DSCR loan program down payment
You can get a DSCR loan with as little as 20% down.
That’s a reasonable requirement considering this loan requires no tax returns, W2s, or pay stubs. It’s one of the only no-income-verification loans in today’s market.
Lenders review the loan based on the property’s income, not yours.
This is a huge advantage for full-time or just-starting investors who don’t have two years’ tax returns showing high personal income.
DSCR loans come with all sorts of benefits for those looking to build their real estate portfolio fast.
Why do DSCR loans require a down payment?
A DSCR loan is for investment properties, a property type that almost always requires a down payment.
Lenders view rental properties as higher risk compared to primary residences. So higher rates and down payments typically come with this program.
If you buy a primary residence with an FHA loan, for instance, you only need 3.5% down. A conventional loan requires just 3% down.
But these down payments aren’t available unless you plan to live in the home, or at least in one of the units if it’s a 2-4 unit property.
But the DSCR loan program down payment is actually a very good deal, considering most fully-documented investment property loans require 15%-20% down.
Depending on the DSCR lender, you can get a similar down payment as on a fully-documented conventional loan without proving personal income.
