Purchase leverage
DSCR loan down payment and LTV, without the guesswork.
Understand how purchase price, requested loan amount, down payment, leverage, reserves, and total cash to close work together.
There is no single down-payment percentage that applies to every DSCR purchase. The available leverage can change with credit, DSCR, property type, loan size, state, rent source, borrower experience, reserves, and the complete file.
Purchase structureDown payment = purchase price − loan amountLTV = requested loan amount ÷ purchase price or eligible value
Illustrative structures on a $600,000 purchase
| Illustrative down payment | Dollar amount | Illustrative loan | Resulting LTV |
|---|---|---|---|
| 20% | $120,000 | $480,000 | 80% |
| 25% | $150,000 | $450,000 | 75% |
| 30% | $180,000 | $420,000 | 70% |
Examples explain the math only and do not represent available maximum leverage or a commitment to lend.
What may influence the available leverage
01
Credit profile
Credit score, mortgage history, depth, and recent events can affect structure and pricing.
02
Property cash flow
Qualifying rent and program-specific PITIA can influence the requested leverage.
03
Property and loan
Property type, unit count, loan size, state, occupancy, and transaction details all matter.
Cash to close is more than the down payment
Depending on the transaction, the investor may also need closing costs, prepaid items, escrow or impound funds when applicable, title and insurance charges, appraisal fees, entity costs, and post-closing reserves. A useful quote separates these categories instead of treating every dollar as down payment.
Down-payment questions
What is the minimum down payment for a DSCR loan?
The available minimum varies by program and complete file. Submit the property, purchase price, requested loan, rent, credit range, property type, state, and liquidity so the actual leverage can be reviewed.
Can seller credits reduce my down payment?
Seller or interested-party contributions may be subject to contract terms and program limits and generally do not replace every required borrower contribution. The full purchase structure must be reviewed.
Does a larger down payment improve DSCR?
A lower requested loan can reduce the modeled principal-and-interest payment, which may improve coverage. It can also change cash reserves and investment returns, so the whole transaction should be considered.
Investor education from the DSCR Loan Guru deskPrepared for FFC Mortgage Corp. dba NonQM123, NMLS #3252.
Updated July 23, 2026
Purchase leverage
Choose the structure that fits the deal—not an advertised percentage.
Build the actual property, rent, credit, and cash-to-close scenario.