Requirements

DSCR Loan Down Payment: How Much You Need

The honest answer is 20 to 25 percent down for most DSCR loans. Here is what moves that number, whether less is possible, and the cash you need beyond it.

By Owen Brandt, Research Editor. Updated June 9, 2026.

The down payment is the largest piece of cash a DSCR deal needs, and the number most investors want pinned down first. We are not a lender; some links here may be affiliate links, see our disclosure.

The realistic answer: 20 to 25 percent

Most DSCR loans require 20 to 25 percent down, which is the same as a maximum loan-to-value of 75 to 80 percent. Published 2026 programs across the major investor lenders cap purchase leverage at 80 percent for a strong borrower, so 20 percent down is the practical floor and 25 percent is common, especially where the ratio is tight. Cash-out refinances allow less leverage, usually 70 to 75 percent, so you keep more equity in.

What moves the requirement

Three things push the down payment up. A thin debt service coverage ratio is the main one, because a larger down payment shrinks the loan and lifts the ratio back toward the floor. Lower credit moves it, since weaker borrowers get less leverage. And an unusual property, a short-term rental or a hard-to-value type, often gets a lower maximum loan-to-value. The cleanest way to rescue a marginal deal is frequently just more money down.

Does 15 percent down exist?

Rarely. The honest standard is 20 percent down for a strong profile. A small number of programs occasionally stretch to higher leverage for top-tier borrowers, but sub-20-percent down on a DSCR loan is the exception, and it usually costs more in rate. If your plan depends on 15 percent down, confirm it in writing with a specific lender before you build a deal around it.

The cash is more than the down payment

The down payment is not the only cash a deal needs. Add closing costs and points, plus the reserves the lender holds back after closing, often six months of the full payment. Budgeting only the down payment is the classic way to get caught short. Run the real total on the cash to close calculator before you write the offer, and see the full bar on the requirements guide.