The Quick Read: Usually 20% to 25% of the purchase price, which matches a 75% to 80% loan-to-value cap on most investment purchases through select lenders in Lendmire’s wholesale network. Georgia has no state rule that sets the number. The same purchase tiers apply here as anywhere else, and the requirement comes from the lender’s program.
- Most purchase files land at 75% to 80% LTV, meaning 20% to 25% down.
- Select high-leverage programs reach 85% LTV (15% down), typically with a score around 700 or higher.
- A larger down payment lowers the payment and can lift coverage, but it never overrides credit floors, reserve rules, or property eligibility.
- Reserves and closing costs come on top of the down payment, so plan for more cash than the down payment alone.
- Everything here is subject to lender guidelines. Each file is underwritten individually, and nothing here is a commitment to lend.
What Is the Down Payment on a DSCR Purchase?
Think of the down payment as the flip side of the leverage cap. If a program tops out at 75% LTV, the lowest possible down payment is 25%, no matter how strong the borrower’s credit or rent coverage looks. If the cap is 80%, the floor is 20%. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
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Run the numbers in Georgia
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.
Across the wholesale network, most purchase files fall between 75% and 80% LTV. That gives the working range of 20% to 25% down. Stronger files can sometimes go lower. Weaker or more complex files need more.
Georgia investors sometimes expect an FHA-style low-down option. DSCR loans don’t work that way. They are investor loans on non-owner-occupied property, and lenders want real equity in the deal because the rental property is their main recourse if something goes wrong.
For the full picture of how these programs fit together, see Lendmire’s complete DSCR loans guide.
Is There a Georgia-Specific Down Payment Rule?
No. Georgia has no statute or regulator rule that sets a DSCR down payment. The number comes from the loan program: leverage caps, credit tier, coverage ratio, and property type.
Georgia matters through its inputs. Rents, property taxes, and insurance differ by county and property, and they all move the coverage number. A Georgia deal with heavy tax and insurance costs needs more rent, or more down, to clear the same coverage ratio as a lighter-cost deal.
So treat this as a national answer applied to a Georgia purchase. Any page claiming Georgia has its own down payment regime is describing a lender’s preference, not a state requirement.
What Moves the Number?
Five variables decide where a file lands inside the 15% to 25% range and sometimes beyond it.
| Factor | Effect on down payment |
|---|---|
| Credit score | 700+ opens the strongest leverage tiers |
| Coverage ratio | Stronger ratios open better leverage |
| Loan size | Larger balances often tighten leverage |
| Property type | Some types need more equity |
| Rental strategy | Short-term rentals carry lower caps |
Credit. A 620 floor exists in parts of the network, but most programs want around 660. The 85% LTV tier (15% down) generally asks for roughly a 700 score or better. Weaker scores typically mean lower leverage, which means more cash down.
Coverage. DSCR compares monthly rent to the full monthly obligation: principal, interest, taxes, insurance, and any HOA dues (PITIA). A ratio of 1.00 means rent equals the payment. Many select programs start there, and stronger ratios open better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted, which in practice means more equity from the borrower.
Property type. Standard single-family and small multifamily fit the main tiers. Manufactured homes (single- and double-wide), log homes, and barndominiums are not offered through the network’s DSCR programs at all. Non-warrantable condos can be financed through DSCR, but expect tighter leverage.
Short-term rentals. Purchase leverage tops out at 75% LTV, so plan on at least 25% down. Expect a score of 640 or higher, about 12 months of hosting history, and a 1.00 coverage floor on purchases. 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. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Loan size. Standard programs run up to $3,000,000. Above $2,500,000 the network generally holds to 30-year fixed structures, and larger balances tend to come with more conservative leverage.
How Does a Bigger Down Payment Change the Math?
It shrinks the loan, which shrinks the payment, which raises the coverage ratio. That makes extra equity the fastest lever on a thin-coverage Georgia deal.
Run the numbers on a purchase where rent covers the full monthly obligation at roughly 0.95x with 20% down. Moving to 25% down trims the loan by about 6%, from 80% to 75% of the property’s value. Because the principal-and-interest portion of the payment falls roughly in proportion, the ratio climbs by a similar modest share, landing at or just under 1.0x rather than making a dramatic jump. That is a modeled illustration, not a quote, and real results depend on pricing and terms. Taxes and insurance don’t shrink with the loan, so the lift runs a bit smaller than a pure principal-and-interest calculation suggests.
The practical habit: before making an offer, run coverage at 20% down and again at 25% down. If the second version clears the ratio you need and the first doesn’t, you’ve learned something worth knowing before the contract goes in. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Two cautions. First, a bigger down payment never erases leverage caps, credit floors, or reserve rules. The strongest files clear both tests: enough equity and enough rental coverage. Second, clearing 1.00 is not the same as positive cash flow. DSCR looks only at rent against PITIA. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation, so a deal at 1.05x can still lose money in a bad year.
What Cash Do You Need Beyond the Down Payment?
Plan for three buckets: down payment, closing costs, and reserves.
Reserves vary by lender, leverage, loan size, and transaction type. A common expectation is about six months of PITIA held in liquid assets after closing. 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 nine months. Lenders want to see the cash because rent can dip, and they want the borrower to have a cushion.
A typical document set includes the purchase contract, a lease or an appraiser’s market rent schedule, the appraisal, an insurance quote, entity documents if the borrower buys in an LLC (subject to lender program eligibility), and bank statements showing the funds for the down payment, closing costs, and reserves. On appraisals, the rent schedule is typically Form 1007 for single-family and Form 1025 for two-to-four unit properties. Those are just form names; they don’t set DSCR program terms.
