How Much Down Payment for DSCR Loan? 20% Is Standard

Most DSCR lenders, including LYNK Mortgage, use 80% LTV as the standard, meaning 20% down payment. On a $400,000 purchase, that's $80,000 down and a $320,000 loan. This 20% equity cushion is industry standard because it protects the lender (if property loses 15% value, lender still has equity buffer) and is achievable for most investors. LYNK Mortgage offers 80% LTV on well-qualified borrowers: 680+ credit, 1.25+ DSCR, clean payment history.

Lower credit (620-660): may require 25% down instead of 20%. Lower DSCR (0.85-1.0): may require 25% down to offset thin cash flow margin. Short-term rentals (Airbnb): typically require 25-30% down due to income volatility. New builders or untested properties: may require 25% down due to value uncertainty. LYNK Mortgage evaluates each deal individually; if your DSCR is strong (1.5+) but credit is 650, you might still get 80% LTV. If your credit is good but DSCR is 0.80, you'll need 25% down. The product of all factors determines your specific down payment requirement.

Improve credit score: waiting 6-12 months while you pay down cards and resolve late payments can increase score and unlock better LTV. Negotiate lower purchase price: lower price reduces down payment dollar amount ($80k on $400k vs $75k on $375k). Increase rental income: if property is under-leased, raising rents before close improves DSCR, potentially improving LTV. Portfolio-level underwriting: if you own other properties, their combined strength can improve your overall profile, potentially unlocking 85% LTV on new deal. Work with LYNK Mortgage: portfolio lenders like us evaluate your entire profile; a strong history as a customer can unlock better terms on subsequent deals than you'd get elsewhere.