Short answer: yes. 620 is the minimum credit score on most DSCR programs, and plenty of investors close at exactly that number.
The longer answer is that 620 gets you in the door, not to the best seat in the room. Understanding what changes at the low end of the credit range — and what a fifty-point improvement is worth — can save you tens of thousands of dollars.
What 620 Actually Buys You
At 620, you’ll typically still qualify for:
- A 30-year fixed, 40-year, or interest-only structure
- Loan amounts within the standard range
- Single-family, condo, townhome, and 2–4 unit properties
- Closing in an LLC
- Purchase or refinance
What tightens:
- Maximum LTV. Where a 740 borrower might reach 80%, a 620 borrower is often capped at 75%.
- Pricing. Lower scores carry rate adjustments.
- Reserves. You may be asked for three months instead of one.
- Minimum DSCR. Some lenders require a stronger ratio at lower scores.
What the LTV Difference Costs
This is where the abstract becomes concrete. Take a $500,000 property.
At 80% LTV, you borrow $400,000 and bring $100,000 to closing.
At 75% LTV, you borrow $375,000 and bring $125,000.
That’s $25,000 more cash out of your pocket, on the same property, purely because of a credit score band.
There’s a second effect that cuts the other way. At 7.5% on a 30-year term, the $400,000 loan carries $2,796.86 in principal and interest. The $375,000 loan carries $2,622.05.
Add $420 monthly for taxes, insurance, and HOA, and assume $3,200 in rent:
- At 80% LTV: $3,200 ÷ $3,216.86 = DSCR 0.99
- At 75% LTV: $3,200 ÷ $3,042.05 = DSCR 1.05
The lower leverage forced on you by the credit tier actually pushes the property above the 1.00 threshold. More cash in, but the deal now qualifies. This is exactly why lenders impose the tier — it’s not arbitrary.
Reserves Get Heavier Too
Where a stronger file might clear with one month of reserves, a 620 borrower often needs three.
On that same property with a $3,216.86 monthly payment, three months means about $9,651 liquid, held after your down payment clears. Not the same money. Investors miss this constantly.
Stocks and retirement accounts can count toward reserves, but usually at a discount — often 70% of value for brokerage accounts and 60–70% for retirement funds, since withdrawing carries penalties.
What a Fifty-Point Improvement Is Worth
Moving from 620 to 670 typically crosses a pricing band. Moving to 700 crosses another. The exact adjustments vary by lender, but the direction never does: every band you climb improves either your leverage or your rate, and often both.
On a $400,000 loan held for a decade, even a modest rate improvement compounds into a five-figure difference. If you’re six months from buying, credit repair may be the highest-return work you can do.
How to Move Your Score Before Applying
These are ordered by speed, not by how often they’re recommended.
Pay down revolving balances (30–45 days)
Credit utilization is roughly 30% of your score and updates every statement cycle. Getting each card below 30% of its limit — ideally below 10% — is the fastest legitimate lever available. Pay balances down before the statement closes, not after.
Don’t close old cards
Length of credit history matters, and closing an old account shrinks your available credit, which raises utilization. Counterintuitive, but closing that unused card you’ve had for twelve years can lower your score.
Dispute genuine errors (30–60 days)
Pull all three reports at AnnualCreditReport.com — it’s free and it’s the official source. Roughly one in five reports contains an error. Accounts that aren’t yours, incorrect late payments, and duplicate collections all happen more often than they should.
Stop applying for new credit
Each hard inquiry costs a few points, and new accounts lower your average account age. Freeze the applications in the six months before you need financing.
Let time work
Late payments lose weight as they age. A thirty-day late from three years ago hurts far less than one from last quarter.
If 620 Is Still Out of Reach
Below 620, DSCR generally isn’t available. But the deal may still be financeable.
Hard money loans can go as low as 580, priced accordingly and structured as short-term interest-only debt. The trade is a much higher rate and a shorter runway.
A common path: acquire with hard money, hold twelve to eighteen months while you rebuild credit and stabilize the property, then refinance into a DSCR loan. Because most DSCR programs carry no seasoning requirement, you can make that move as soon as your file supports it rather than waiting out an arbitrary clock.
Bringing on a partner with stronger credit is another route, though it changes the ownership conversation and deserves a proper operating agreement rather than a handshake.
A Note on Credit Repair Companies
Nearly everything a credit repair company does, you can do yourself for free. Disputing errors, negotiating with collectors, and paying down balances require persistence, not a subscription.
Be especially wary of anyone promising to remove accurate negative information. That isn’t a service — accurate items stay for their statutory period, and no one can lawfully delete them. Firms that guarantee otherwise are either lying or planning to file frivolous disputes on your behalf, which can backfire.
Where to Start
Pull your reports, check the middle score across all three bureaus — that’s the one lenders use, not the highest — and see how close you are to the next band.
Then run the property. Our DSCR calculator will tell you whether it clears 1.00, and the full requirements guide covers reserves, documentation, and property eligibility.
Apply now to see where you stand. Pre-qualification takes a few minutes and doesn’t involve a hard credit pull, so checking costs you nothing.
Credit tiers, LTV maximums, reserve requirements, and pricing adjustments vary by lender and change over time. Figures above are illustrative examples, not quoted terms. All loans are subject to underwriting approval, and nothing here constitutes a commitment to lend or financial, tax, credit, or legal advice.
