The Quick Read: Most DSCR purchase loans on an Ohio rental call for about 20%–25% down, which is 75%–80% LTV, subject to lender guidelines and the individual file.
- Select high-leverage programs reach 85% LTV (15% down), generally with a score near 700 or better.
- Cash-out refinances top out around 75% LTV across most of the network, so equity replaces the down payment.
- Credit, coverage ratio, loan size and property type each move the cap.
- Reserves and closing costs come on top of the down payment.
- Ohio sets no separate rule here. The answer is the same in any state the property sits in.
Ohio investors ask this question often because entry prices in much of the state are modest and the cash-flow math looks easy. The down payment answer, though, does not come from the state. It comes from the lender’s leverage grid. Lendmire is a mortgage broker that arranges DSCR investor loans through select lenders in its wholesale network, across 41 markets including Washington, D.C. What follows is how those grids behave on real files, what pushes the number up, and what cash you need beyond it.
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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.
Why Ohio Doesn’t Change the Number
DSCR loans are non-QM investor products. No government agency sets their down payment. Each program publishes its own maximum LTV, and the minimum down payment is simply the mirror image: 80% LTV means 20% down, 75% LTV means 25% down. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Some outside material says the same thing. Scotsman Guide describes DSCR as a non-QM investment-property loan that looks mainly at the property’s ability to cover the payment, and notes that requirements vary by lender. That matches what a broker sees across many programs.
So a duplex in Dayton and a fourplex in Columbus face the same leverage tiers. What differs is price, rent and the taxes baked into the payment. Those feed the coverage ratio, which feeds the leverage you can actually use. For the full picture of how these loans work, see Lendmire’s complete DSCR loans guide.
What Does the Network Actually Allow?
Across the network, purchase files typically land at 75%–80% LTV, meaning 20%–25% down. A few select programs go to 85% LTV, or 15% down. Those usually want a score around 700 or higher and a clean file.
Other figures to anchor on, all typical ranges and not promises:
| Factor | Typical network range |
|---|---|
| Purchase LTV | 75%–80% |
| High-leverage purchase | Up to 85% (about 700+ score) |
| Cash-out refinance | Around 75% LTV |
| Credit score | 620 floor; most want about 660 |
| Loan size | Up to $3,000,000 on standard programs |
Market surveys report that some lenders go to 85% LTV under $1 million and only 65% LTV above $1 million, per Scotsman Guide. Inside Lendmire’s network, standard programs run up to $3,000,000, though loans above $2,500,000 generally stay with 30-year fixed structures. Programs differ, so treat any single grid as one lender’s version.
What Moves the Number Up or Down
The headline cap is a ceiling. Five things step it down.
Credit score. A 620 floor exists in parts of the network. Most programs want about 660. The strongest leverage tiers open at 700 and up. Lower scores mean lower LTV, so more cash down.
Coverage ratio. DSCR is monthly rent divided by the full housing payment: principal, interest, taxes, insurance and any association dues. Many select programs start at 1.00. Stronger ratios open better leverage and pricing. Coverage below 1.00 is a separate path, available through select lenders in the network, with leverage and terms adjusted. In practice that means more equity.
Loan size. Larger balances usually carry tighter caps and heavier reserves.
Property type. Single-family, small multifamily and condos are routine. Manufactured homes (single- and double-wide), log homes and barndominiums are not offered in the network’s DSCR programs at all.
Transaction type. Purchases and refinances use different grids, covered below.
The Feedback Loop: More Down, Better Coverage
A bigger down payment shrinks the loan. A smaller loan means a smaller payment. The same rent then covers that payment better, and the ratio rises.
This is why the coverage number, not the leverage cap, often decides how much cash a buyer brings. Picture an Ohio investor eyeing a small multifamily where the rent covers the payment at 80% LTV with a ratio just under 1.00. Moving to 75% LTV may lift coverage enough to meet a 1.00 program floor. The cap allowed 20% down. The ratio demanded 25%.
Investors Paradise makes the same point, noting that stronger ratios can improve pricing and leverage while lower ratios may require more equity.
One caution. Clearing 1.00 is not the same as positive cash flow. DSCR compares rent to the payment only. Repairs, vacancy, management, utilities and capex sit outside it. Plan for them separately.
A larger down payment also never erases other limits. Credit floors, reserve rules and property eligibility still apply. The strongest files clear both tests: enough equity and enough rental coverage.
Short-Term Rentals and Special Cases
Short-term rentals run tighter. In the network, STR purchases go to 75% LTV, refinances to about 70%, and cash-out to 70% on short-term-rental collateral. Expect a score of 640 or better, about 12 months of hosting history, and a 1.00 coverage floor on both purchases and refinances, each underwritten on its own terms. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
Standard long-term rentals on cash-out reach 75%. 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 structures do not work. DSCR lenders generally will not accept a down payment that is itself borrowed against the property, or a non-arm’s-length sale. A DSCR loan also cannot be used for a home you plan to live in. It is investor-only.
