DSCR Loan 620 Credit Score: How to Get Approved in California
Having a 620 credit score doesn't have to stop you from investing in California real estate. While traditional lenders might turn you away, DSCR loans offer a path to property ownership that focuses on the investment's income potential rather than just your credit history. This guide shows you exactly how to get approved and what to expect with a 620 credit score.
The 620 Credit Score Reality
A 620 credit score is the minimum for most DSCR lenders, putting you right at the threshold. While you'll face some limitations compared to higher-score borrowers, approval is absolutely possible with the right strategy and property selection.
What a 620 Credit Score Means for DSCR Loans
The Good News
- ✓You meet minimum requirements
- ✓Multiple lenders will work with you
- ✓No income verification needed
- ✓Property income drives approval
- ✓Can improve terms over time
The Challenges
- •Higher interest rates (1-2% more)
- •Larger down payment (25-30%)
- •Stricter DSCR requirements
- •More reserves needed
- •Fewer lender options
DSCR Loan Requirements with 620 Credit Score
Minimum Requirements
- Down Payment: 25-30% minimum
- DSCR Ratio: 1.2+ strongly preferred
- Reserves: 6-12 months PITIA
- Seasoning: 6+ months since major derogatories
What You Can Expect
- Interest Rates: 8.5-9.5% typical
- Max Loan: $2M (varies by lender)
- Property Types: SFR, 2-4 units, condos
- Prepayment: 3-5 year penalties common
Interest Rate Comparison by Credit Score
| Credit Score | Typical Rate | Monthly Payment* | Total Interest* |
|---|---|---|---|
| 740+ | 7.25% | $3,398 | $723,280 |
| 680-739 | 7.75% | $3,583 | $789,880 |
| 620-679 | 8.75% | $3,933 | $915,880 |
*Based on $500,000 loan amount, 30-year fixed. Your rate may vary based on other factors.
Common Questions: 620 Credit Score DSCR Loans
Is 620 really enough for a DSCR loan?
Yes, 620 is the true minimum for many DSCR lenders. However, you'll need to compensate with a larger down payment (25-30%), strong property cash flow (1.2+ DSCR), and adequate reserves. Some lenders may require 640-660, so working with a broker helps.
How much more will I pay in interest with 620 credit?
Expect rates 1.5-2% higher than borrowers with 740+ credit. On a $500,000 loan, that's roughly $400-500 more per month. However, the property's cash flow often covers this difference, and you can refinance after improving your credit.
Should I wait and improve my credit first?
It depends on your goals. If you can improve to 660+ within 3-6 months, waiting might save money. However, if you've found a great property with strong cash flow, the opportunity cost of waiting might exceed the higher interest rate.
Ready to Invest with Your 620 Credit Score?
Don't let credit challenges stop you from building wealth through real estate. Our team specializes in helping investors with credit scores as low as 620 get approved for DSCR loans.
We've Helped 620 Score Borrowers:
Investors Approved
Funded with 620-679 Credit
Average Pre-Approval Time
620 minimum credit score • No income verification • Close in 21-30 days