DSCR Lenders with the Lowest Down Payment Requirements in 2026

For real estate investors, leverage is a powerful wealth-building tool. The less cash you need for down payments, the more properties you can acquire and the faster you can scale your portfolio. While conventional investment property loans typically require 25-30% down, certain DSCR lenders offer significantly lower down payment options—sometimes as low as 15%.

Understanding which lenders offer the lowest down payment requirements, what trade-offs you'll face, and how to qualify can dramatically accelerate your real estate investing journey.

Standard DSCR Down Payment Requirements

Before exploring low-down-payment options, it's important to understand the baseline:

Typical DSCR Down Payments:

• Standard requirement: 20-25%
• Conventional wisdom: Higher down payments (25-30%) get better rates
• Maximum leverage: Most lenders cap at 80% LTV (20% down)
• Portfolio properties: Often require 25-30% down

The down payment requirement directly affects your loan-to-value (LTV) ratio:

• 20% down = 80% LTV
• 25% down = 75% LTV
• 30% down = 70% LTV

Lower down payments mean higher LTV ratios, which lenders view as increased risk.

Top DSCR Lenders Offering Lowest Down Payment Options

1. Griffin Funding

Griffin Funding stands out by offering DSCR loans with down payments as low as 15% for qualified borrowers.

Down Payment Options:

• Minimum: 15% down (85% LTV)
• Standard: 20% down (80% LTV)
• Preferred: 25% down (75% LTV)

Qualification Requirements for 15% Down:

• Credit score: 720+
• DSCR: Minimum 1.25
• Significant reserves: 12 months PITI
• Limited to single-family residences
• Loan amounts up to $2.5 million

Trade-offs:

• Interest rates approximately 0.50-0.75% higher at 15% down vs. 25% down
• PMI or lender-paid mortgage insurance may apply
• Stricter property condition requirements

Best For: Investors with strong credit and reserves who want to maximize property acquisition velocity.

2. New Silver

New Silver offers competitive low-down-payment options for experienced investors.

Down Payment Options:

• Minimum: 15-20% depending on property type and borrower profile
• Standard: 25% down

Key Features:

• Flexible underwriting for portfolio investors
• Considers cross-collateralization to reduce down payment needs
• Fast closing timelines (21 days or less)
• Loan amounts up to $5 million

Qualification Path:

• Credit score: 660+ (700+ for lowest down payment)
• Strong property cash flow (DSCR 1.1+)
• Proven investment experience preferred

Best For: Experienced investors with multiple properties who can demonstrate consistent cash flow.

3. Anchor Loans

Anchor provides 20% down payment options with competitive rates and flexible terms.

Down Payment Options:

• Minimum: 20% down (80% LTV)
• Portfolio rates: May require 25% down

Advantages:

• No income verification required
• DSCR as low as 0.8 accepted
• Fast closings (15-20 days)
• Nationwide lending
• Loan amounts up to $5 million

Best For: Investors who want the sweet spot between leverage and competitive pricing without extensive documentation.

4. Visio Lending

Visio offers 20% down payment programs specifically designed for buy-and-hold investors.

Down Payment Options:

• Standard: 20% down for single properties
• Portfolio: 25% down may be required for multiple properties

Key Benefits:

• 30-year fixed-rate options with 20% down
• DSCR ratios as low as 0.75 accepted
• No limit on number of financed properties
• First-time investor programs available

Qualification:

• Credit score: 680+ for 20% down
• Cash reserves: 6-9 months PITI
• Property must be rentable condition

Best For: Long-term investors seeking fixed-rate financing with moderate leverage.

5. Lima One Capital

Lima One offers flexible down payment structures based on property type and investor experience.

Down Payment Options:

• Minimum: 20% down for standard DSCR loans
• Short-term rentals: May require 25% down
• Single-family: Often 20% down
• Multi-family: 25-30% down typical

Special Programs:

• Lower down payments for experienced investors with strong track records
• Relationship pricing for repeat borrowers
• Portfolio options with blended down payment requirements

Best For: Investors with diverse property types seeking a lender who can handle complexity.

