Capital Kings LLC

How much cash do I need to buy a $250K rental with a DSCR loan?

About $61,523, or 25% of the price, at 745 credit: $50,000 down (20%) plus $11,523 of closing costs. Have $67,232 in the bank, because the lender also verifies 3 months of the payment in reserves. With 700+ credit the down payment stays at 20%; the rate is what moves.

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Prefer to talk it through? Call or text Micah at (281) 636-5682.

Reviewed by Micah Foster, Founder & CEO · October 2026

Rates as of October 2026

$250,000 rental, $2,200 rent, 745 credit

Cash to close

$61,523

Down payment, 20%$50,000
Proof of funds with reserves$67,232

The deal, in pictures

Does the rent cover the payment?

1.16$2,200 rent ÷ $1,903 payment

Rent divided by the full monthly payment. Lenders want 1.00 or better.

Capital Kings · capitalkings.co · rates as of October 2026

What you spend, and what just sits in your bank

Spent at closing$61,523

Stays in your bank$5,709

Shown in your bank statements (proof of funds)$67,232

Reserves are 3 months of the payment. They stay in your account.

Capital Kings · capitalkings.co · rates as of October 2026

Cash to close: The money you bring to the closing table: down payment plus every closing cost.
Proof of funds: Cash the lender wants to see in your bank statements. Only the cash to close is spent; the rest stays yours.
Reserves: Months of payments or interest you show in the bank. They stay in your account.
DSCR: Rent divided by the full monthly payment. 1.00 means the rent exactly covers it.

The short answer, as of October 2026

DSCR loans qualify on the rent, not your income or tax returns.
There is no origination fee. Closing costs are lender fees, our 1% broker fee, title, insurance, the tax escrow, prepaid interest and the appraisal.
With 700+ credit the down payment stays at 20%. Credit moves the rate.

Capital Kings LLC is a broker, not a lender. We compare every file across 400+ lenders and send the term sheet with every fee on it before you sign.

Every dollar, line by line

A $250,000 single-family rental renting for $2,200 a month, 745 credit, 30-year fixed. The real term sheet, every line labeled by who gets paid:

Cash to close$61,523

Proof of funds to show$67,232

Where the $61,523 goes

Down paymentEquity$50,000
Lender fees, underwriting and legalLender$2,295
Broker feeBroker$2,000
Closing / titleTitle co$3,571
Property insuranceInsurer$1,250
Escrow setup, 3 months of taxesLender$1,250
Prepaid interestLender$607
Appraisal feeAppraiser$550

Proof of funds adds $5,709 of reserves, 3 months of the $1,903 payment, that stay in your account. The gold broker line is the only money Capital Kings earns.

A sample sheet for a made-up borrower, built the same way yours is. Yours takes about five minutes and doesn’t pull your credit.

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How do the options compare?

At 700 and up, the down payment and the closing costs barely move with credit. The rate does: 7.25% at the top against 7.88% at 700 to 719.

Cash to buy the same $250,000 rental, by credit

Credit	Down	Rate	Closing costs	Cash to close	Reserves	Proof of funds
760+	$50,000 (20%)	7.25%	$11,512	$61,512	$5,655	$67,167
740 to 759	$50,000 (20%)	7.38%	$11,523	$61,523	$5,709	$67,232
720 to 739	$50,000 (20%)	7.61%	$11,541	$61,541	$5,805	$67,346
700 to 719	$50,000 (20%)	7.88%	$11,564	$61,564	$5,916	$67,480

30-year fixed, single family, $2,200 a month of rent, 5-year step-down prepayment penalty, no origination fee. Taxes and insurance are estimated at 2% and 0.5% of the price until you have the real bills. Under 700 credit we price the file by hand. Rates as of October 2026.

Price my deal →Run your rental on the DSCR calculator DSCR loans by state

How does it actually work?

Below 700 the down payment grows: 75% loan to value at 680 to 699 ($62,500 down on this house) and 65% at 660 to 679. Those files still price, just with more down. The credit floor is 660.

Taxes here are estimated at 2% of the price until you have the real bill. A lower tax bill lowers the payment and helps the rent cover it.

What else do people ask?

How much cash do I need to buy a $250K rental with a DSCR loan?

About $61,523 at 745 credit: $50,000 down (20%) and $11,523 of closing costs, on a $250,000 house renting for $2,200. Plus $5,709 of reserves in your account, $67,232 in all. Rates as of October 2026.

What is the down payment on a DSCR loan?

20% at 700+ credit ($50,000 on a $250,000 house). 75% loan to value at 680 to 699 and 65% at 660 to 679, so the down payment grows below 700.

What are the closing costs on a DSCR purchase?

On this house, $11,523: $2,295 of lender fees, a $2,000 broker fee, $3,571 for title, $1,250 of insurance, $1,250 of escrow, $607 of prepaid interest and $550 for the appraisal. There is no origination fee.

How much do I need in reserves for a DSCR loan?

3 months of the full payment on a purchase. On this house that is $5,709 against a $1,903 payment. It stays in your account; it is not spent at closing.

What rate will I get on a DSCR purchase?

At 80% loan to value, 7.25% at 760+ credit and 7.38% at 745, 30-year fixed with a 5-year step-down prepayment penalty, as of October 2026. We compare every DSCR file across our network before you sign.

Does the rent have to cover the whole payment?

Yes, at a 1.00 DSCR or better. $2,200 of rent against a $1,903 payment is 1.16. If the rent is short, the loan gets smaller and the down payment grows.

Can I buy my first rental with a DSCR loan?

Yes. DSCR loans qualify on the property’s rent, not your experience or your tax returns. A first rental prices the same as a tenth.

Do you pay a referral fee if I send you an investor?

Yes. We pay $500 to anyone who refers a real estate investor, realtors, wholesalers, contractors, other investors and lenders included, every time that investor closes a loan with us, for life. It comes out of our broker fee, so it never changes the investor’s terms. The details are on our referral program page.

Is Capital Kings the lender?

No. Capital Kings LLC is a broker, not a lender. We compare DSCR lenders from a network of 400+, and our broker fee is one labeled line on the term sheet before you sign.

Which questions have worked examples?

Founder & CEO

Micah Foster

Micah brokers fix and flip, DSCR and new construction loans for real estate investors across 38 states. He founded Capital Kings LLC to give investors a broker who compares the market on their behalf instead of pitching one lender’s product, and every term sheet is itemized down to the last fee.

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About five minutes to a real term sheet for your deal. No credit pull, every fee on the page.

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