Key takeawayA thin slice of DSCR lenders go to 600, expect 25–30% down minimums and 9–12 months reserves.
What concretely changes at 600
- A thin slice of DSCR lenders go to 600, expect 25–30% down minimums and 9–12 months reserves.
- DSCR ratio requirements tighten: where 640 gets 1.0x, 600 may need 1.15–1.25x for comparable pricing.
- Pricing runs 1–2% above 680-tier DSCR, the deal’s cash flow must absorb it.
- Prepayment penalties are common; read them against your hold timeline.
Requirements at this band
| Lender availability | Thin; 620–640 is mainstream |
|---|---|
| Down payment | 25–30% typical at 600 |
| DSCR ratio | Often 1.15x+ required |
| Reserves | 9–12 months |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
Smart moves at 600
- Model the deal at 600-tier pricing, not advertised "starting at" rates.
- Higher down payment can buy meaningful rate improvement at this band.
- Compare hard money + later DSCR refi as a two-step alternative.
FAQ
What DSCR ratio do I need at 600?
Often 1.15–1.25x for standard pricing vs. 1.0x at higher scores. Below 1.0 at 600 is generally a no.
Can reserves substitute for score?
Partially, heavy reserves (12+ months) are the most effective compensating factor at 600.
Is the prepayment penalty negotiable?
Sometimes (buydown structures exist), but assume 3–5 years of declining penalty in your planning.