The Quick Read: Usually 20% to 25% down on a purchase of an investment property, because most programs in Lendmire’s wholesale network cap leverage at 75%–80% LTV (loan-to-value), subject to lender guidelines, with no extra New Hampshire rule layered on top of the standard purchase tiers. Your credit, coverage ratio, and property type decide where in that range you land.
- Select high-leverage programs reach 85% LTV on a purchase of an investment property, which means 15% down, with roughly a 700+ credit score.
- A cash-out refinance on a standard rental tops out around 75% LTV across most of the network.
- Reserves (extra cash held back after closing) sit on top of the down payment.
- True zero-down DSCR purchase financing is not a realistic product.
- Every file is underwritten individually, and programs change. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
How Does the Lender Set Your Down Payment?
Your down payment is the price minus the loan, and the loan is capped by a maximum LTV. Nobody in Concord or Washington sets that cap. Each lender and its investor decide it, so the minimum down payment is simply 100% minus the maximum LTV.
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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.
That is why a DSCR loan has no single “required” down payment. A DSCR loan is a business-purpose investment loan. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. DSCR means debt service coverage ratio: monthly rent divided by the full monthly obligation of principal, interest, taxes, insurance, and association dues (together, PITIA).
Across the wholesale network Lendmire works with, most purchase files land at 75%–80% LTV. That is 20% to 25% down. Market surveys report a somewhat wider spread: BiggerPockets puts typical DSCR purchase down payments at roughly 20% to 30%, often higher than on owner-occupied mortgages. The network figure for this article is 20% to 25% on most files.
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. That difference is why the equity requirement looks the way it does. The lender is not reading your pay stubs. It leans on the property and on your stake in it.
Lender-side mechanics are simple. On a purchase, the lender usually measures LTV against the lower of the price or the appraised value. If you agree to pay more than the property appraises for, the gap comes out of your pocket on top of the down payment.
What Moves the Number Up or Down?
Credit, coverage, property type, loan size, and loan purpose all move the maximum LTV. Strong files sit at the generous end of the range. Thin or complicated files sit at the other end. Most programs we place files with weigh these together rather than one at a time.
| Factor | Effect on down payment | Why |
|---|---|---|
| Credit score | Higher score, less down | 700+ unlocks the strongest leverage tiers |
| Coverage ratio | Stronger ratio, less down | Rent clearly covers the payment |
| Property type | 2–4 units and condos often need more | Lower LTV caps on some programs |
| Loan size | Larger loans can tighten caps | Bigger exposure for the lender |
| Rental strategy | Short-term rentals sit lower | Income is more variable |
| Loan purpose | Cash-out needs more equity left | Cash-out caps sit below purchase caps |
On credit, a 620 floor exists in parts of the network, and most programs want around 660. Reaching 700+ opens the strongest tiers, including the 85% LTV purchase programs. A few lenders in the network will not offer that top tier at all, so the same borrower can get different answers from different programs.
On coverage, 1.00 is where many select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. In practice that adjustment usually means more equity. Lenders want to see a stronger stake when the rent does not fully cover the payment.
Loan size matters too. Standard programs run up to $3,000,000, and above $2,500,000 the network generally holds to 30-year fixed structures. Smaller balances route through select lenders in the network.
One more point on property type. Manufactured homes (single- and double-wide), log homes, and barndominiums are not offered in these DSCR programs at any down payment.
What Does a Bigger Down Payment Do to Your Coverage?
A bigger down payment shrinks the loan, which lowers the principal and interest part of the payment and nudges the coverage ratio up. The nudge is smaller than most new investors expect. Taxes and insurance do not shrink when the loan does.
Run the numbers this way. These are modeled assumptions, not market data. Picture a New Hampshire rental where property taxes and insurance make up a heavy share of the full monthly obligation. Say the file sits right at 1.00x with 20% down. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
| Down payment | LTV (purchase) | Modeled coverage |
|---|---|---|
| 20% | 80% | about 1.00x |
| 25% | 75% | about 1.05x |
| 30% | 70% | about 1.10x |
Each extra 5 points of equity buys a few hundredths of coverage, not a transformation. In a state where property taxes weigh heavily on rentals, the tax portion of the obligation stays put. So the lever has limits. It can lift a borderline file into a better tier. It will not rescue a property whose rent is far below its obligations.
It also never erases the other rules. A larger down payment does not remove leverage caps, credit floors, reserve requirements, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Here is a point worth stating plainly. Clearing 1.00x is not the same as positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, and capital expenses sit outside the calculation. A property can clear the ratio and still leave you writing checks in a bad month.
