🤔What credit score do I need for a DSCR Loan?
➡️The minimum credit score required for a DSCR Loan will vary from lender to lender. But in general, the minimum qualifying credit score for a DSCR Loan is going to be between 600 and 680, with most common DSCR lender minimum credit scores of 640 or 660. These minimums may also adjust in certain cases, such as requiring higher minimums for high-leverage loans (i.e. 80.0% LTVs) or riskier deals where the DSCR ratio is low or the property is a short term rental in a rural vacation market. But in general, a median credit score above these minimums means you are eligible for a DSCR loan, and almost certainly eligible in near-100% of cases with a credit score of 680 or higher. Conversely, with a credit score of less than 640, and definitely of less than 620, you will likely be ineligible until the score can be improved through time and credit repair.

While the credit score utilized by DSCR Lenders is the median number of the three scores generated by each of the major bureaus, most lenders will use what can be referred to as “buckets” or ranges of scores to determine the impact of credit score on DSCR Loan rates and terms. This essentially means that your credit score will fall into a specific range, in which it will be treated the same as the other scores in that specific range, even if not exactly the same. For example, DSCR Lenders will often group scores into “buckets” such as 640-659, 660-679, 680-699, 700-719, 720-739, 740-759, 760+. Typically, these buckets will be in groups of 20 and at the upper limit, treat anything above a certain number (often 760 or 780) the same, as the best possible score. This means in practice for example that a 685 and 699 credit score will be treated the same, as will a 765 and 800 score.

Right now, Harpoon Capital offers DSCR Loans with credit score minimums down to 600 under our Fin Series program.

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