Typical down payment requirements for DSCR purchase loans, factors that increase or decrease your down payment, and strategies to reduce cash-to-close.
Most DSCR purchase loans require 20–25% down. The exact requirement depends on your credit score, the property's DSCR, property type, and the specific lender program. For cash-out refinances, lenders typically limit the loan to 70–75% of the property value, meaning you need 25–30% equity remaining after the cash-out.
| Credit Score | Typical Down Payment | Notes |
|---|---|---|
| 720+ | 20% | Best pricing; most program options |
| 680–719 | 20–25% | Standard tier; competitive programs |
| 640–679 | 25% | Fewer programs; higher rate |
| 620–639 | 25–30% | Limited programs; max conservatism |
2–4 unit properties often require 25%+ down. Condos and townhomes may have additional overlays.
A stronger DSCR (1.25+) can sometimes offset a lower down payment. A borderline DSCR may require more down.
Jumbo DSCR loans ($1M+) often require 25–30% down regardless of credit.
Max LTV typically 70–75%. You need 25–30% equity after the cash-out is taken.
$400,000 Property at 7.25% — Market Rent $3,200
An extra 5% down ($20K) shifted DSCR from 1.19 to 1.26 — crossing into "strong" territory and opening better program options.
Use the calculator to test how different down payments affect your DSCR.
Disclaimer: Educational only. Not a commitment to lend. Down payment requirements vary by lender and program.
Last Updated: July 12, 2026 | Reviewed by: Matt Dean, NMLS #227603 · NEXA Mortgage