- Most lenders published an 80% maximum loan-to-value on DSCR purchases in 2026, so 20% down is the usual minimum. Angel Oak publishes 85% at 720+ credit, and Defy and Griffin at 740+.
- Refinances need equity instead of cash down: rate-and-term caps ran 75–80% of value and cash-out caps 70–80%, most at 75%.
- Two- to four-unit homes, condos, rural property, short-term rentals and foreign nationals often cap at 65–75%, which means 25–35% down.
- When the rent can't carry an 80% loan at the lender's minimum DSCR, the ratio sets the loan. On a $400,000 rental renting for $2,700, a 1.00 minimum cut the loan to about 76% of the price.
- Budget closing costs (2–5% of the loan is one lender's planning range) and reserves of 0–12 months of payments on top of the down payment.
A DSCR loan down payment is usually 20–25% of the purchase price. DSCR (debt service coverage ratio) — the property's monthly rent divided by its monthly payment — is how these loans qualify: the lender sizes the loan on the rental's income, not yours. Your down payment is simply what the lender won't lend. Most lenders published an 80% maximum loan-to-value (LTV) on purchases in September–October 2026, which puts the floor at 20%, and a few go to 85% for top credit. Transaction type, property type, loan size and the rent itself can each push the number higher. Every figure below comes from lenders' published guidelines, with dates.
The lowest cap wins, so check each one before you write an offer. Credit-score tiers are laid out in our DSCR loan requirements guide. This guide covers the other limits, and the cash you'll need beyond the down payment.
LTV is measured against the lower of the price and the appraisal
Loan-to-value divides the loan by the property's value. On a purchase, the standard definition, Fannie Mae's for one, uses the lower of the sales price and the appraised value. That matters on a DSCR purchase. If you agree to $400,000 and the appraisal comes in at $380,000, an 80% cap allows $304,000, not $320,000. The $16,000 difference comes out of your pocket unless the seller lowers the price.
The same report carries the rent schedule, the appraiser's estimate of market rent, which feeds the DSCR. One document can move both limits at once, so keep a cushion in your cash plan until it arrives.
Purchase vs. refinance: on a refinance, your equity is the down payment
On a purchase you bring cash. On a refinance you bring equity: the gap between the new loan and the appraised value stays in the property. Lenders allow the most leverage on purchases and the least on cash-out refinances.
| Lender (tier) | Purchase | Rate-and-term refinance | Cash-out refinance |
|---|---|---|---|
| Easy Street Capital | 80% | 80% | 75% |
| eLEND (matrix revised Sept 16, 2026) | 80% | 75% | 75% |
| FundLoans Spectrum (loans to $1M, 680+ FICO) | 80% | 80% | 75% |
| RCN Capital (700+ FICO) | 80% | 80% | 75% |
| Defy Mortgage (740+ FICO) | 85% | 80% | 80% |
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Two refinance details change the cash math. First, a cash-out loan repays the old mortgage and the closing costs before you see a dollar. Easy Street treats a refinance as cash-out only when you receive more than $2,000 after the payoff, closing costs and escrows. Second, timing. eLEND takes 5 points off its cash-out cap when you've owned the property less than six months, and lenders commonly cap a new loan at your cost basis until a seasoning period has passed. Our cash-out seasoning guide covers those clocks.
Vacancy also hits refinances harder than purchases. eLEND will lend on a vacant purchase using market rent, but caps a refinance at 70% LTV when the property is vacant or has no lease.
