DSCR Loan Down Payment: How Much You Actually Need to Put Down

Wise Capital Mortgage Team · Austin, TX · Updated August 2026

DSCR down payments run higher than a primary residence loan, but the exact number moves based on your ratio, credit and property type — not a single fixed percentage.

The typical range

Most DSCR programs require 20-25% down. That's the range to plan around for a standard long-term rental with a strong DSCR ratio and good credit.

What pushes your down payment higher or lower

DSCR Ratio

1.25+ can lower the requirement

Below 1.0 Ratio

Often requires a larger down payment

Credit Score

700+ typically unlocks lower minimums

Property Type

Short-term rentals may require more down

The "no-ratio" option

If a property's rent doesn't quite cover its mortgage payment (a DSCR below 1.0), some lenders will still approve the loan — typically requiring a bigger down payment and a somewhat higher rate to offset the thinner cash flow cushion.

Don't Forget Reserves

Beyond the down payment itself, most DSCR lenders require you to show liquid cash reserves after closing — commonly several months of the new mortgage payment — on top of your down payment and closing costs.

Can you use gift funds or a second mortgage?

Rules vary by lender. Some DSCR programs allow a portion of the down payment to come from gift funds or a HELOC on another property; others require it to be entirely your own seasoned funds. Confirm this early if you're not funding the purchase from savings alone.

Find your exact down payment number

Send us the property and rent estimate and we'll calculate your DSCR ratio and required down payment.

See DSCR Loan Details