Quick Answer
Minimum 620 credit score for DSCR loans. 640-679 gets good rates (7.0-8.0%). 680-699 gets great rates (6.5-7.5%). 700+ gets best rates starting at 5.99%.Lower scores require larger down payments (25-30%) but approval is still possible. Some lenders accept 600-619 with compensating factors.
What Credit Score Do I Need for a DSCR Loan?
Credit Score Requirements by Tier
Best available rates and terms. Can get 20% down with excellent terms.
Great rates. Most lenders prefer 25% down for best pricing.
Solid approval odds. 25% down typically required.
Approved with compensating factors. May need higher DSCR (1.25+).
Requires strong DSCR and larger down payment.
Minimum score. Needs 30% down and 1.25+ DSCR for approval.
Case-by-case basis. Requires exceptional compensating factors.
How Credit Score Affects Your Loan
Interest Rate
Every 20 points = ~0.25-0.50% rate difference. 740 vs 640 = 1.5-2.0% rate difference.
Down Payment
Lower scores require larger down payments. 700+ can do 20%, 620-699 typically need 25-30%.
Approval Odds
Higher scores approve easier. Lower scores need compensating factors (high DSCR, large down).
Real Cost Comparison
Same property, different credit scores. See how much credit score impacts your monthly payment:
💡 120-Point Difference = $244K More in Interest
Improving credit from 620 to 740 saves $678/month and $244,080 over 30 years on a $400K loan.
How to Improve Your Score
Quick Wins (30-60 days):
- • Pay down credit cards below 30% utilization (+20-30 points)
- • Dispute any errors on credit reports (+10-50 points)
- • Become authorized user on spouse/parent's old card (+10-20 points)
- • Pay off small collections under $500 (+10-15 points)
Medium-Term (3-6 months):
- • Make all payments on time (no late payments!)
- • Don't apply for new credit (hard inquiries drop score)
- • Keep old accounts open (length of history matters)
- • Target 10% credit utilization or less
Long-Term (6-12 months):
- • 12+ months perfect payment history
- • Diversify credit mix (installment + revolving)
- • Consider credit repair service if needed
- • Target 740+ for maximum savings
Check Your Rate
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