The Money Down
DSCR loan down payment, straight
The standard range, the five things that move it, and an honest answer to the 'no down payment' search you probably just made.
Plan on 20–25% down for a DSCR purchase. Strong credit and a strong ratio earn the low end. First-time investors commonly cap near 70–75% LTV. Refinances run 75–80% LTV max rate-and-term, a touch lower on cash-out. And no — nobody offers a true zero-down DSCR purchase. What exists instead is smarter: your equity doing the work.
What moves your number
Your DSCR
A 1.25+ ratio earns more leverage than a 0.95. Stronger coverage = the lender's risk drops = your down payment can too.
Credit score
The floor clusters at 620–640, but leverage is where credit pays: higher scores unlock the low end of the 20–25% range.
Property type
2–4 units and short-term rentals often price a notch tighter than a single-family long-term rental.
Investor experience
First-time investors are commonly capped near 70–75% LTV — 25–30% down — where allowed at all.
Transaction type
Refinance maximums typically run 75–80% LTV rate-and-term, a touch lower for cash-out.
The "no down payment DSCR loan" truth
It gets searched constantly, so here's the straight answer: no mainstream DSCR program finances 100% of a purchase. The ratio math itself is why — a zero-down loan carries the largest possible payment, which crushes the DSCR the program needs to see.
What experienced investors mean when they say they bought "with no money down" is usually a cross-property equity play: a cash-out refinance on a property they already own funds the down payment on the next one. Cash out of pocket approaches zero; the equity is doing the paying. On many programs the cash-out proceeds can even satisfy the reserve requirement — two birds, one refinance. That's a Cash-Out Your Equity conversation.
Down payment vs. the ratio — the lever most people miss
On a DSCR loan the down payment isn't just an entry fee — it's a tuning knob. More down → smaller loan → smaller payment → higher ratio. A property that computes at 0.95 with 20% down might clear 1.0 at 25% and hit a better pricing tier at 30%. The analysis runs exactly this ladder for your property, showing the additional down needed to reach 1.0 and 1.25. Try the rough math on the DSCR calculator — then let the full analysis use real market-rent data.
Don't forget the money AFTER the down payment
Reserves are the requirement nobody budgets for: commonly 3 months of the full payment on loans under about $1M, stepping to 6, 9, or 12 as the loan grows — and often 12 for first-timers. Full picture on the requirements page.
Find out what YOUR down payment buys.
The free analysis computes your DSCR and LTV at your planned down payment — and shows what an extra 5% would change.
Down payment FAQ
How much down payment does a DSCR loan require?
20–25% down is the standard range on a purchase. Strong credit and a strong ratio reach the low end; first-time investors, short-term rentals, and sub-1.0 ratios push it higher. On refinances, think in LTV: 75–80% maximums are typical for rate-and-term, slightly lower for cash-out.
Are there no-down-payment DSCR loans?
No mainstream DSCR program offers 100% financing on a purchase. What investors actually do: pull equity from an existing property with a cash-out refinance and use those proceeds as the down payment on the next one. Cash out of pocket can approach zero — the equity still has to come from somewhere.
Can my down payment be gifted or borrowed?
Program-specific — and it's a structuring question worth asking early rather than assuming. What's universally true: lenders verify where the funds come from, and equity pulled from another investment property via cash-out is a routine, accepted source.
Does a bigger down payment fix a low DSCR?
Often yes, mechanically: more down means a smaller loan, a smaller payment, and therefore a higher ratio. It's one of the main levers when a property computes below 1.0 at the target leverage — the analysis shows exactly how much additional down moves you to 1.0 or 1.25.
Do I also need cash reserves on top of the down payment?
Yes — commonly 3 months of the full payment on loans under roughly $1M, stepping to 6, 9, or 12 months as loan size grows, and often 12 for first-time investors. Budget for reserves on day one; this line item kills more deals than credit does.
Ready to get started?
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