Requirements
Can You Get a DSCR Loan With Bad Credit?
DSCR loans lean on the property, not your income, so they are more forgiving than a normal mortgage. But credit still sets a floor. Here is what is possible with a lower score.
Because a DSCR loan qualifies on the property rather than your income, it is more forgiving of a complicated borrower than a conventional mortgage. But credit has not left the picture, and a low score limits your options and raises your cost. We are not a lender; some links here may be affiliate links, see our disclosure.
Where the floor sits
Most DSCR programs set a minimum credit score around 660 to 680. A smaller set of lenders accept scores into the low 600s, around 620, and they charge for it: a higher rate, lower leverage, or a larger down payment to offset the risk. Below the low 600s, the available programs thin out quickly. The full picture is in the credit score guide.
Your options with a lower score
Three paths exist. Take the higher-priced program a lower-credit lender offers, and accept the rate. Offset the credit with a larger down payment, which lowers the lender's risk and can unlock a better tier. Or, often the smartest move, improve the score before you apply. Paying down credit card balances before the lender pulls your file can lift your score a tier in a single month, because utilization updates monthly, and a tier can be worth a quarter point of rate or more.
When to wait
If a late payment or collection is about to age past the window that disqualifies a program, waiting a few months for it to season off can be cheaper than applying into a worse tier. And if your score is genuinely low, a short delay to repair it often saves more than any single deal is worth. If you were already turned down, see why DSCR loans get denied and what to do.
Lenders that work with lower scores. Starting points to research, not endorsements. Confirm terms on each lender website. Some links may be affiliate links; see our disclosure.