What credit score do you need for a DSCR loan?
Most DSCR lenders set a minimum credit score of 660, with a few going to 640 or 620 at lower leverage, and the best pricing usually starts at 740. A recent mortgage or rent late payment matters more than the number: a 720 with a 30-day mortgage late in the last year is often declined where a 680 with clean housing history is approved.
The typical grid
| Middle score | How lenders treat it |
|---|---|
| 760 and above | Best rate, maximum leverage |
| 740 to 759 | Best or near-best rate |
| 700 to 739 | Standard pricing, full leverage with most lenders |
| 680 to 699 | Small rate bump, leverage often capped at 75 percent |
| 660 to 679 | Rate bump of a half point or more, leverage 70 to 75 percent |
| 640 to 659 | A minority of lenders, leverage 65 to 70 percent |
| 620 to 639 | Very few lenders, hard money is often the alternative |
Ranges vary by lender and move over time. The score used is your middle score of three, or the lower middle score when there are two borrowers.
What lenders read beyond the number
Housing history. Twelve to 24 months of mortgage and rent payments with no 30-day lates is the single most important line on the report for a DSCR lender.
Recent events. Bankruptcy, foreclosure, short sale, or deed in lieu usually need two to four years of seasoning depending on the lender.
Utilization. High card balances drag the score down and are the fastest thing to fix.
Tradelines. Lenders want to see at least two or three open accounts with history. A thin file can be declined at any score.
Moving up a tier before you apply
- Pay revolving balances below 30 percent of their limits, ideally under 10 percent. This often moves a score 20 to 50 points within a cycle.
- Do not close old accounts or open new ones in the 60 days before applying.
- Dispute reporting errors on all three bureaus.
- Ask the lender for a rapid rescore if a paid balance has not updated yet.
What a lower score costs
On a $400,000 loan, the spread between a 680 and a 760 file is often a half to one full point in rate, roughly $2,000 to $4,000 a year in interest, plus five points less leverage. That gap is usually cheaper than waiting six months if the deal is good, and more expensive than waiting if it is marginal.
How CommFi handles it
Our lending desk reads the report and the deal together and prices what is possible today. When the file needs a lender that works at your score, the desk searches a database of 7,000+ lenders and the ones that fit compete for it. Zero upfront fees.
Related reading
Related questions
- What is the minimum credit score for a DSCR loan?
- 660 with most lenders. Some accept 640, and a few go to 620 with lower leverage and a higher rate.
- Which credit score do DSCR lenders use?
- The middle of your three bureau scores. With two borrowers, the lower of the two middle scores.
- Do DSCR lenders check housing payment history?
- Yes, closely. A 30-day mortgage or rent late in the last twelve months is a frequent reason for a decline even with a good score.
- How long after a bankruptcy can I get a DSCR loan?
- Typically two to four years, depending on the lender and the chapter. Some lenders shorten that with a larger down payment.
- Can I improve my score quickly before applying?
- Paying card balances down under 30 percent of limits is the fastest lever, and a rapid rescore through the lender can update the report in days.
Property developer and licensed appraiser. 22+ years in real estate: TIC conversions, multi-unit redevelopments, mixed-use, fix and flips, commercial DSCR.