DSCR advice needed

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DSCR advice needed

Sonja Revells
Investor · Destin, FL · Member since 2024 · 37 posts · 13 votes

My original post was taken down and I'm not sure why. Looking for a DSCR lender that will accept smaller loan amounts, less than $100,000 and credit score in the lower six hundreds. Can anyone recommend one....?

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Jonathan LeeBusiness Member
Lender · FL · Member since 2025 · 86 posts · 30 votes
6mo

Hi Sonja,

Those smaller DSCR loan amounts can be a little tougher to place, but there are still a few lenders that will go below $100k depending on the deal and DSCR ratio. Credit in the low-600s can sometimes still work as well depending on leverage.

Happy to help you run through some options and see what might fit your scenario if you would like to connect.

Helm Mortgage Corp.5124 Reviews
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  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 673 posts · 240 votes
    6mo

    Hey @Sonja Revells, you're not alone—many DSCR lenders set a minimum loan amount around $100K, which can make smaller deals harder to finance. However, there are some small-balance DSCR programs and private lenders that will consider loans under $100K, even with credit scores in the low–mid 600s, depending on the property and cash flow.

    If you’re still looking, I’d be happy to help. We've worked with several investors in similar situation. 

    Feel free to reach out if you'd like to discuss your deal or see what options may be available. Happy to point you in the right direction.

    JCREIG Capital Funding
    WebsiteView Page
    2Reply
    • Sonja Revells
      OP
      Investor · Destin, FL · Member since 2024 · 37 posts · 13 votes
      6mo
      Thank You!!   Messaging you now.  
      Quote from @J Castro:

      Hey @Sonja Revells, you're not alone—many DSCR lenders set a minimum loan amount around $100K, which can make smaller deals harder to finance. However, there are some small-balance DSCR programs and private lenders that will consider loans under $100K, even with credit scores in the low–mid 600s, depending on the property and cash flow.

      If you’re still looking, I’d be happy to help. We've worked with several investors in similar situation. 

      Feel free to reach out if you'd like to discuss your deal or see what options may be available. Happy to point you in the right direction.


      0Reply
  • Jonathan LeeBusiness Member
    Lender · FL · Member since 2025 · 86 posts · 30 votes
    6mo

    Hi Sonja,

    Those smaller DSCR loan amounts can be a little tougher to place, but there are still a few lenders that will go below $100k depending on the deal and DSCR ratio. Credit in the low-600s can sometimes still work as well depending on leverage.

    Happy to help you run through some options and see what might fit your scenario if you would like to connect.

    Helm Mortgage Corp.5124 Reviews
    View Page
    2Reply
  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    6mo

    Wishing you success in your search and your project.

    1Reply
  • Ethan HaiglerBusiness Member
    Real Estate Agent · Charlotte, NC · Member since 2019 · 111 posts · 58 votes
    6mo

    @Sonja Revells I work for a company that provides lending for properties at $50k or more. Feel free to DM me if you’d like to go over options

    [email protected]704-607-2078
    3 Little Pigs Rental Management
    WebsiteView Page
    Ethan Haigler Realty
    WebsiteView Page
    1Reply
  • Tanya Brewer
    Lender · Scottsdale, AZ · Member since 2026 · 18 posts · 15 votes
    6mo

    Broker here. Sub-100k DSCR loans exist but your lender pool shrinks a lot. Most of the bigger non-QM shops have $75k or $100k minimums, but a few go down to $50k. The catch is pricing gets worse the smaller the loan - expect to add 50-100bps just for the low balance adjustment, on top of whatever your credit score pricing hit is. Low 600s on DSCR is doable but you're probably looking at mid to high 8s all in, maybe 9s depending on the LTV and ratio. Make sure whoever you're talking to is actually quoting you a rate with the low balance and credit adjustments baked in, not just their base rate. A lot of people get surprised at closing.

    0Reply
  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 497 votes
    6mo

    It's hard to get an intersection for both credit in low 600s and loan amounts under $100K. I've seen DSCR programs for under $100K down to a $50K loan amount depending on LTV for a middle mortgage FICO credit score of 660. Generally the lenders will use the middle mortgage FICO credit score. For example, if you have a 660, 630 and 610 for mortgage FICO scores, the lender will use 630 as your middle mortgage FICO score and use that credit score to structure the loan.

    DSCR programs are not regulated the same way as owner occupy loans so they can change the terms and rates all the way up to closing so better to work with someone you feel comfortable with under those terms whether through recommendations or research. Happy to connect to discuss further.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
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  • Corinna Negron
    Member since 2026 · 129 posts · 21 votes
    6mo

    You're running into a very common DSCR issue — most lenders simply don't like small loan balances.

    Many DSCR programs have minimum loan amounts around $100K–$250K, and below that the deal becomes hard to place because underwriting and appraisal costs are almost the same as a large loan.

