What's the minimum for a DSCR loan?

The minimums most lenders set: a DSCR of 1.0, meaning rent covers the full payment; a credit score of 620 to 680; a down payment of 20 to 25%; a loan amount of $75,000 to $150,000; and reserves of three to six months of the payment. Some lenders go below a 1.0 ratio with more down and a higher rate.

The ratio has the most exceptions. Standard programs require 1.0 and price best at 1.25; a minority accept 0.75 with 30 to 35% down, and no-ratio programs skip it at a lower loan-to-value and higher rate.

Loan minimums exclude very cheap properties: a $60,000 house usually cannot get a DSCR loan. Property rules apply too: one to four units, habitable, not rural or manufactured. The minimums stack, so a 660 score with a 1.05 ratio may need 30% down where a 740 score with a 1.3 ratio needs 20%.