How to Qualify for Low Down Payment DSCR Loans

1. Optimize Your Credit Score

Credit scores directly impact both eligibility and down payment requirements:

• 740+: Qualify for lowest down payment options with best rates
• 700-739: Good access to low down payment programs
• 680-699: May qualify for 20% down but not 15%
• Below 680: Typically require 25%+ down

Improvement Strategies:

• Pay down credit card balances below 30% utilization
• Dispute any errors on credit reports
• Become an authorized user on seasoned accounts
• Avoid new credit inquiries before applying

2. Build Substantial Cash Reserves

Lenders offset the risk of low down payments by requiring larger reserve accounts:

Reserve Requirements by Down Payment:

• 15% down: 12-18 months PITI in reserves
• 20% down: 6-12 months PITI in reserves
• 25% down: 3-6 months PITI in reserves

What Counts as Reserves:

• Cash in bank accounts
• Stocks, bonds, and mutual funds (typically 70% of value)
• Retirement accounts (60-70% of vested balance)
• Other real estate equity (sometimes)

Strategy: Maintain reserves across multiple liquid accounts to demonstrate financial stability.

3. Target Properties with Strong Cash Flow

The property's ability to cover debt service is crucial for low down payment approvals:

DSCR Targets:

• 15% down: DSCR of 1.20-1.25 or higher
• 20% down: DSCR of 1.10-1.15
• 25% down: DSCR as low as 0.75-1.0

Calculation Example:

• Monthly rent: $2,500
• Monthly PITI payment: $2,000
• DSCR: $2,500 ÷ $2,000 = 1.25

Tips for Strong DSCR:

• Choose properties in high-demand rental markets
• Select property types with stable rental income (single-family, small multi-family)
• Avoid properties needing extensive repairs
• Use conservative rent estimates based on actual market comparables

4. Demonstrate Real Estate Investment Experience

Lenders are more comfortable offering low down payment loans to experienced investors:

Experience Tiers:

• Beginner (0-2 properties): May be limited to 20-25% down
• Intermediate (3-5 properties): Access to 20% down programs
• Experienced (6+ properties): May qualify for 15% down options

How to Leverage Experience:

• Provide detailed portfolio summary
• Show history of successful property management
• Demonstrate consistent rental income across properties
• Highlight any property value appreciation

5. Choose the Right Property Type

Some property types qualify more easily for low down payment DSCR loans:

Easier to Finance with Low Down Payment:

• Single-family residences
• 2-4 unit properties
• Condos and townhomes (in strong markets)
• Traditional long-term rentals

May Require Higher Down Payments:

• Short-term rentals (Airbnb, VRBO)
• Mixed-use properties
• Properties needing significant renovation
• Rural properties with limited comparable sales

The True Cost of Low Down Payment DSCR Loans

While lower down payments preserve cash for more acquisitions, they come with trade-offs:

Interest Rate Premiums

Typical Rate Adjustments:

• 15% down: +0.50% to +0.75% compared to 25% down
• 20% down: +0.25% to +0.50% compared to 25% down

Example:

• Loan amount: $400,000
• Rate at 25% down: 7.25%
• Rate at 20% down: 7.50%
• Rate at 15% down: 7.75%

Monthly Payment Comparison:

• At 7.25%: $2,727
• At 7.50%: $2,797 (+$70/month)
• At 7.75%: $2,866 (+$139/month)

Mortgage Insurance

Some lenders require mortgage insurance on DSCR loans above 80% LTV:

PMI Costs:

• Typical range: 0.25% to 1.0% annually
• On $425,000 loan (15% down on $500k property): $1,063-$4,250/year
• Often added to monthly payment: $89-$354/month

Lender-Paid Mortgage Insurance (LPMI):

• Alternative structure where lender pays PMI but charges higher rate
• Typically adds 0.25-0.50% to interest rate
• May be preferable for tax purposes (interest is deductible, PMI may not be)

Higher Monthly Payments

Less money down means larger loan amounts and higher monthly debt service:

Property Purchase Price: $500,000

The reduced cash flow from higher payments must be weighed against the benefits of preserving capital.

Strategies to Maximize Leverage

1. The Velocity Strategy

Use low down payments to acquire multiple properties quickly, then refinance or pay down as equity builds:

Example:

• Available capital: $200,000
• Strategy A: Buy 1 property at 25% down ($200,000) = 1 property
• Strategy B: Buy 4 properties at 20% down ($50,000 each) = 4 properties

Strategy B advantages:

• 4x the property appreciation potential
• 4x the rent growth potential
• Diversification across multiple assets
• Faster portfolio scaling

Requirements:

• Sufficient reserves for all properties (6-12 months PITI × 4)
• Strong cash flow on each property
• Ability to manage multiple properties

2. The Hybrid Approach

Mix down payment percentages across your portfolio:

