Minimum Credit Score for a DSCR Loan

Most DSCR lenders require a minimum 620 FICO score to qualify for a loan. Some programs have raised this floor to 640 or even 660, particularly for higher LTV loans. Programs requiring a 620 minimum are still available but become more limited as credit tiers tighten.

The middle score of the three major bureaus (Experian, Equifax, TransUnion) is typically used. If you have two borrowers on the loan, lenders generally use the lower of the two middle scores.

How Credit Score Affects Your DSCR Loan Rate

Credit score is the single biggest pricing variable after LTV. Expect pricing tiers roughly like this:

• 760+ FICO — Tier 1 pricing; best available rate
• 740–759 — Small add-on (~0.125%)
• 720–739 — Modest add-on (~0.25%)
• 700–719 — Moderate add-on (~0.375%)
• 680–699 — Significant add-on (~0.5%)
• 660–679 — Large add-on (~0.75%)
• 640–659 — Maximum add-on; fewer programs available
• 620–639 — Very limited programs; higher rate and lower LTV caps

Moving from a 660 to a 720 credit score can save 0.5-0.75% in rate — on a $400,000 loan, that's

00 per month in interest cost.

Credit Score and LTV Interaction

Lower credit scores also reduce the maximum LTV you can achieve:

• 700+ credit score → up to 80% LTV (20% down)
• 680-699 → up to 75% LTV (25% down)
• 660-679 → up to 70% LTV (30% down)
• 640-659 → up to 65% LTV (35% down)

At a 620 credit score, some programs require 35% or more down and impose additional rate add-ons. The combination of lower LTV and higher rate significantly increases the capital required per property.

What Counts as a "DSCR Credit Score"

DSCR lenders pull a tri-merge credit report (all 3 bureaus). The qualifying score is the middle of the three bureau scores for a single borrower. For two or more borrowers, the lower of the two borrowers' middle scores is used.

FICO Score 8 or FICO Score 9 is most commonly used, though some lenders reference other score models. The score used for rate determination is specified in your Loan Estimate.

How to Improve Your Credit Score Before Applying

• Pay down revolving balances — Credit utilization (balance ÷ limit) is the fastest-moving factor. Getting card balances below 10% of limits can add 20-50 points.
• Dispute errors — Pull your full credit reports at AnnualCreditReport.com. Incorrect late payments or collection accounts can be disputed and removed if inaccurate.
• Avoid new credit applications — Each new hard inquiry costs 5-10 points. Don't apply for new credit in the 90 days before your DSCR application.
• Keep old accounts open — Average account age affects your score. Don't close old credit cards, even unused ones.
• Become an authorized user — Being added to a spouse's or partner's well-managed card can boost your score if their history is better than yours.

If Your Score Is Below 620

If your credit score is below 620, a DSCR loan from a standard lender isn't currently available. Options include:

• Hard money loans — Asset-based lending with minimal credit requirements (often 550+), typically short-term (12-24 months)
• Private lenders — Individual investors who lend at higher rates with flexible credit standards
• Credit repair + waiting period — Focus on credit improvement for 6-12 months, then apply for DSCR