DSCR loans are non-QM products, so there is no agency floor for credit score. Each lender sets their own minimum and tiers the pricing based on FICO. Most DSCR lenders start at 620 or 640 FICO. Some non-prime DSCR lenders will go to 580. Above 700, FICO adds little marginal benefit in most programs since the pricing tiers flatten out.
Typical FICO Tiers and Their Impact
- ✦720+: best rate tier, access to 80% LTV on most programs
- ✦680-719: slight rate add-on, typically still access to 80% LTV
- ✦640-679: rate add-on of 0.5% to 1.5%, LTV may cap at 70-75%
- ✦620-639: rate add-on of 1% to 2%, LTV typically 65-70%, fewer lenders available
- ✦Below 620: very limited lenders, rates 2%+ above best tier, often capped at 65% LTV or less
Which Score Lenders Use
Most DSCR lenders use the middle of three bureau scores (Experian, Equifax, TransUnion). If there are two borrowers, they use the lower middle score of the two. This is the same methodology as agency loans. Some non-QM lenders use the highest score; confirm each lender's policy before submitting.
Improving FICO Before DSCR Submission
Because FICO has an outsized impact on DSCR pricing, a borrower on the cusp of a tier should consider delaying application to improve their score. Rapid rescore can address utilization issues in days. Paying down revolving balances below 30% utilization can move scores 20 to 50 points in a billing cycle. The rate improvement from crossing a tier often saves more over 5 years than any origination concession can offset.
Aria can pull current DSCR rate and LTV tiers from multiple non-QM lenders for any FICO band and model the savings from improving score before application. Ask at vicariointel.com.
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