DSCR Loan Down Payment Requirements: What Real Estate Investors Need to Know

For real estate investors, securing the right financing is often the key to unlocking new opportunities. DSCR loans, or Debt Service Coverage Ratio loans, have become a popular choice for those looking to fund investment properties. These loans focus on the income potential of the property rather than the borrower’s personal financial profile, making them an attractive option for seasoned and first-time investors alike.

One crucial factor to consider when applying for a DSCR loan is the down payment requirement. It plays a significant role in determining the financial commitment and overall feasibility of the investment. Understanding these requirements can help investors prepare better and ensure a smoother loan approval process. Whether you're planning to expand your portfolio or make your first investment, knowing what lenders expect upfront can make all the difference.

DSCR loans require a down payment—there is no such thing as a “no money down” DSCR loan. Most lenders, including OfferMarket, require a down payment of 15% to 35%, depending on the loan structure and property profile.