Some borrowers do use a hard money or bridge loan first and refinance into DSCR later. That is a different transaction with its own seasoning and leverage rules.
Is Zero Down Possible?
No. A true zero-down DSCR purchase is not a standard product. A 10% program is not part of the network either. Investors who want lower out-of-pocket cash have legitimate routes: pull equity from another property with a cash-out refinance, then use it as the next down payment. Scotsman Guide makes the same observation about cash-out on one successful property funding a new purchase.
Capital, not qualification, is usually the real limit on scaling. Twenty to twenty-five percent on every door adds up fast.
Down Payment Is Not Your Cash to Close
Files fall apart here more than anywhere. A buyer budgets the down payment and forgets the rest.
1. Down payment. The mirror of the LTV you are approved at.
2. Closing costs and points. These vary by loan size and program.
3. Reserves. Commonly about 6 months of PITIA, stepping up to about 9 months on loans above $1,500,000. Conservative rate-and-term files at modest leverage under $1,500,000 can see reserves waived. Reserves vary by lender, leverage, loan size and transaction type.
4. Appraisal. The appraiser typically completes a rent schedule (Form 1007 for single-family) or an operating income statement (Form 1025 for 2-4 units).
5. Source of funds. Down payment and reserves are generally verified through bank statements. Documentation should show where the money sat and how long.
A clean paper trail on funds, plus a lease or market rent support, gives the lender fewer gaps to chase. It does not guarantee approval.
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.
Refinance Versus Purchase
A refinance has no down payment. Equity plays that role. Cash-out tops out around 75% LTV on standard rentals across most of the network, and about 6 months of seasoning is the common expectation. Rate-and-term refinances can go higher, up to 85% LTV on select programs. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
If you already own the property outright or with a lot of equity, the question changes from “how much down” to “how much equity stays in.” Lendmire’s piece How Much Second Home Down Payment a Cash-Out Refinance Funds covers using equity as the down payment on a next purchase.
Choosing How Much to Put Down
Run both tests before you pick a number. First, find the leverage tier your credit and loan size support. Second, check whether the rent covers the payment at that leverage. If it does not, either add equity or find a stronger rent case.
Putting more down lowers the payment, lifts coverage and can improve pricing. Putting less down preserves cash for reserves, repairs and the next deal. Neither is always right. An investor with a thin reserve account often does better at 25% down than at 20%, because the extra cushion covers vacancy.
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 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 Regulation Z rule on business-purpose credit is the reason.
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. Call 828-256-2183 or request a quote.
Key Terms Defined
DSCR: The debt service coverage ratio, which is monthly rent divided by the full housing payment.
LTV: Loan-to-value, the loan amount as a share of the property’s value or price.
PITIA: Principal, interest, taxes, insurance and association dues, the full monthly housing payment.
Seasoning: The minimum time you must own a property before a cash-out refinance is available.
Reserves: Liquid cash held after closing, measured in months of PITIA.
Frequently Asked Questions
Can I put less than 20% down on a DSCR loan in Ohio?
The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
Sometimes. Select high-leverage programs reach 85% LTV on a purchase, which is 15% down, generally for borrowers with a score near 700 or better and a strong file. Most purchases land at 75%–80% LTV. Eligibility depends on lender guidelines, credit, coverage and property type.
Does Ohio have its own DSCR down payment rule?
No. Down payment comes from the program’s leverage grid, not from state law. The network applies the same standard purchase tiers regardless of the state where the property sits.
Does a bigger down payment help me qualify?
It helps coverage, since a smaller loan means a smaller payment against the same rent. It does not override credit floors, reserve rules or property eligibility. The strongest files have enough equity and enough rental coverage.
What is the down payment on a short-term rental?
Purchase leverage tops out at 75% LTV, so expect at least 25% down. Expect a 640 or better score and about 12 months of hosting history. Refinances run about 70% LTV, and cash-out about 70% on short-term-rental collateral. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
How much cash do I need beyond the down payment?
Plan for closing costs and reserves, commonly about 6 months of PITIA and about 9 months on loans above $1,500,000. Conservative rate-and-term files under $1,500,000 can see reserves waived. Funds are generally verified through bank statements.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C. DSCR eligibility is generally reviewed around property-level rental income rather than personal income, subject to lender and program guidelines, a fit for self-employed investors and LLC-owned portfolios. Lendmire was recognized as a Scotsman Guide Top Mortgage Workplace in 2025 and 2026.
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References
1. Scotsman Guide: Reach Real Estate Investors by Becoming an Expert in These Loans
2. Investors Paradise: Non-QM Mortgages for Investors
This article is part of Lendmire’s DSCR loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Many Months of Reserves Does a High Net Worth DSCR Loan Require? · How a Large-Balance DSCR Loan Works · How Much Down Payment Does an Interest-Only Super Jumbo DSCR Loan Need?
Guides: DSCR Loans in Ohio
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.