Portfolio Example:

• Property 1: 30% down (best rate, primary cash flow generator)
• Properties 2-3: 20% down (balanced approach)
• Property 4: 15% down (maximum leverage on strongest performer)

Benefits:

• Optimizes overall portfolio returns
• Reduces risk through varied leverage levels
• Preserves some capital while maximizing property count

3. The Reserve Optimization Method

Minimize down payments while maintaining required reserves by cycling capital:

Process:

1. Secure loan approval with required reserves verified
2. Close on property with minimum down payment
3. After closing, use freed-up capital for next down payment
4. Build reserves back up before next acquisition

Caution: This requires careful timing and strong cash flow to avoid reserve deficiencies.

4. Cross-Collateralization

Some portfolio lenders allow using equity in existing properties to reduce down payment requirements on new acquisitions:

Example:

• Existing property with $100,000 equity
• New purchase requiring $75,000 down payment
• Lender allows equity from existing property to satisfy part of down payment
• Actual cash required: $40,000 instead of $75,000

Considerations:

• Not all lenders offer this
• Creates lien on multiple properties
• May complicate future refinancing

Common Mistakes to Avoid

1. Over-Leveraging

Mistake: Using 15% down on every property to maximize acquisitions without adequate cash reserves.

Risk: One vacancy or major repair can create cash flow crisis across entire portfolio.

Solution: Maintain 12-18 months total reserves for highly leveraged portfolios.

2. Ignoring Cash Flow

Mistake: Accepting negative or barely positive cash flow to minimize down payment.

Risk: Unsustainable property that drains resources and limits future growth.

Solution: Require minimum $200-300/month positive cash flow per property even with low down payment.

3. Rate Shopping Only

Mistake: Choosing lender solely based on who offers lowest down payment.

Risk: Missing hidden fees, unfavorable terms, or poor customer service.

Solution: Evaluate total cost of loan, lender reliability, and closing speed alongside down payment requirements.

4. Depleting All Reserves

Mistake: Using every available dollar for down payments without maintaining personal emergency fund.

Risk: Personal financial instability that can cascade to investment portfolio.

Solution: Maintain 6 months personal expenses separate from investment property reserves.

Questions to Ask Low Down Payment DSCR Lenders

1. What is your minimum down payment, and what factors determine eligibility?
2. How much do interest rates increase at lower down payments?
3. Is mortgage insurance required above 80% LTV, and what are the costs?
4. What reserve requirements apply at different down payment levels?
5. Are there loan amount limits for low down payment programs?
6. Do you offer portfolio discounts for multiple properties?
7. What property types qualify for your lowest down payment programs?
8. Can I use gift funds, equity from other properties, or alternative sources for down payment?
9. How does property condition affect down payment requirements?
10. What credit score is required for your lowest down payment option?

Tax and Financial Considerations

Interest Deductibility

Higher loan amounts from lower down payments mean more interest expense, which is generally deductible:

Example:

• 25% down ($375k loan at 7.25%): ~$27,000 first-year interest
• 15% down ($425k loan at 7.75%): ~$33,000 first-year interest
• Additional deduction: ~$6,000

Tax Benefit (at 30% marginal rate): ~$1,800

Return on Investment

Lower down payments can dramatically improve ROI metrics:

Property Purchase: $500,000 Annual appreciation: 5% = $25,000 Annual cash flow: $3,600

Lower down payments amplify returns when properties perform well, but also amplify losses if properties underperform.

The Bottom Line

DSCR lenders offering low down payment options—particularly 15-20% down programs—provide powerful leverage for real estate investors looking to scale portfolios quickly. Lenders like Griffin Funding, New Silver, Anchor Loans, Visio Lending, and Lima One Capital offer competitive programs that can help you acquire more properties with the same capital.

However, low down payments aren't right for every investor or every property. They work best when:

• You have strong credit (720+) and substantial reserves
• Target properties have solid cash flow (DSCR 1.15+)
• Your strategy prioritizes velocity and portfolio growth
• You can manage the higher monthly payments
• Market conditions support property appreciation

By carefully evaluating the trade-offs between down payment size, interest rates, cash flow, and overall returns, you can make strategic financing decisions that accelerate your real estate investing success while maintaining financial stability.

The key is finding the right balance between leverage and sustainability—maximizing property acquisitions without overextending yourself financially. With the right lender partner and disciplined approach, low down payment DSCR loans can be the catalyst for building substantial real estate wealth.