85% LTV DSCR loans
85% LTV DSCR loans: buy a rental with 15% down.
A 30-year DSCR purchase loan for up to 85% of the price, qualified on the property’s rent instead of your tax returns. The box is narrow — 740+ credit, DSCR 1.10 or higher, loans of $250,000 to $2,000,000 — and the loan prices about 0.75% above the same file at 80%. The full requirements and the arithmetic are below, so you can decide whether the smaller down payment is worth it.
Who qualifies for 85% LTV
Every line below has to be true. There are no exceptions on this program; a file that misses one point is priced on the standard DSCR terms instead, up to 80%.
- Credit: 740 or higher, middle of three scores. No bankruptcy, foreclosure or deed-in-lieu in the last three years.
- DSCR 1.10 or higher on a long-term rental, 1.25 or higher on a short-term rental, 1.00 for property in California.
- Loan amount: $250,000 to $2,000,000.
- Purchase only. Refinances stop at 80% rate-and-term and 75% cash-out — see the DSCR cash-out refinance.
- 30-year fixed, 5/6 ARM or 7/6 ARM. No interest-only. No balloon.
- Reserves: six months of the full payment (PITIA), verified, on top of cash to close.
- Seller credit: up to 3% of the price.
- Short-term rentals: experienced investors only. First-time investors can finance a vacation rental at standard leverage, not at 85%. See the short-term rental loan page.
- Borrower: an individual, LLC, corporation or limited partnership. US citizens and permanent residents, up to two individual borrowers.
- Property: 1–4 unit homes (up to two ADUs), townhomes and condos. Non-owner-occupied, no family occupancy, condition C1–C4, up to 5 acres, not listed for sale in the last 30 days.
85% program snapshot
- Max LTV, purchase
- 85%
- Down payment
- 15% plus closing costs
- Min FICO
- 740
- Min DSCR
- 1.10 (1.25 short-term, 1.00 CA)
- Loan size
- $250k – $2M
- Term
- 30 years, no balloon
- Structures
- 30-year fixed, 5/6 or 7/6 ARM
- Interest-only
- Not available
- Reserves
- 6 months PITIA plus cash to close
- Pricing
- About 0.75% above 80%
The math: 85% against 80% on a $400,000 rental
Same property, same 740+ borrower, 30-year amortization. Property taxes $350 a month, insurance $150, no HOA. The two rates are round illustrative numbers set 0.75% apart, which is the typical gap between the two options. They are not a quote; your file is priced on the day.
| $400,000 purchase | 80% LTV | 85% LTV |
|---|---|---|
| Loan amount | $320,000 | $340,000 |
| Down payment | $80,000 | $60,000 |
| Illustrative rate | 7.75% | 8.50% |
| Principal and interest | $2,293 | $2,614 |
| Full payment (PITIA) | $2,793 | $3,114 |
| Minimum DSCR | 1.00 | 1.10 |
| Rent needed to qualify | $2,793 | $3,426 |
| Reserves, 6 months PITIA | $16,755 | $18,686 |
| Down payment plus reserves | $96,755 | $78,686 |
| Interest, first 12 months | $24,702 | $28,801 |
What the extra 5% costs
The 85% loan leaves $18,069 more of your cash free at closing: $20,000 less down payment, less the $1,931 of extra reserves that the larger payment requires.
It costs $321 more a month and about $4,100 more interest in the first year — the higher rate applies to the whole balance, not just the extra $20,000. That is roughly 20% a year for the use of that $20,000. The rent also has to clear $3,426 a month instead of $2,793.
So the question is not whether 85% is available. It is whether the cash you keep earns more than about 20% a year somewhere else.
When 85% makes sense
- The cash you keep has a job: the down payment on the next rental, a rehab budget, or the deposit on a deal already under contract.
- The rent clears DSCR 1.10 with room to spare, so a higher insurance quote late in the process does not sink the file.