Qualification runs primarily on property-level rental income covering the payment, subject to lender guidelines, rather than on personal income. Credit and assets still get reviewed.
Where Can the Down Payment Come From?
Savings, proceeds from selling another asset, or equity pulled from another rental are the cleanest sources. A cash-out refinance on an existing property is a common way to fund the next purchase. Cash-out leverage tops out around 75% LTV across most of the network, with about six months of seasoning as the common expectation. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Borrowing the down payment is the sticky area. Most lenders want the borrower’s own capital in the deal, and layering a second loan on top at closing is generally not accepted. Document the source of every dollar before the contract goes in, since lenders ask where funds came from.
Edge Cases Worth Knowing
Below-1.00 coverage. Available through select lenders in the network, with leverage and terms adjusted. Expect a larger down payment than a standard file at the same credit score. If you’re reaching for this path because no property you’re looking at clears 1.00 at normal leverage, that’s often a signal to revisit the submarket rather than the loan type.
No-ratio structures. Available only through select lenders, generally for borrowers who already own a primary residence. Treat them as an exception and not a plan.
First-time investors. Programs exist, but many want some housing history, such as owning a primary residence. Expect the stronger leverage tiers to be harder to reach.
Purchase versus refinance. A down payment is a purchase concept. On a refinance the equity you hold is what matters, and cash-out sits under its own ceiling of 75% LTV on standard rentals (70% when the collateral is a short-term rental). Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Term structures. The spine is the 30-year fixed. Extended terms such as 40-year and interest-only periods are available through select lenders, and ARM structures exist for investors who want them. Those choices change the payment and therefore the coverage ratio, though not the leverage cap.
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.
DSCR Versus Conventional: One Sentence
A conventional investment loan can carry a lower cost for a borrower with clean, documentable income and few financed properties, while DSCR trades a larger equity requirement for qualification on the property’s rent. Lendmire’s DSCR vs conventional comparison lays out where the break-even sits.
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 Register’s ability-to-repay rule does not cover business-purpose credit, which is part of why the down payment and leverage come from lender programs rather than a federal formula.
How to Think About Your Own Number
The right down payment depends on the investor. A self-employed borrower with an LLC and several rentals may find that putting 25% down is simply the cost of keeping income documentation light. A borrower with strong credit and a high-coverage property may reach a 15% down tier and keep cash for reserves or the next deal. And a borrower stretching to hit even 20% should ask whether the reserves left over are enough. Tight reserves are a bigger risk than a slightly higher equity share. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
The tradeoff is real. More down means a stronger ratio and a safer file, but it also ties up cash that might earn more elsewhere. Less down means more deals from the same capital, with thinner coverage and less cushion. Neither is wrong; it depends on how much vacancy and repair risk you can absorb.
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.
Key Terms Defined
LTV (loan-to-value): The loan amount divided by the property’s value; the down payment is the remaining share.
DSCR (debt service coverage ratio): Monthly rent divided by the full monthly obligation of principal, interest, taxes, insurance, and HOA dues.
PITIA: Principal, interest, taxes, insurance, and association dues, the monthly payment DSCR measures against.
Reserves: Liquid cash held after closing, commonly sized in months of PITIA.
Seasoning: How long you’ve owned a property before a cash-out refinance is typically allowed.
Frequently Asked Questions
Can I buy a Georgia rental with less than 20% down?
Sometimes. Select high-leverage programs reach 85% LTV, which means 15% down, typically with a score around 700 or higher and strong coverage. Most files sit at 20% to 25% down, and short-term rentals need at least 25% on a purchase. Treat 15% as a stronger-file exception, subject to lender guidelines.
Does a higher credit score reduce the down payment?
It can, mostly by unlocking higher leverage tiers. A 620 floor exists in parts of the network, most programs want around 660, and 700 or above opens the strongest tiers. Credit also affects pricing, so a higher score helps on two fronts.
Will a bigger down payment help a property that falls short of 1.00?
Often yes. A smaller loan means a smaller payment, which lifts the ratio. But it won’t override a lender’s leverage cap, reserve rules, or property eligibility, so a bigger down payment improves the file without guaranteeing approval.
Do reserves count toward the down payment?
No. Reserves are separate cash held after closing, commonly about six months of PITIA, and loans above $1,500,000 typically step up to about nine months. Conservative rate-and-term files at modest leverage can see reserves waived.
Does Georgia require anything different from other states?
No state-specific leverage overlay applies, so Georgia purchases use the standard tiers. What differs is the local cost of taxes and insurance, which feed into the coverage ratio.
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. You can reach the team at 828-256-2183 or request a quote, with DSCR programs available in 41 markets, including Washington, D.C.
About Lendmire
Lendmire — NMLS# 2371349 — is a DSCR and non-QM mortgage brokerage with investor loan programs in 41 markets, including Washington, D.C. DSCR eligibility is commonly reviewed by the lender around property-level rent rather than personal income documentation, subject to lender guidelines, and the brokerage helps arrange financing for LLC-owned portfolios beyond conventional financed-property limits. Recognized by Scotsman Guide as a Top Mortgage Workplace in 2025 and 2026.
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References
1. Federal Register – CFPB Ability-to-Repay/QM rule
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How a 40-Year DSCR Loan Works as a 1099 Contractor · Individual DSCR Loans vs. a Blanket DSCR Loan for Three Airbnbs · How a First-Time Landlord Qualifies for a Smaller DSCR Down Payment
Guides: DSCR Loans in Georgia
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.