratio, at the lowest loan-to-value (the most money down) and the highest prices.
Checked by underwriting, as of November 2026.
An example, with made-up numbers.
If the full monthly payment is
$2,400and the rent the lender counts is
$2,160The ratio is 0.90. The article on what a good DSCR is shows which ratios programs accept and what they cost, and the DSCR calculator lets you try your own numbers.
Does the type of property matter?
It does. A single-family rental or a small multifamily building gets the ranges above. Some property types come with a lower ceiling on what the lender will cover, which means more down.
- Two to four units: the same ranges as a single-family home on most programs.
- Condos in buildings that do not meet the usual warranties, and rural properties on larger lots: the ceiling drops, often by 5 percentage points.
- Condo-hotel units: the ceiling drops further, to around 75% on a purchase and 65% on a refinance where allowed at all.
- Short-term rentals: their own case; the short-term rental article explains how they are handled.
Checked by underwriting, as of November 2026.
Where can the down payment come from?
From you, in an account the lender can see. Most programs want the money sourced and seasoned, which means it has been in your account long enough to show where it came from. Equity pulled from another property you own counts once it has landed. Seller credits can help with closing costs but rarely with the down payment itself. Gift funds depend on the program, so ask before you count on them.
- Funds sourced and seasoned for at least 30 days on most programs.
- Cash from a refinance or a line of credit on another property is acceptable once it is in your account.
- Reserves on top of the down payment: usually three to six months of the full payment, and up to twelve months for a first rental on some programs.
Checked by underwriting, as of November 2026.
What if this is my first rental?
Several of the programs we use work with first-time investors, usually with the larger down payment, a ratio of one or better, and more months of reserves. One program does not take first-time investors at all. That still leaves room.
One pattern comes up often enough to say out loud. Many first-time investors who ask about a DSCR loan do not yet own the home they live in. Most programs want to see that you do, or at least a history of renting. The reason is simple: a DSCR loan is a business-purpose loan for a property you will not live in, and lenders check that the story holds. If you are renting and buying your first rental, say so early and we will tell you which programs fit.
First-time investor terms we see: a maximum loan of 75% of the price, a coverage ratio of 1.00 or better, and 12 months of reserves on some programs; a minimum credit score of 700 on others. Some programs do not lend to first-time investors at all.
Checked by underwriting, as of November 2026.
What else do I need besides the down payment?
Two things. Reserves, which are months of the full payment sitting in an account after closing, and closing costs, which work the same way as on any mortgage. Then there is a choice to make about the prepayment penalty: most DSCR loans carry one for the first few years, and taking a shorter one or none at all raises the price. The requirements article lists the whole file, and the downsides article weighs the trade-offs.
Sources and important context
Educational content, not an offer, approval or rate quote. The DSCR loans described here are business-purpose loans for rental property you will not live in. Every range describes the programs Lendwise uses on the date shown, never a promise for your file. Calculator results are estimates, not program requirements or pricing tiers.