Property type: single-family gets the top cap, and most other types don't
| Property or borrower | Published cap | Down payment on $400,000 |
|---|---|---|
| Strongest credit | 85% (Angel Oak at 720+; Defy and Griffin at 740+) | $60,000 |
| Standard single-family | 80% at most lenders | $80,000 |
| 2–4 units or warrantable condo | 75% purchase, 70% refinance (eLEND) | $100,000 |
| Non-warrantable condo | 75%, loans to $1.5M (FundLoans); ineligible at eLEND | $100,000 |
| Rural | 65% (Easy Street); 75% on under 5 acres (eLEND, FundLoans) | $100,000–$140,000 |
| Short-term rental | 75% (Lima One); 80% (Easy Street); 5 points off the standard cap (eLEND) | $80,000–$100,000 |
| Foreign national | 65% (Roc, Civic); 70% (Angel Oak, Defy) | $120,000–$140,000 |
| DSCR below 1.00, or no ratio | 75% at 740+ for 0.75–0.99 (FundLoans); no-ratio to 75% at 700+ (Griffin) | $100,000 |
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Pricing follows the same pattern even where the cap doesn't change. Spring EQ's wholesale DSCR rate sheet for October 23, 2026 charges 0.500–0.750 points for a 2–4 unit property and 0.125–0.750 points for a condo, rising with LTV. Location can matter too: eLEND caps purchases in Connecticut, Illinois and New Jersey at 75%.
A house that needs work before it can be rented usually doesn't fit a DSCR loan at any down payment. eLEND, for one, won't lend on homes rated C5 or C6 for condition. Buy it with a fix-and-flip or BRRRR loan, then refinance into a DSCR loan once it's rented.
Loan size: bigger balances get smaller percentages
Leverage steps down as the balance climbs. FundLoans' Spectrum matrix shows the pattern clearly:
| Loan amount | 740+ FICO | 700 FICO | 680 FICO |
|---|---|---|---|
| Up to $1M | 80% | 80% | 80% |
| $1M–$1.5M | 75% | 75% | 70% |
| $1.5M–$3M | 75% | 70% | 65% |
| $3M–$4M | 65% | 65% | 60% |
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Cross $1 million and a 740 borrower's minimum down payment goes from 20% to 25%; cross $3 million and it's 35%. Defy's 85% tier also stops at $1.5 million. Small loans get squeezed from the other side. eLEND caps loans under $150,000 at 70% on a purchase and requires a DSCR of at least 1.25, and Spring EQ's October 23 sheet charges up to 0.500 points on loans of $250,000 or less above 70% LTV.
When the rent sets the down payment
The DSCR is a second cap that runs alongside LTV. Lenders want the rent to cover PITIA, the full payment of principal, interest, property taxes, insurance and any HOA dues, by a minimum ratio, most often 1.00. If the payment on an 80% loan is more than the rent can carry, the lender shrinks the loan until the ratio clears, and your down payment grows by the difference.
Take a $400,000 single-family rental that rents for $2,700 a month, with $450 a month in property taxes, $175 in insurance and no HOA, at an illustrative 7.25% over 30 years. An 80% loan of $320,000 carries $2,183 a month in principal and interest and $2,808 in PITIA, a DSCR of 0.96. That fails a 1.00 minimum, so the rent decides the loan:
| DSCR the lender requires | P&I the rent supports | Largest loan | LTV | Down payment |
|---|---|---|---|---|
| 0.80 or lower (Kiavi 0.80; LendingOne, Defy 0.75) | $2,183 (80% cap binds) | $320,000 | 80% | $80,000 |
| 1.00 (most lenders) | $2,075 | $304,200 | 76.0% | $95,800 |
| 1.05 (Roc, Civic) | $1,946 | $285,300 | 71.3% | $114,700 |
| 1.20 (a cushion for tax and insurance increases) | $1,625 | $238,200 | 59.6% | $161,800 |
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Read the first row carefully. A lender that accepts a 0.80 ratio may still make the 80% loan, subject to its own tiers, but ratios under 1.00 usually cost more. Spring EQ's sheet charges 0.875–1.000 points for a DSCR between 0.75 and 1.00 above 70% LTV, and FundLoans caps a 740+ borrower at 75% below 1.00. At the other end, a ratio of 1.25 or more earns 0.250–0.375 points of credit on the same sheet.
More cash isn't the only fix for a DSCR gap. A 40-year amortization or an interest-only period lowers the payment (our rates guide shows how much), points can buy a lower rate, and a lower price shrinks the loan. Check the ratio before you set your offer, not after the appraisal.
