Most DSCR financing requires 20–25% down. The exact number depends on your credit tier, the property’s debt service coverage ratio, and the type of deal you’re bringing to a lender. Here’s how each of those factors works—and what Massachusetts investors should plan for before submitting a file.
Most DSCR lenders set the floor somewhere around 660, but that number alone is misleading. Where you fall in the credit tier structure determines your interest rate, maximum loan-to-value, and how many lenders will actually compete for your deal.
If you’re financing a rental property in Massachusetts, you have two main paths: a conventional mortgage that qualifies you based on personal income, or a DSCR loan that qualifies based on the property’s rental income. The right choice depends on your financial profile, how many properties you own, and how you plan to scale. Here’s a direct comparison.
The debt service coverage ratio on a rental property is one number every investor should know before picking up the phone. If you understand what a DSCR loan is and how the formula works, you walk into a lender conversation with leverage instead of guesswork.