Can you get a DSCR loan with no money down or bad credit?
Reviewed by Dominick Prevete, Founder & CEO, National Loan Provider31+ years in real estate finance
Can you get a DSCR loan with no money down?
No. Every DSCR purchase Dominick Prevete arranges needs cash for the down payment, at least 15% on the strongest files, plus 3 months of payments in reserves. The down payment doesn't have to be your own money, though: the lenders he places with accept all of it as a gift from family. The reserves do have to be yours.
What a gift from family needs
A gift needs two things on paper: a signed gift letter from the family member, and a paper trail showing the money move from their account to yours. The DSCR loan documents checklist covers how an underwriter sources the rest of your funds.
The down payment on this Marion, Massachusetts two-family purchase was a gift from family.
- Property
- 2-unit, Marion, MA
- Purpose
- DSCR purchase
- Loan amount
- $305,000
- Leverage
- 43.6% LTV
- DSCR
- 1.805
- Closed
- October 2025
Can you get a DSCR loan with bad credit?
Credit sets the terms on a DSCR loan more than the yes or no. The loan qualifies on the property's rent, not your income, so weaker credit usually means less leverage and a higher rate rather than a denial. Lenders look hardest at your recent mortgage payment history, and a foreclosure or short sale generally needs to be at least 36 months behind you.
Pre-approved in minutes. No hard credit pull at application.
There's no single credit cutoff to quote you. Send the deal and Dominick will tell you what it supports.
Frequently asked questions
Can my parents give me the down payment for a DSCR loan?
Yes. Lenders Dominick Prevete places with accept 100% of the down payment as a gift from family, documented with a gift letter and the transfer. Gift money can't count toward the 3 months of reserves; those have to be your own funds.
What's the smallest down payment on a DSCR purchase?
15% on the strongest files. Weaker credit or a lower DSCR usually means more down.
How long after a foreclosure or short sale can I get a DSCR loan?
Generally 36 months from the event.
Does applying hurt my credit?
Not at pre-approval. Pre-approved in minutes. No hard credit pull at application. The full application, including credit, comes later. Dominick's borrowers learn which lender is funding the loan right after the full application, including credit, is complete.
Is there a DSCR loan with no down payment at all?
Not on a purchase. On a refinance there's no down payment, and cash-out proceeds can count toward reserves.
Related: the DSCR loan requirements, the DSCR cash-out refinance and the DSCR calculator.
Reviewed by Dominick Prevete, Founder & CEO, National Loan Provider31+ years in real estate finance