How Much Cash Do You Need Beyond the Down Payment?
Plan for the down payment, closing costs, prepaid items, and reserves. The down payment is the biggest line, but it is not the whole bill. Many first-time investors budget for the 20% and get surprised by the rest.
Cash to close is down payment plus closing costs plus prepaids. Reserves are separate money the lender wants you to still hold afterward, counted in months of PITIA. Reserves vary by lender, leverage, loan size, and transaction type. They commonly run around 6 months of PITIA. Conservative rate-and-term refinances at modest leverage under $1,500,000 can see reserves waived. Loans above $1,500,000 typically step up to about 9 months.
Gift funds usually do not count toward reserves, so plan on your own seasoned cash.
New Hampshire adds one closing-cost item that investors often forget. The state’s real estate transfer tax is set by RSA 78-B at $0.75 per $100 of price, with a $20 minimum on small transfers. Transfers are presumed taxable unless a specific exemption applies. The statute does not say who pays. According to McLane Middleton, the tax is traditionally split evenly between buyer and seller, and that split can be negotiated. So the buyer’s share is often half of 0.75% of the price. Check your settlement statement for the actual split.
LLC buyers should know the same law reaches transfers of controlling interests in entities that hold New Hampshire real estate. Moving a property into or out of an LLC can trigger the tax unless an exemption applies, so check before you close. Lending to an LLC is subject to lender program eligibility, so confirm that first.
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.
Purchase, Cash-Out, or Short-Term Rental: Do the Numbers Change?
Yes, because each transaction type has its own ceiling. A purchase is the most generous. Refinances and short-term rentals sit lower. Mixing those ceilings up is one of the more common planning mistakes.
On a purchase of a standard rental, most files run 75%–80% LTV. On a cash-out refinance of a standard rental, the ceiling sits around 75% LTV, and about 6 months of seasoning (time you have owned the property) is the common expectation. That means you must leave at least 25% equity in the property.
Short-term rental collateral works differently:
- Purchase leverage tops out at 75% LTV, with a 1.00 coverage floor.
- Refinance runs around 70% LTV, with a 1.00 coverage floor.
- Cash-out on short-term rental collateral is capped at 70% LTV.
- Expect a 640+ credit score and about 12 months of hosting history. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Lenders may base short-term rental income on projections rather than long-term market rent. Appraisals typically document long-term rent on a rent schedule (Form 1007 for a single-family home, Form 1025 for a small residential income property). 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.
Some investors use cash-out proceeds from an existing rental to fund the next down payment. Proceeds are usually unrestricted, but the refinanced property must keep its required equity. Lendmire’s piece How Much Second Home Down Payment a Cash-Out Refinance Funds covers a related equity-recycling angle.
Can You Put Zero Down on a DSCR Loan?
No. Not on a purchase, and not in any form that holds up in compliant non-QM lending. FHA and VA low-down-payment programs are owner-occupant programs, so a pure rental purchase cannot use them.
The closest thing is a high-leverage program at 85% LTV on a purchase of an investment property, which still means 15% down. It asks for stronger credit (roughly 700+), stronger coverage, and more reserves, and not every lender offers it. For a fuller look at what people mean by “no money down,” read Lendmire’s explainer on DSCR loans with no down payment options. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Two real ways exist to reduce the cash you bring from savings. One is recycling equity from another property through a cash-out refinance, as above. The other is negotiating the transfer-tax split or seller credits, which trims closing costs, not the down payment itself.
Coverage below 1.00 and no-ratio structures are also real paths, but they do not reduce equity. Sub-1.00 coverage is available through select lenders in the network, with leverage and terms adjusted. That generally means more cash down. No-ratio is available only through select lenders, generally for borrowers who already own a primary residence.
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.
How Does This Compare With Conventional Investor Loans?
DSCR down payments are often similar to or a bit higher than conventional investment-property loans, and the paperwork is different. The agency rulebook for conventional loans, the Fannie Mae Eligibility Matrix, publishes its own LTV limits by occupancy and unit count. DSCR loans are not delivered under that matrix, so do not use its figures for a DSCR file.
The tradeoff is straightforward. A DSCR loan skips personal income and debt-to-income documentation because qualification runs on the property’s income. In exchange, the lender wants meaningful equity. Many investors find that a fair trade, especially when they own several properties or have complicated traditional personal-income documentation. Lendmire’s complete DSCR loans guide walks through that comparison in more depth.
How Should You Pick a Down Payment Level?
