Down Payment Guide
Down Payment Requirements by Loan Program
Side-by-side minimum down payment across every Total Quality Lending program — DSCR Standard, DSCR Foreign National, multi-unit DSCR, and Prime Time bank statement. Numbers come straight from the guideline matrix our underwriters work from.
Minimum down payment by program
| Program | Min. Down Payment | Max LTV | Best Tier Unlocks At |
|---|---|---|---|
| DSCR Standard | 20% | 80% | 740 FICO + $2.5M loan, or 720 FICO + $1.5M loan |
| DSCR (state overlay: CA, CT, FL, IL, NJ, NY) | 25% | 75% | State overlay caps purchase LTV at 75% |
| DSCR Foreign National | 25% | 75% | Top-tier FN credit + standard loan amounts |
| Multi-Unit DSCR (2-4 unit) | 25% | 75% | 700 FICO + $1.5M loan amount |
| Prime Time Bank Statement (primary residence) | 10% | 90% | 720+ FICO + loan ≤ $1.5M |
| Prime Time Bank Statement (investment) | 15% | 85% | 720+ FICO + loan ≤ $2M |
| Prime Time alt-doc (P&L Only / Written VOE / Asset Utilization) | 20% | 80% | 680+ FICO + loan ≤ $2M |
Gift fund rules — what counts as your money
TQL DSCR: gift funds are allowed AFTER the borrower contributes their first 10% from their own seasoned funds.
Foreign National DSCR: gift funds are NOT permitted. All down-payment, closing-cost, and reserve funds must come from the borrower’s documented sources.
Prime Time (Bank Statement, Standard Doc, P&L, VOE, 1099, Asset Util): minimum borrower contribution is 5% for primary residence and second home, 10% for investment property. The remainder may be gifted by an eligible donor with a properly documented gift letter and source-of-funds evidence.
Down payment — FAQs
What's the lowest down payment for an investment property?
At Total Quality Lending, the lowest minimum down payment on an investment-property loan is 15% via the Prime Time Bank Statement path (85% LTV) at the top FICO/loan tier. DSCR — the most common investor product — requires 20% down (80% LTV) at the top tier, or 25% down (75% LTV) in California, Connecticut, Florida, Illinois, New Jersey, and New York.
Can I use gift funds for the down payment?
Yes — with conditions. On TQL DSCR, gift funds are allowed AFTER the borrower contributes their first 10% from their own funds. On Foreign National DSCR, gift funds are NOT permitted; all funds must be the borrower's. On Prime Time, the minimum borrower contribution is 5% for primary residence and second home, and 10% for investment property; the remainder may be gifted from an eligible donor (immediate family or fiance/domestic partner, typically) with a properly documented gift letter and donor's source-of-funds evidence.
Are there down-payment assistance programs?
Down-payment assistance (DPA) programs are administered by state and local housing authorities and are typically restricted to owner-occupied primary residences with income limits and first-time-buyer requirements. Investment properties — DSCR, Foreign National, multi-unit — are not DPA-eligible. Borrowers using Prime Time for a primary residence should check their state housing finance authority's DPA programs separately; TQL does not directly originate DPA-paired files.
What's the lowest down payment for a primary residence at TQL?
10% via Prime Time Bank Statement (90% LTV) at 720+ FICO with a loan amount of $1.5M or less. Self-employed borrowers who don't want to use tax returns most often land here.
Do I need reserves on top of the down payment?
Yes. Reserves (cash held after closing in liquid accounts) scale with LTV on Prime Time: 3 months PITIA at LTV ≤ 80%, 6 months at LTV 80.01-85%, 12 months above 85%, with bumps to 9 months above $1.5M loan and 12 months above $2.5M loan. On DSCR, plan for 6 months PITIA in reserves as a baseline.
Does the state overlay (CA, CT, FL, IL, NJ, NY) apply to bank statement loans too?
Yes. Connecticut, Florida, Illinois, New Jersey, and New York have Prime Time state overlays that cap purchase LTV at 85% (15% minimum down) and refinance LTV at 80%, with a maximum loan amount of $2M. Plan accordingly when your subject property sits in any of those five states.
Not sure how much you’ll need down?
Tell us your FICO, loan amount, and target property — we’ll quote the exact minimum down across every program you qualify for.