DSCR down payment funding is the personal equity check on a rental that already cash-flows — not a substitute for rent. Jaken Finance Group originates the DSCR loan on the property (5.75%–10.5%, up to 85% LTV purchase in select markets for qualified borrowers). When the gap between that loan and the purchase price is $50,000–$500,000, an unsecured business-purpose term loan can fill it in 3–10 business days on a complete file. Terms are 3, 5, or 7 years. Pricing is quoted per file in an approximate 6%–18% band by Preferred Funding Group.
The educational test is simple: does rent still cover the mortgage, and do you still cover the unsecured note? If either answer is no, do not borrow the down payment.
Pre-qualify for DSCR down payment funding →
Parent product: unsecured term loans. Broader equity-gap guide: real estate down payment funding. Long-term spoke: down payment funding for long-term loans.
Why DSCR buyers look for down payment capital
DSCR underwriting is property-first. That is the point of the product. It is also why sponsors run out of cash while they still have deal flow. Four doors at 20% down on $450,000 averages is $360,000 of equity before closing costs. Cash-out refinance recycles capital after stabilization. It does not fund the first two closings.
Typical reasons this page exists:
- You are mid-BRRRR. Property one is listed for refinance; property two is under contract.
- The DSCR file will clear at 80% LTV; you have 12% liquid after earnest money.
- A 1031 is in flight and the replacement needs more cash than the exchange will wire on day one.
- You would rather not sell a performing rental to buy the next one.
None of those problems is a reason to lever a broken rental. If Form 1007 rent does not support PITIA, borrowing the down payment just adds a personal payment on top of a thin DSCR.
What the DSCR lender sees vs what you feel
| Layer | Who underwrites it | What it covers | Rate band |
|---|---|---|---|
| DSCR mortgage | Jaken Finance Group (property) | Purchase (or refi) of the rental | 5.75%–10.5% |
| Down payment note | Preferred Funding Group (referral) | Personal equity at closing | Approx. 6%–18%, quoted per file |
| Reserves | You | Taxes, insurance, vacancy, maintenance | Cash — not this loan |
CFPB Ability-to-Repay describes owner-occupied mortgage credit. A DSCR rental is non-owner-occupied business-purpose property debt. The unsecured note is also business-purpose. A house you will live in is the wrong file for both.
DSCR is NOI ÷ property P&I. Taxes and insurance sit in the NOI build in the calculator below, matching the DSCR calculator. The unsecured installment is not added to the denominator. That is honest and also dangerous if you stop reading at the 1.25x banner.
Model it before you apply
Load a $420,000 purchase at 80% LTV. The DSCR loan is $336,000. The equity gap is $84,000. At $3,400 gross rent, 5% vacancy, 10% operating expense, and modeled 7.75% / 30 years, the rental either clears 1.0x or it does not — independent of the unsecured note. Then the tool subtracts an 11% 5-year unsecured payment on the $84,000 (about $1,827 a month) from leftover NOI. If that leftover goes negative, the deal does not cash-flow you, even if it cash-flows the lender.
DSCR down payment cash-flow calculator
Property DSCR ignores the unsecured note. This tool shows both: the ratio the DSCR lender sees, and the cash left after you also pay the down-payment installment. Estimates only — not a loan offer. Unsecured pricing is quoted per file by Preferred Funding Group. DSCR property rates stay in the 5.75%–10.5% band.
Equity gap / down payment
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Property DSCR
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Unsecured payment is not in this ratio
Unsecured monthly P&I
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Cash after both payments
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NOI − DSCR P&I − unsecured P&I
Tool-only payment math without the rental: unsecured term loan calculator.
Worked example: Indianapolis duplex
Purchase $420,000. Market rent $3,400. DSCR at 80% / 7.75% / 30 years. Unsecured $84,000 at an illustrative 11% over 5 years.
- Property P&I is the number the DSCR desk cares about.
- Unsecured P&I is the number your other W-2, other rentals, or K-1 have to cover if the duplex’s leftover is thin.
- If you already own two doors that net $900 a month combined after their own mortgages, $1,827 may still fit. If this is door one and the leftover is $200, it does not.
Do not use Zillow rent. Lenders qualify on market rent from the appraisal or the executed lease.
Worked example: Tampa SFR that should not borrow the down payment
Purchase $389,000 at 85% LTV because the file is otherwise clean. Rent $2,450. After vacancy, tax, insurance, and a 10% op-ex haircut, NOI barely covers P&I. DSCR prints 1.02x. Adding $58,000 unsecured at 12% over 5 years is about $1,291 a month. The ratio on the term sheet still says 1.02. Your account says minus four figures. Do not take the unsecured note. Either bring cash, buy a cheaper house, or wait for rent that supports a lower LTV.
That is the whole educational job of this page.
DSCR down payment vs other equity tools
| Need | Better first call |
|---|---|
| Property already cash-flows; you lack the 15–25% check | This page |
| You have equity in another rental and a 640+ FICO | Second-position DSCR cash-out — keep the first mortgage |
| Short-term flip, not a 30-year hold | Fix-and-flip down payment funding |
| Mixed-use or 5+ unit commercial | Commercial property down payment funding |
| Earnest money only, not the full equity check | EMD funding |
| You can wait 45–90 days and want cheap long money | SBA is the wrong tool for a pure investment rental — stay on DSCR |
Gap funding is a property-side second. Unsecured down payment funding is a personal note. Do not treat them as synonyms.
Keywords this page is built for
People arrive here on short queries (DSCR down payment, rental down payment loan) and long ones (borrow down payment for DSCR loan and still cash flow, unsecured loan for investment property equity). The product is the same either way: a personal installment next to a 30-year rental mortgage. If you meant a flip, use fix-and-flip down payment funding. If you meant a 5+ unit or mixed-use building, use commercial property down payment funding. If you already closed the DSCR loan and need sofas, use Airbnb furniture financing.
What the application asks
Expect two years of personal tax returns, a FICO 8 report, identity, entity documents, and a use-of-funds statement that says investment-property equity. There is no published FICO floor on the unsecured file. Stronger credit and cleaner returns improve odds and pricing. The DSCR property file still needs a supportable rent schedule. Do not send the DSCR desk a personal installment and ask them to treat it as extra rent.
Risks that show up after closing
- Two clocks. The DSCR loan amortizes over 30 years. The unsecured note may be done in 5. Front-loaded personal payments are the stress, not the balloon on the rental.
- Refi does not automatically wipe the personal note. A later cash-out can repay it if equity is there. Model that as a plan, not a promise.
- Rate is quoted per file. Do not lock a spreadsheet at 6% because 6% is the bottom of the illustration band.
- Owner-occupancy kills the stack. If you move in, you have the wrong DSCR and the wrong unsecured disclosure.
How to apply
- Run the calculator until property DSCR is honestly above 1.0x and cash after both payments is a number you can live with.
- Submit a DSCR scenario or pick a loan type for the property with Jaken Finance Group.
- Submit the unsecured financing form for the equity check.
- Keep the two closing tables separate so the DSCR desk is not asked to swallow a personal installment as if it were PITIA.
Pre-qualify for DSCR down payment funding · DSCR loans · (833) 264-7776
Sources
- CFPB — Ability-to-Repay and Qualified Mortgage standards
- SBA — loan programs (contrast only — SBA is not this DSCR stack)
Unsecured pricing on a DSCR equity check is quoted by Preferred Funding Group per file and can sit anywhere in the illustration band. The calculator is an educational estimate, not a commitment. Jaken Finance Group originates the rental mortgage; it does not originate this personal note.