The Quick Read: Usually 20% to 25% down on a purchase, which means 75% to 80% loan-to-value, and Missouri follows the same tiers as every other state. Select high-leverage programs reach 85% loan-to-value (about 15% down) for borrowers around a 700 credit score or higher. Every file stays subject to lender guidelines and the property’s rental coverage.
- Most purchase files across the network land at 75% to 80% loan-to-value.
- A cash-out refinance on a standard rental tops out around 75% loan-to-value.
- Short-term rentals run lower leverage than long-term rentals.
- Credit score and rental coverage change your leverage tier and pricing, though a stronger ratio alone does not raise the cap.
- Budget closing costs, prepaids, and reserves on top of the down payment.
What the Numbers Look Like by Transaction
The down payment is simply 100% minus the loan-to-value (LTV), and LTV is set by the program’s matrix. That matrix changes with transaction type, credit score, rental coverage, and property type. Lendmire is a mortgage broker, and the wholesale network it places files with includes many lenders. Across those lenders the pattern is consistent, even though no single number applies to everyone.
DSCR Calculator
Run the numbers in Missouri
Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Oct 15, 2026
Prefilled with starting assumptions — enter your own rent or nightly figures, taxes, insurance, and HOA for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Oct 15, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Rent, nightly rate, occupancy, taxes, and insurance are editable estimates. Short-term rental figures are estimates only and vary significantly by season, property type, management approach, and local short-term-rental rules — confirm local regulations before relying on them. Qualifying income for short-term rentals varies by program — some use appraisal market rent, others use documented STR history or projections — and is confirmed in underwriting. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
| Transaction | Typical max LTV | Typical down payment |
|---|---|---|
| Purchase, standard rental | 75%–80% | 20%–25% |
| Purchase, select high-leverage | Up to 85% | About 15% (700+ score) |
| Cash-out refinance, standard rental | Around 75% | Equity of 25%+ stays in |
| Short-term rental purchase | Up to 75% | 25% or more |
| Short-term rental cash-out | 70% | 30% equity stays in |
The 85% tier is the exception, not the baseline. It is not available on every file, and the borrower needs strong credit to reach it. Treat 20% to 25% as the planning number, because that is where most approved purchases land.
Does Missouri Change the Answer?
No. The standard purchase tiers above apply here as they do in every other state, and the guideline set carries no Missouri-specific LTV overlay. Pages that label themselves “Missouri DSCR loans” mostly repeat the national range of roughly 20% to 30%. Nothing in a state rule sets a different minimum.
Missouri does matter in a quieter way. Property taxes and insurance are part of the monthly obligation your rent must cover. Higher carrying costs lower your coverage ratio, and a lower ratio can narrow your leverage options. You do not need a state-specific figure to see this. Run your own tax and insurance quotes before you pick a purchase price.
How Does Your Down Payment Connect to the DSCR?
A larger down payment can lift your coverage ratio, but it does not replace the other tests. DSCR stands for debt service coverage ratio. You calculate it by dividing the property’s monthly rent by the monthly PITIA, which is principal, interest, taxes, insurance, and any association dues. Put more down and the loan shrinks, so the payment shrinks and the ratio rises.
Run the numbers on a modeled purchase with coverage of about 1.05x at 80% LTV. Moving to 70% LTV could push the same property toward 1.10x or so, because only the loan-driven part of the payment falls. Taxes and insurance stay put. This is an illustration, not a quote. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Three limits stay in place no matter how much cash you bring:
- Leverage caps. A program that stops at 80% LTV will not go higher because your ratio is strong.
- Credit floors. A 620 score is accepted in parts of the network, but most programs want around 660, and 700 or higher opens the strongest leverage tiers.
- Property and reserve rules. The property must be eligible and you must hold the required reserves.
Many borrowers assume a great ratio buys them a lower down payment. More often it improves pricing and approval odds, not the maximum LTV. The strongest files clear both tests: enough equity and enough rental coverage.
DSCR also compares rent to PITIA only. Clearing 1.00 does not mean the property produces positive cash flow. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation, so size your reserves with those in mind. Lendmire’s complete DSCR loans guide walks through the ratio in more detail.
What Moves Your Down Payment Up or Down
Five factors do most of the work, and the network’s lenders weigh them differently.
Credit score. The 700-plus tier is where high-leverage options appear. Below roughly 660, expect fewer lenders and tighter leverage.
Rental coverage. 1.00 is where many select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted, which usually means more cash down. Some files with no ratio test are also available through select lenders, generally for borrowers who already own a primary residence.
Property type. A single-family rental, a duplex, and a fourplex are common purchases. Manufactured homes, log homes, and barndominiums are not offered in the network.
Short-term rental income. Short-term rental purchases are capped at 75% LTV, and refinances run around 70%. Expect a 640 or higher credit score and about 12 months of hosting history. Coverage starts at 1.00 for these loans, on purchases and refinances alike. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Loan size. Standard programs cover up to $3,000,000 (smaller balances available through select lenders). Above $2,500,000, the network generally holds to 30-year fixed structures. Reserves also tend to step up as the balance grows.
For a deeper look at how the pieces fit, see what a DSCR loan down payment requirement covers.
Down Payment Is Only Part of Your Cash to Close
Budget the down payment, closing costs, prepaid items, and reserves as four separate lines. Prepaids are the taxes and insurance collected up front. Reserves are liquid funds the lender wants left over after closing, commonly around 6 months of PITIA.
Reserves vary by lender, leverage, loan size, and transaction type. Conservative rate-and-term files at modest leverage under $1,500,000 can see reserves waived. Loans above that size typically step up to about 9 months. An investor who plans for the down payment alone often finds the reserve requirement is what stops the file.
