Do You Need 20% Down for a DSCR Loan?

Generally, yes. Most DSCR lenders cap purchases and rate-and-term refinances at 80% loan to value (LTV), which means 20% down on a purchase. Cash-out refinances are generally capped at 75%. The rent covering the mortgage is what gets the loan approved, but it doesn't raise those limits.

What changes your rate or limit

A lower credit score raises the rate, and some lenders also lower the limit for scores under 700. Some lenders lower it for small loans or rural properties too. Strong rent coverage mostly helps your rate, not the limit. None of this involves your personal income: no tax returns, no DTI. On a refinance, a lease is usually needed if you've owned the property more than 90 days.

Using equity you already have

If you already own a rental with equity, a cash-out refinance on it can fund the down payment on the next one. Most lenders want you to have owned it at least 3 months first. That's the usual way investors grow a portfolio (buy, fix, rent, refinance, repeat), and we finance both ends of it.

Related questions

DSCR lender fees

DSCR refinance with a 670 credit score

Refinances under $100K

Can you refinance right after a rehab?

Investment property only. Business-purpose loans, never owner-occupied. Terms vary by experience, credit, liquidity, and project strength. Subject to underwriting and approval. Not every deal or borrower will fit every program. This is not a commitment to lend.