Defy Mortgage
Defy Mortgage markets aggressively on LTV, and the numbers hold up under scrutiny: 85% LTV on SFR purchases for borrowers with 740+ FICO and loans under $1.5M. That is 5% more leverage than most competitors at the same credit tier. STR goes up to 80% LTV while most cap at 75%. They also accept FICO scores as low as 640, putting them among the most accessible lenders. Zero seasoning for BRRRR. The catch: they exclude 12 states, so coverage is narrower than the big national players. LLC vesting is allowed.
- 85% LTV on SFR purchase (740+ FICO, under $1.5M)
- 80% LTV on STR (vs 75% at most competitors)
- 640 FICO minimum (among the lowest in the market)
- No seasoning for BRRRR refinances
- LLC vesting allowed
Loan requirements
| Minimum DSCR | 1 (above median of 0.75) |
| Minimum FICO | 640 (below median of 660) |
| Max LTV (purchase) | 85% (#1 highest among 16 lenders) |
| Max LTV (cash-out) | Not disclosed |
| Min loan amount | Not disclosed |
| Max loan amount | Not disclosed |
| Prepayment penalty | 5-4-3-2-1 |
| BRRRR seasoning | None (zero seasoning) |
Programs and coverage
| Short-term rentals (STR) | Yes |
| Foreign nationals | Not disclosed |
| State coverage | 38 states, excludes 12 |
| Channel | Direct to investor |
Best for
- Borrowers rebuilding credit (low FICO threshold)
- Investors who want maximum leverage (85% LTV)
- Short-term rental (Airbnb/VRBO) investors
- BRRRR investors (zero seasoning)
How Defy Mortgage compares
Across the 16 DSCR lenders in our database:
- DSCR floor of 1 is stricter than the median (0.75). You need a healthier cash-flowing property to qualify here.
- FICO minimum of 640 is below the median (660), opening the door to more borrowers.
- 85% max LTV is among the highest in the market. More leverage means less cash out of pocket, but also less equity cushion.
- STR program available. 12 of 16 lenders in our dataset accept short-term rentals.
For a full side-by-side comparison, see the lender comparison matrix. Or use the DSCR loan qualifier to find which lenders match your specific deal.
Run your numbers
Before reaching out to Defy Mortgage, model your deal:
- DSCR Calculator to verify your property's debt service coverage ratio
- DSCR Loan Calculator to estimate monthly payments and qualification
- Airbnb/STR DSCR Calculator to model short-term rental income scenarios
- Cash-Out Refi Calculator to see how much equity you can pull out
- BRRRR Refinance Calculator to model the full buy-rehab-rent-refinance cycle
Frequently asked questions
Is Defy Mortgage a good DSCR lender?
Defy Mortgage is a legitimate DSCR lender with terms last verified on 2026-06-11. Whether they are a good fit depends on your specific deal. Their 1 DSCR floor is stricter than the market median of 0.75. Compare their terms against 2-3 other lenders before committing.
What is the minimum credit score for Defy Mortgage?
Defy Mortgage requires a minimum FICO score of 640. This is among the lowest in the DSCR market, making them accessible to borrowers with lower credit. Higher scores (740+) will qualify for better rates and higher LTV.
Does Defy Mortgage do short-term rental loans?
Yes, Defy Mortgage offers DSCR loans for short-term rentals (Airbnb, VRBO). STR programs typically come with slightly lower max LTV and potentially higher DSCR requirements compared to long-term rental programs.
Does Defy Mortgage work with foreign national investors?
Defy Mortgage has not publicly disclosed whether they offer foreign national programs.
What states does Defy Mortgage lend in?
Defy Mortgage's coverage: 38 states, excludes 12. DSCR lender state coverage changes over time based on licensing and regulatory requirements. Always confirm your state is covered before starting an application.
What is the prepayment penalty at Defy Mortgage?
Defy Mortgage's prepayment penalty structure is: 5-4-3-2-1. A 5-year step-down means the penalty decreases each year. On a $300,000 loan, that is $15,000 in year one, $12,000 in year two, and so on.