    That said, you still have a few realistic paths:

    ✅ Portfolio lenders / community banks
    ✅ Boutique DSCR or small-balance programs (some go down to ~$75K–$100K)
    ✅ Private or bridge lenders for stabilization → then refinance into DSCR later

    Lower-600 credit is still workable depending on DSCR and reserves — structure matters more than people think.

    If you’d like, feel free to DM me a quick deal summary (location, value, rents, loan amount). Happy to point you in the right direction or see if it fits within our lending box.

    0Reply
  • Matthew BernalBusiness Member
    Investor · Austin, TX · Member since 2021 · 497 posts · 126 votes
    6mo

    This comes up quite a bit with lower-priced properties. Many DSCR lenders do focus on loans above $100k simply because smaller balances are harder for them to service.

    That said, some investor-focused lenders and smaller portfolio lenders are still willing to look at deals like this, especially if the property cash flow supports the loan well.

    In my experience, the key factors tend to be the rent relative to the payment and the overall deal strength, not just the loan amount.

    Out of curiosity, is the property you’re looking at a long-term rental or something like a short-term rental?

    [email protected]832-981-3190
    0Reply
  • Steven Baum
    Member since 2025 · 146 posts · 4 votes
    6mo

    Can you send over the details?

    Steven Baum (Loan Broker)
    📞 (208) 732-2326
    📧 [email protected]
    🌐 www.lilacfunding.com

    0Reply
  • Account Closed
    Member since 2026 · 35 posts · 3 votes
    6mo

    Hi Sonja,

    Those smaller DSCR loan amounts can definitely be tougher to place, but there are lenders and programs that will look at sub‑$100K loans and credit in the low 600s, especially when the deal itself pencils well on DSCR and leverage.

    A couple of things that can help when you’re talking with potential lenders or brokers in markets like Montgomery:

    • Ask specifically about their minimum loan amount and whether they'll consider exceptions if the DSCR is strong and LTV is conservative.
    • Clarify if they allow blanket loans across multiple properties to get over their minimums, or if each property has to stand alone. Some will let you group smaller assets; others require each to meet their floor individually.
    • Confirm their minimum credit score and how that affects max LTV or pricing for DSCR products, since low‑600s can sometimes work but may come with tighter leverage or higher rates.

    I work with investor-focused lenders that will consider smaller DSCR loans in certain markets, including the Southeast, and I'm happy to share what I'm seeing in terms of current minimums, DSCR requirements, and structures that have worked on sub‑$100K deals. If you'd like to compare a few options, feel free to shoot me a direct message here on BiggerPockets and I can walk through your specific scenario and see what might be a fit.

    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    4mo
    Quote from @Sonja Revells:

    My original post was taken down and I'm not sure why. Looking for a DSCR lender that will accept smaller loan amounts, less than $100,000 and credit score in the lower six hundreds. Can anyone recommend one....?

     @Sonja Revells

    That combo is tough: smaller loan amount under $100k plus lower-600 credit score.

    Most DSCR lenders have minimum loan amounts and many also price or cap leverage heavily once FICO gets into the low 600s. It may still be possible, but I'd expect fewer options, lower LTV, higher rate/points, or stronger reserve requirements.

    I’d look at:

    • small-balance DSCR lenders
    • local community banks/credit unions
    • private lenders
    • seller financing
    • bundling multiple properties if available

    If the property cash flow is strong, that helps, but FICO and loan size will still be the first two hurdles.

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
    1Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4mo
    Quote from @Sonja Revells:

    My original post was taken down and I'm not sure why. Looking for a DSCR lender that will accept smaller loan amounts, less than $100,000 and credit score in the lower six hundreds. Can anyone recommend one....?


     Yes you can do them at a $75k loan minimum however the rate will be high 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Lynne D.
    Member since 2023 · 15 posts · 7 votes
    4mo

    I'm wondering why you need a DSCR loan. A regular HML or PML loan should work I would think. My understanding is they have pretty much the same down payment and closing costs with monthly interest payments. And most of them have minimum loan amounts of $75K some $50K and I know one that'll go as low as $25K. They will probably require a 1.2 or 1.25 DSCR to ensure you can make the payment, but my understanding is that too pretty much the same with a DSCR loan.

    1Reply
    • Sonja Revells
      OP
      Investor · Destin, FL · Member since 2024 · 37 posts · 13 votes
      6d

      @Lynne D.  I need to refinance the home in order to pay off our original PML.   I bought it and renovated it and now have a solid tenant in place.   So looking to do a  cash out refinance. 

      0Reply
  • Lynne D.
    Member since 2023 · 15 posts · 7 votes
    5d

    So you might have an equity problem? Or does a DSCR do a higher LTV than a 30 year HML? Otherwise as I said, a lot of HMLs do $75k or less. You can Google it too and save on the broker fee.

    0Reply
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