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DSCR · Credit

DSCR Loan With a 620 Credit Score

Your score is in the 620s and you want to buy or refinance a rental. Here is what a DSCR loan looks like at that credit tier, and how to make the numbers work.

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In short: Yes. 620 is the minimum credit score on our DSCR rental programs, so a 620–679 score can qualify for a purchase or refinance on a non-owner-occupied rental. Expect a lower maximum loan-to-value than borrowers with 700+ scores, a higher rate, and often more cash reserves. The property still needs rent that covers the payment, typically at a 1.0x DSCR or better.

Why a 620 score still works on a DSCR loan

A DSCR loan qualifies the property, not your paycheck. The core question is whether the rent covers principal, interest, taxes, insurance and any HOA dues.

Credit still matters, but it moves the terms rather than deciding the whole file. That is why many investors in the 620s get approved here after being turned away by a bank that wanted tax returns and a low debt-to-income ratio.

About 30% of the investors who contact us have scores between 620 and 679. It is a normal part of our business, not an exception.

How terms usually shift by credit tier

Every program sets its own grid, so treat this as a general picture. The pattern is consistent: lower scores mean less leverage and more cost.

Credit scoreMax leveragePricingReserves
740+Up to 80% LTV purchase, 75% cash-outBest available tiersLightest requirement
700–739Often full leverageSmall step upStandard
660–699Often trimmed on cash-outModerate step upStandard to higher
620–659Commonly 5–10 points lower LTVHighest tierOften more months required

Worked example: a $300,000 rental at a 625 score

This is an illustrative example, not a quote. Assume a single-family rental priced at $300,000, a 625 score, and a program that caps leverage at 75% LTV for that tier.

The loan is $225,000 and the down payment is $75,000 plus closing costs. At an assumed rate for illustration, principal and interest run about $1,575 a month. Add $450 for taxes and insurance and the full payment is about $2,025.

Market rent is $2,400, so the DSCR is about 1.19. That clears a 1.0x minimum with room to spare, which helps offset the lower score.

What helps a 620-tier file the most

You cannot change your score overnight, but you can strengthen everything around it.

Credit events that matter more than the number

Underwriters look past the score at what caused it. High card balances are viewed very differently from a recent foreclosure.

Foreclosures, short sales, bankruptcies and deed-in-lieu events usually carry waiting periods. These vary by program and commonly run from one to several years. Open tax liens or judgments generally need a plan to clear at or before closing.

Purchase vs refinance at a 620 score

A purchase at 620 is usually the simpler file. You bring the down payment, the rent supports the payment, and the credit tier sets the price.

A cash-out refinance at 620 tends to see the biggest leverage cut, because the program is lending against equity rather than a fresh purchase price. A rate-and-term refinance often sits between the two. If you plan to buy now and pull cash later, build the lower cash-out limit into your plan from the start.

Should you wait to raise your score?

Sometimes yes. If you are a few points from a tier break, paying down a card balance before we pull credit can improve your pricing.

But waiting has a cost too. A good deal can disappear while you chase 20 points. Our financing team can show you 2–3 options at your current score so you can compare the real numbers before deciding.

Common questions

What is the minimum credit score for a DSCR loan?

Our DSCR programs start at a 620 middle score. Some specialty programs differ, but 620 is the common floor across most DSCR lending.

Can I get a 30-year fixed DSCR loan with a 620 credit score?

Often, yes. A 30-year fixed term is available on many DSCR programs at the 620 tier, though the rate will be higher than for stronger scores.

Does a DSCR lender use my middle score or my lowest score?

Most use the middle of your three bureau scores. With multiple guarantors, many programs use the lowest middle score among them, though this varies.

Will a DSCR loan hurt my credit?

The application includes a credit inquiry, which can cause a small, temporary dip. Some DSCR loans held in an LLC may not report to your personal credit, but that depends on the program.

Can I do a cash-out refinance with a 620 score?

Yes, cash-out is possible at 620 on many programs. Expect the maximum cash-out LTV to be trimmed compared with the 75% available to higher scores.

Can I use an LLC for a DSCR loan with a 620 credit score?

Yes. LLC borrowing is allowed on our DSCR programs, and the credit score used is the guarantor’s. Your score tier applies the same way whether you close personally or in an entity.

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