Start with the cash you can commit without draining reserves, then test coverage at each leverage level. The right answer is usually the lowest down payment that still leaves a healthy cushion after closing.
A practical way to work it:
1. List your cash: down payment, closing costs including the transfer-tax share, and reserves. 2. Check your score against the tiers. Around 660 is a common comfort point, and 700+ opens the best leverage. 3. Run the coverage ratio at 75% and 80% LTV on a purchase. If it sits near 1.00, consider more down. 4. Compare against your return goals. More equity lowers cash-on-cash return and means fewer properties from the same pool of capital. 5. Decide whether a modest ratio gain is worth the cash. Often it is, when the extra equity moves you into a better tier.
Honestly, this is a genuine toss-up for borderline files. A heavier down payment improves safety and pricing options, but a lighter one lets you buy the next property sooner. Investors who plan to hold several rentals often prefer the lighter option once coverage is comfortably above the program floor.
Common mistakes are easy to spot. Investors budget only for the down payment. They forget that cash-out ceilings are lower than purchase ceilings. They assume the 15% down tier is standard when it is reserved for strong files. And they underestimate New Hampshire property taxes, which sit inside PITIA and press directly on coverage. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Key Terms Defined
DSCR (debt service coverage ratio): Monthly rent divided by the full monthly obligation of principal, interest, taxes, insurance, and association dues.
LTV (loan-to-value): The loan amount as a percentage of the purchase price or appraised value. A 75% LTV means 25% down. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
PITIA: Principal, interest, taxes, insurance, and association dues, the full monthly obligation the lender compares against rent.
Reserves: Cash you hold after closing, counted in months of PITIA, separate from the down payment and closing costs.
Seasoning: The waiting period a lender wants after you buy a property before it will refinance it.
Cash-out refinance: A new loan on a property you already own that pays off the old loan and releases some equity as cash.
Non-QM: A loan that falls outside standard qualified-mortgage rules, such as a business-purpose investor loan.
Frequently Asked Questions
Is 15% down possible on a DSCR loan in New Hampshire?
Yes, but only on strong files. Select high-leverage programs reach 85% LTV on a purchase of an investment property, which means 15% down, with roughly a 700+ credit score and stronger coverage and reserves. Not every lender in the network offers it, and it is subject to lender guidelines and property review.
Does New Hampshire have its own DSCR down payment rule?
No. There is no state-specific LTV overlay, so New Hampshire purchases use the same standard tiers as everywhere else. The state-specific items are the transfer tax and the heavy property-tax load. Those affect cash to close and coverage, not the LTV cap.
How much equity do I need to leave in a rental I refinance?
At least 25% on a standard rental, because cash-out tops out around 75% LTV across most of the network. For short-term rental collateral the cash-out ceiling is 70% LTV, so you leave at least 30%. About 6 months of seasoning is the common expectation. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Do reserves count toward my down payment?
No. Reserves are separate cash held after closing, commonly around 6 months of PITIA, and about 9 months on loans above $1,500,000. Conservative rate-and-term files at modest leverage under $1,500,000 can see them waived. Gift funds usually cannot cover reserves.
Will a higher credit score lower my down payment?
Often, yes, but mostly through the leverage tier. A 700+ score unlocks the strongest tiers, while most programs want around 660 and a 620 floor exists in parts of the network. Some lenders treat strong credit as better terms rather than a lower minimum, so it varies by program.
Next Step
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. As a DSCR-focused mortgage broker, Lendmire arranges financing through select lenders in its wholesale network across 41 markets, including Washington, D.C. Programs change, and every file is underwritten individually. Nothing here is a commitment to lend.
New Hampshire buyers who budget for the transfer-tax share and a tax-heavy payment up front tend to find the rest of the file much easier.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C., through wholesale and investor-lending channels. DSCR loans are evaluated by the lender on rental income rather than personal income, subject to lender guidelines — a fit for LLC-owned portfolios, self-employed investors, and operators scaling beyond conventional loan caps. Recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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References
1. BiggerPockets: Explaining DSCR Loans and Why Many New Investors Overlook Them
2. New Hampshire General Court: RSA 78-B
3. McLane Middleton: Real Estate Tax Considerations in New Hampshire
4. Fannie Mae Eligibility Matrix
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much Down Payment Does a DSCR Loan in Maryland Require? · How Much Down Payment Does a DSCR Loan in Georgia Require? · How Much Down Payment Does a DSCR Loan in Kentucky Require?
Guides: DSCR Loans in New Hampshire
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.