- You plan to hold. Choosing a prepayment option lowers the rate, while no penalty at all adds about 1.00% to it.
When to take 80% instead
- The rent only just covers the payment. 80% needs DSCR 1.00; 85% needs 1.10.
- Your middle score is 700–739. Standard terms reach 80% on a purchase from 700.
- The property is in one of the excluded markets below, or the loan is under $250,000.
Where 85% is not available
The program runs in the 40 states we cover, except in markets the lender classes as declining and in these specific counties and cities. In them, the standard DSCR terms still apply, up to 80%.
| State | Excluded |
|---|---|
| Florida | Sarasota, DeSoto, Charlotte, Lee, Collier and Miami-Dade counties |
| Texas | Travis, Williamson, Hays, Bexar, Medina, Comal, Nueces, San Patricio and Kleberg counties (Austin, Round Rock, San Antonio, Corpus Christi) |
| Colorado | Denver, El Paso, Pueblo, Boulder and Larimer counties |
| Tennessee | Sevier County (Sevierville, Pigeon Forge) |
| Oklahoma | McCurtain County (Broken Bow) |
| Michigan | Wayne County and Flint |
| Indiana | Lake County |
| Ohio | Cuyahoga County |
| Maryland | Baltimore |
| Pennsylvania | Philadelphia County |
What to send for an 85% quote
Eight items get you a real answer on whether the file fits the box. Nothing is pulled and nothing is charged.
- Property address
- Purchase price and seller credit, if any
- Monthly market rent, the lease, or short-term rental revenue
- Annual property taxes
- Annual insurance premium
- HOA dues, if any
- Your middle credit score range
- How many rentals you own, and the cash you have for down payment and reserves
What the lender charges
On this program the lender charges an underwriting fee of about $1,995 and origination of 0% to 3% — zero if you take the rate as priced, or 0.5 to 3 points to buy it down (each half-point is worth roughly 0.125% in rate). Fees are itemised on the lender’s disclosure before you commit.
We charge you nothing. No application fee, no processing fee, no upfront fee of any kind. We are paid by the lender when the loan closes.
Timeline
About 30 days from the appraisal order on a typical file. Credit is valid for 90 days, so there is no rush to pull it before the deal is real. Current pricing for every program is on the rates page.
85% LTV DSCR loan questions
Can you get a DSCR loan with 15% down?
Yes, on a purchase: 740+ credit, DSCR 1.10 or higher (1.25 on a short-term rental, 1.00 in California), a loan of $250,000 to $2,000,000, and six months of reserves plus cash to close. Closing costs are on top of the 15%; a seller credit of up to 3% can cover part of them.
Can I refinance at 85% LTV?
No. 85% is for purchases only. A rate-and-term refinance goes to 80% and a cash-out refinance to 75%, with 700+ credit.
How much higher is the rate at 85%?
About 0.75% above the same loan at 80% on the same credit. On a $400,000 purchase at the illustrative rates above, that is $321 more a month and about $4,100 more interest in the first year.
Is interest-only available at 85% LTV?
No. The 85% program is a 30-year fixed, 5/6 ARM or 7/6 ARM, fully amortizing, with no balloon.
Can I use 85% on an Airbnb or other short-term rental?
Yes, if you are an experienced investor and the short-term rental income gives a DSCR of 1.25 or higher. It is not open to first-time investors on short-term rentals. Short-term rentals also carry a 0.25% rate add-on.
Which markets are excluded?
Markets the lender classes as declining, plus specific counties in Florida, Texas, Colorado, Tennessee, Oklahoma, Michigan, Indiana, Ohio, Maryland and Pennsylvania, listed in the table above. Standard terms up to 80% still apply there.
Easy Lending USA is not a lender, a bank, or a mortgage broker. We introduce real estate investors to independent private lenders, who make every credit decision. Business-purpose loans only, to real estate investors, secured by non-owner-occupied property. Every figure on this page is indicative, subject to underwriting, and not a commitment to lend. No upfront fees of any kind.