How Much Down Payment Does a Non-QM Loan Require?
One of the most common questions about Non-QM loans is how much you need to put down. The answer varies by program, credit score, loan amount, property type, and documentation type — but the range is wider and more flexible than many borrowers expect.
Down Payment Is the Flip Side of LTV
Down payment percentage equals 100% minus the maximum LTV allowed. So if a program allows 80% LTV, the minimum down payment is 20%. If it allows 90% LTV, you only need 10% down. Understanding the LTV grid for your specific scenario is the key to knowing what you need.
Owner-Occupied Primary Residence
This is where Non-QM programs can be most flexible. On primary residence purchases, the strongest borrower profiles (high FICO, strong income documentation, loan amount at or below $1M) can access LTVs up to 90%, meaning a 10% down payment. This is comparable to conventional financing with a high credit score.
| Loan Amount | Min Credit Score | Max LTV (Primary Purchase) | Min Down Payment |
|---|---|---|---|
| Up to $1,000,000 | 740 | 90% | 10% |
| Up to $1,000,000 | 660 | 80% | 20% |
| Up to $1,500,000 | 720 | 85% | 15% |
| Up to $2,000,000 | 700 | 80% | 20% |
| Up to $2,500,000 | 700 | 75% | 25% |
Investment Properties
Investment property purchases through income-based Non-QM programs typically allow LTVs up to 80–85% for the strongest profiles, meaning down payments of 15–20%. DSCR investment programs typically cap at 75–80% LTV on purchase, requiring 20–25% down depending on DSCR and credit score.
Second Homes
Second home LTVs fall between primary and investment — typically up to 80–85% on purchase for qualifying profiles, translating to a 15–20% down payment range.
How Credit Score Affects Down Payment
Credit score is one of the primary drivers of maximum LTV on Non-QM programs. Borrowers with FICO scores of 720+ can access the highest LTVs. As the credit score decreases, the maximum LTV decreases accordingly — meaning a larger down payment is required to compensate. Always run your specific scenario to see exactly where you land.
Key Takeaways
- Non-QM down payments range from 10% to 30%+ depending on the scenario
- As low as 10% down on primary residence purchases for high-FICO borrowers on loans up to $1M
- Investment properties generally require 20–25% down
- Higher credit score = higher max LTV = lower required down payment
- Loan amount, occupancy type, and documentation method all affect the LTV grid
Serving borrowers throughout California — Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County, and the greater Southern California region including Santa Ana, Irvine, Anaheim, Huntington Beach, Fullerton, Garden Grove, and surrounding communities.