What 5% more down buys you in pricing
Leverage is priced, not just capped. Spring EQ's wholesale sheet for October 23, 2026 adjusts the price of the loan by LTV band. For a borrower with a 740–759 score buying at $400,000:
| Down payment | LTV band | Price adjustment | Cost on the loan |
|---|---|---|---|
| $80,000 (20%) | 75–80% | −1.375 points | $4,400 on $320,000 |
| $100,000 (25%) | 70–75% | −0.500 points | $1,500 on $300,000 |
| $120,000 (30%) | 65–70% | 0.000 | $0 on $280,000 |
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Going from 20% to 25% down removes $2,900 of pricing cost and $20,000 of principal, and the lender can deliver that saving as a lower rate instead of fewer points. The step is steeper at lower scores: at 720–739, the same three bands cost 2.125, 1.125 and 0.375 points. If you have the cash and plan a long hold, price the loan at both 80% and 75% before you choose.
Cash to close: the down payment is the biggest line, not the only one
Griffin Funding publishes a planning range of 2–5% of the loan amount for DSCR closing costs: lender fees, the appraisal, title, recording, prepaid interest and escrow deposits. Reserves are separate. They're money that must still be in your accounts after closing, measured in months of PITIA. Published requirements ran from no stated minimum at Kiavi to 3 months at Defy, 3–9 months at Easy Street and 6 months on the eLEND and FundLoans matrices, rising to 12 months for first-time investors on both.
Take the same $400,000 rental financed at 75%, where the payment is $2,672 and the ratio is 1.01:
| Item | Amount |
|---|---|
| Down payment (25%) | $100,000 |
| Closing costs at 2–5% of a $300,000 loan | $6,000–$15,000 |
| Reserves: 6 months of $2,672 PITIA | $16,032 |
| Cash to show before closing | $122,032–$131,032 |
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That's roughly 30–33% of the price before furniture, make-ready repairs or tenant-placement fees. Not every dollar has to be cash in a checking account: Easy Street counts retirement accounts, stocks and bonds toward reserves at a 10–20% discount, so a $20,000 brokerage balance may count as $16,000–$18,000. For a line-by-line estimate of the closing costs, see our DSCR closing costs guide.
Where the down payment can come from
Lenders verify the down payment, closing funds and reserves from statements, and they care where the money came from.
- Your own savings and investments. Expect to document them; eLEND requires at least 30 days of asset verification.
- Gifts, with conditions. Angel Oak allows gift funds. eLEND accepts gifts from a family member if you can document at least 10% of the down payment from your own funds, and it won't count gifts toward reserves or accept gifts of equity. FundLoans doesn't allow gift funds for first-time investors.
- Not unsecured borrowing. eLEND lists unsecured loans, sweat equity and gifts that must be repaid as ineligible sources of down payment. Ask before you plan on a personal loan or a credit line.
- Seller credits, for costs only. Concessions are capped, at 6% on Angel Oak's program and at a typical 3–6% of the lower of price and appraisal according to an OfferMarket guide from July 2026. They can cover closing costs, prepaids and points on a purchase, never the down payment. They still help: every dollar of costs the seller covers is a dollar you can put toward the down payment.
- Equity from a rental you already own. A cash-out refinance on another property can fund the next down payment, subject to that loan's own caps, costs and seasoning. See investment property cash-out refinance.
Five ways to need less cash down
- Move up a credit tier. The published 85% caps start at 720 at Angel Oak and 740 at Defy and Griffin. On a $400,000 purchase, 85% instead of 80% is $20,000 less down, if the rent can carry the bigger payment.
- Buy a property type with the top cap. A single-family home under $1 million gets the highest leverage on the matrices above; a duplex at the same price may need 5 points more.
- Get the rent documented. A signed lease at or above market keeps the DSCR from binding. Lenders cap how far a lease can exceed market: Kiavi uses the lower of the lease and 110% of appraised market rent, and eLEND accepts a higher lease within 120% of market with three months of receipts.
- Shift costs to the seller. A seller credit can't pay the down payment, but it frees your cash for it.
- Mind the minimum loan size. Under $150,000, eLEND drops to 70% LTV and a 1.25 DSCR. On a very cheap house, a lender with a lower minimum may need less down.