Most DSCR purchases start around 20–25% down. See how LTV, credit, and property type change cash needed for Indiana investors.
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DSCR Down Payment
Most DSCR purchases land around 20–25% down — with LTV, credit, DSCR strength, and property type shifting how much cash you need at closing.
DSCR loans price and approve around loan-to-value as much as the rent coverage ratio. A larger down payment lowers monthly PITIA, which can lift DSCR and unlock better rate tiers — even when the purchase price stays the same.
Plan for down payment plus closing costs and post-close reserves. Investors who only budget the down payment often scramble when reserve overlays show up late in underwriting.
Minimum down payments and max LTVs are investor-specific and can change with market conditions.
The same purchase price can require very different cash depending on the file.
We model down payment, estimated closing costs, and reserve months together — not as separate surprises.
On a $280,000 Indiana rental, 20% down is $56,000 before costs. At 25% down, cash rises to $70,000 — but the lower payment can improve DSCR and pricing enough that the monthly carry is stronger for the next refinance.
We run your real rent, taxes, insurance, and HOA so you see cash-to-close and coverage side by side before you write the offer.
1. Target purchase price and estimated rent
2. Available liquid funds (not just "in the market")
3. Preferred LTV vs. rate priority
4. Property type and STR vs. long-term use
5. Reserve months still left after closing
Related DSCR guides and investor resources from Ryan & Steve.
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Ryan & Steve will size down payment, costs, and reserves against current DSCR LTV tiers for your deal.