DSCR loan requirements: a 620–680 score, 20–25% down and rent that covers the payment

DSCR loan requirements come down to three numbers and a property that fits the lender's box: a credit score of 620–680 or higher, a down payment of 20–25%, and rent that covers the full monthly payment, usually at a ratio of 1.00 or better. Lenders also want cash reserves and a short document list. None of them want your tax returns. Every figure below is from a lender's own published guidelines as of September–October 2026.

Each requirement has two levels: the minimum that gets you approved, and the tier that gets you full leverage and better pricing. They are often far apart. At RCN Capital, a 660 score clears the minimum but caps a purchase at 65% loan-to-value, against 80% at 700.

The checklist: minimums vs. best-pricing tiers

DSCR loan credit score: approval at 620–680, leverage at 700+

Published minimums in October 2026: Griffin Funding 620; Easy Street and Defy 640; Lima One, RCN, Roc and Civic 660; Angel Oak 680. Clearing the minimum gets you a loan. The tier above it decides how big the loan can be. The grid below sets four lenders' published purchase tiers side by side.

Defy publishes only its top tier, 85% at 740+ on loans up to $1.5 million, above a 640 minimum; Total Quality Lending's grid assumes a DSCR of 1.00 or more. Griffin Funding publishes 15% down (85% LTV) at 740+ with no tiers in between. Read these as published examples, not a market average. Refinances run lower: RCN caps cash-out at 75% for 700+ and 60% at 660–679.

DSCR loan down payment: what each tier costs on a $350,000 purchase

Take a $350,000 single-family purchase renting for $2,600 a month, with $310 a month in property taxes and $140 in insurance. Hold the rate at 7.25% over 30 years so only leverage changes. In practice a lower score usually costs rate as well.

Dropping from 700 to 660 adds $52,500 to the down payment on the same house. Watch the DSCR column too. At 85% LTV the ratio falls to 1.05, one tax reassessment away from 1.00. Leverage and DSCR pull against each other, so the top LTV tier only works when the rent can carry the bigger payment.

DSCR thresholds: 1.00 at most lenders, with exceptions both ways

The DSCR caps the loan separately from LTV. Work the formula backward: maximum P&I equals rent divided by the required DSCR, minus taxes, insurance and HOA. On the $2,600 rent above, with $450 of taxes and insurance, a 1.00 minimum leaves $2,150 for P&I, which supports about $315,000 at 7.25% over 30 years. A lender that wants 1.25 leaves $1,630, or about $239,000. On a $350,000 purchase that lender's 80% LTV cap doesn't matter; the rent limits you to about 68%.

DSCR loan reserves: from none stated to 12 months of payments

Reserves are liquid funds left after closing, measured in months of PITIA. They vary more than any other requirement. Kiavi lists no minimum liquidity requirement. Defy asks for at least 3 months. Easy Street asks for 3–9 months and discounts retirement and investment accounts by 10–20%. One published wholesale matrix, FundLoans' Spectrum DSCR program (effective August 1, 2026), sets 6 months on the subject property, 12 months for first-time investors and foreign nationals, and 2 more months for each additional property.

• What counts: checking, savings, money market accounts and CDs; brokerage and retirement balances usually at a discount; at some lenders, cash-out proceeds.
• What it costs on the example: 6 months of the $2,360 PITIA at 80% LTV is $14,160; 12 months is $28,320.
• Where reserves earn something: Griffin funds DSCRs below 1.00 when reserves back the loan.

Budget for the larger figure. Reserves sit on top of the down payment and closing costs, and the same bank statements verify all three.

Property rules: rural, condos, minimum values and condition

• Units: 1–4 units, townhomes and PUDs at every lender. Lima One goes to 9 units; Easy Street to 10, including mixed-use.
• Rural: Roc and Civic don't lend on rural property. Easy Street does, at a 65% LTV cap. The FundLoans matrix allows rural lots under 5 acres at 75% LTV.
• Condos: warrantable condos are standard. Non-warrantable condos and condotels need a specialist. Defy and Angel Oak list both; the FundLoans matrix caps non-warrantable condos at 75% LTV and $1.5 million.
• Minimum value and loan size: RCN wants an as-is value of at least $115,000; Easy Street $100,000. Minimum loans run from $70,000 (RCN) and $75,000 (Defy, Roc, Civic) to $100,000 (Griffin, Angel Oak, Easy Street) and $150,000 (FundLoans).
• Large loans: leverage falls as balances rise. On the FundLoans matrix a 740+ borrower gets 80% up to $1 million and 75% above it; Defy's 85% stops at $1.5 million.
• Condition: these loans are for rent-ready property. Easy Street is turnkey-only and Griffin excludes fixer-uppers. A house that needs work belongs on a rehab or bridge loan first.
• Geography: Defy doesn't lend in 11 states, including Arizona, Michigan and Nevada. Lima One skips Alaska, North Dakota, South Dakota and Vermont.

First-time investors: usually eligible, sometimes on tighter terms

Most DSCR lenders don't require landlord experience. Roc, Civic and Lima One list none, and Easy Street accepts first-time investors with no restrictions. Where limits exist, they are specific. The FundLoans matrix calls you experienced if you've owned income-producing real estate for 12 months of the last 36. Everyone else needs a 700+ score, a DSCR above 1.00, a loan under $2 million, no gift funds, 12 months of reserves and 5 points less LTV.

First-time investor is not the same as first-time homebuyer. Angel Oak's program excludes first-time homebuyers, and Griffin notes that most DSCR programs aren't available if you don't own a primary residence. If you rent your own home, ask about that rule before you pay for an appraisal.

DSCR loan documents: a short list with no tax returns

The file is short because the property carries the income. Gather these before you apply:

1. Application and credit authorization.
2. Purchase contract, or the current mortgage statement on a refinance.
3. Two months of bank statements covering the down payment, closing funds and reserves.
4. Leases and rent verification if the property is rented, plus property management records on a refinance.
5. A hazard insurance quote, and flood insurance if the property sits in a flood zone.
6. Entity documents if you close in an LLC: articles of organization, operating agreement, EIN letter and certificate of good standing.
7. For a short-term rental refinance: booking history or payout statements.

The lender orders the appraisal: a value report plus a rent schedule (Form 1007), with the rent analysis built into Form 1025 on 2–4 units and Form 1073 for condos. That rent schedule is often the number your DSCR rests on. A lease above market may count only up to a cap; Kiavi uses the lower of the lease and 110% of appraised market rent.

Short-term rentals: the same checklist with higher bars

Easy Street doesn't require STR history, which helps on a first Airbnb purchase. On a refinance without booking history, lenders may fall back to long-term market rent, which can shrink the loan. Local short-term rental rules also matter; confirm the city allows the use before you count on the income.