How Much Down Payment Is Required for a DSCR Loan?

[Robin Simon]

🤔How Much Down Payment Is Required for a DSCR Loan?
➡️ For most DSCR Loan programs, the standard minimum down payment is 20%, meaning the maximum loan-to-value (LTV) is 80.0%. This is the common cap across nearly all lenders for acquisition DSCR Loans, regardless of property type, and reflects industry risk tolerance for business-purpose loans without income verification.

Some lenders do offer 85.0% LTV (15% down) options, but these are rare and come with tight restrictions, typically limited to long-term rental properties only, and requiring a minimum DSCR of 1.25x along with a very high credit score. These higher-leverage programs are also more likely to carry pricing add-ons, stricter reserve rules, or reduced flexibility on things like short-term rentals or mixed-use.

While 80.0% LTV is generally the ceiling for purchases, many investors still choose to put down 25% or more in order to secure better interest rates and loan terms. Lenders typically offer pricing incentives for lower LTV tiers (like 65.0% or 70.0%), especially when paired with strong credit and experience.

Currently - Harpoon Capital is offering 15% Down Payment DSCR Loans (85.0%) LTV!

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