Because DSCR loans skip the personal debt-to-income test, income is not your scarce resource. Liquidity is. The down payment plus reserves is the real gate.
Where Your Down Payment Can Come From
The funds should be sitting in your own account, documented and traceable. Lenders generally want to see the down payment, closing costs, and reserves in a checking or savings account before you apply. Large recent deposits will draw questions, so keep a paper trail.
Programs differ on borrowed funds and gifts. Some accept a gift with a minimum borrower contribution, and some do not. Others restrict borrowed down payments entirely. Ask before you draw on any credit source, because a plan built on borrowed money can fail on this point alone. Disclose the source up front rather than letting the lender discover it.
Cash-out proceeds from another property are a common source for the next purchase. Cash-out refinances top out around 75% LTV on standard rentals across most of the network, and about 6 months of seasoning is the common expectation. Seasoning is the waiting period between buying a property and refinancing it. Lendmire’s explainer on DSCR loans with no down payment options covers funding sources in more depth. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Can You Get a DSCR Loan With No Down Payment?
No. Zero-down is not available on standard DSCR programs, and a 10% down plan is rare enough to treat as unavailable. The highest leverage most borrowers will see is the 85% LTV tier at about 15% down, and that tier needs strong credit and a qualifying property.
Lower-down structures from other loan types do not carry over. Programs with very low down payments are built for owner-occupied homes. A DSCR loan is for a non-owner-occupied rental and qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, so those owner-occupant structures do not apply.
Why the Business-Purpose Label Matters
DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. The federal rulemaking on ability-to-repay says business-purpose loans are not covered by those consumer provisions. Compliance commentary adds that exemption depends on loan purpose, occupancy, and unit count. The practical result is that no government standard sets a minimum down payment. Each lender sets its own, which is why the range runs from lender to lender.
Leverage or Liquidity: Making the Decision
This one is a genuine tradeoff. Lower down payments preserve cash for the next deal, but they can leave coverage thin and pricing less favorable. Higher down payments lift coverage, though they slow how fast you can add doors.
A plan to put 25% down on every purchase eventually drains cash, especially once reserves are counted on each loan. Many investors hit that wall well before they reach double-digit door counts unless they recycle equity. That is where a cash-out refinance on a seasoned rental can fund the next purchase, within the 75% LTV ceiling. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
A simple way to decide:
1. Price the deal at 75% to 80% LTV and check whether coverage clears your target.
2. If coverage is thin, test a larger down payment before you test a different lender.
3. If cash is tight, ask whether your credit profile reaches the 85% tier, and confirm the property qualifies.
4. Keep reserves in view. A deal that closes but leaves you with no cushion is a risky deal. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
DSCR vs. conventional financing
There are two common ways to finance an investment property, and they qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
Key Terms Defined
LTV (loan-to-value): the loan amount divided by the property’s price or value. A lower LTV means a bigger down payment.
DSCR (debt service coverage ratio): monthly rent divided by the monthly PITIA. A result above 1.00 means rent covers the payment.
PITIA: principal, interest, taxes, insurance, and any association dues, which together form the monthly obligation.
Reserves: liquid funds you hold after closing, commonly measured in months of PITIA.
Seasoning: the waiting period a lender wants between buying a property and refinancing it.
Non-QM: a loan that does not follow standard consumer-mortgage underwriting, which is where DSCR loans sit.
Frequently Asked Questions
What is the minimum down payment on a DSCR loan?
On most purchases it is 20% to 25%, which matches 75% to 80% LTV. Select high-leverage programs go to 85% LTV, or about 15% down, typically with a 700 or higher score. Short-term rental purchases are capped at 75% LTV. Every file is underwritten individually.
Will a higher DSCR let me put less down?
Usually not. A stronger ratio tends to improve pricing and approval odds, but the maximum LTV is set by the program matrix and your credit score. Putting more down can raise the ratio, which is a separate lever.
Can I use a gift or borrowed money for the down payment?
It depends on the program. Some accept gifts with a minimum borrower contribution, and others do not allow borrowed funds. Ask before you commit to a funding plan, and disclose the source from the start.
Are the rules different in Missouri than in other states?
No. The network applies the same purchase tiers in Missouri, and no state-specific LTV overlay is in force. Local taxes and insurance still affect your coverage ratio, which can influence the leverage you qualify for.
How much cash should I have beyond the down payment?
Plan for closing costs, prepaids, and reserves. Reserves commonly run around 6 months of PITIA and can step up to about 9 months on loans above $1,500,000. Conservative rate-and-term files at modest leverage under that size can see reserves waived.
If you are buying or refinancing a rental property and want to see how the numbers work, Lendmire can help you compare DSCR loan options based on the property income, credit profile, leverage, and investor goals. Lendmire arranges these loans as a broker through select lenders across 41 markets, including Washington, D.C. Qualification is subject to lender guidelines and is not a commitment to lend.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage focused on investor financing, arranging DSCR loans in 40 states plus Washington, D.C. — 41 markets total. Qualification is based on the property’s income rather than personal income documentation, subject to lender guidelines, making it a fit for LLC-held rentals and scaling portfolios. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Federal Register – Ability-to-Repay and Qualified Mortgage Standards Final Rule
2. Compliance Alliance – Regulation Z and Investment Properties
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Does a DSCR Loan Require a Credit Check and Does It Affect Your Score? · How Much Down Payment Does a DSCR Loan in Massachusetts Require? · How Much Down Payment Does a DSCR Loan in New Jersey Require?
Guides: DSCR Loans in Missouri
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.