Debt Service Coverage Ratio (DSCR) Loans in Washington


You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.

Find a DSCR Loan lender

Debt Service Coverage Ratio Loans

Invest in your future

JD MORTGAGE® connects you with lenders who want to help you invest in your future. We find the lenders that offer terms specially tailored to your goals—for commercial real estate, multifamily properties, and cash-flowing assets.

Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your DSCR financing needs.

Get Your DSCR Loan Rate

invest in your future

Other professionals love us.

We think you will too.

Read More Reviews
Mary Kate Raffetto

I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP

Clint Cowan

For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann

Best DSCR Loans in Washington

Key Terms

  • DSCR loans in Washington allow investors to leverage rental income, easing qualification requirements compared to traditional loans.
  • The focus on property income makes DSCR loans ideal for investors with fluctuating personal finances or diverse income streams.
  • While DSCR loans may carry higher interest rates, their flexible terms and streamlined approval process offer significant benefits to savvy investors.

Star
Biglaw Investor Premium Lender

You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.

Easy Street Capital

(All 50 States Except NV, ND, SD)

Apply Now Contact Send Email

Online

usually responds within 30 minutes

Presented by

Easy Street Capital

(All 50 States Except NV, ND, SD)

Easy Street Capital’s EasyRent loan program provides DSCR loans for cash-flowing investment properties. Flexible underwriting and ultra-competitive terms.

Loan Products

  • DSCR Loans: With rates starting at just 5.99% interest rates, 20% minimum down payment, no DSCR minimum, vacant properties OK.
  • Short Term Rental Loans: Leading loans for short term rentals (Airbnb); qualify with AirDNA projections and no operating history required. Rural, Vacation, and Seasonal Markets OK.
  • BRRRR Loans: Cash-out refinance DSCR Loans up to 75% with low seasoning requirements, 100% of capital invested returned in as little as 3 months
  • Multifamily Loans: 5-10 Unit properties financed on 30-year fixed rate loans with interest-only and easy qualification options. Mixed Use Loans: DSCR Loans for Mixed Use properties up to 8 units (including up to 3 commercial units)
Lender Facts
Minimum Loan

$100,000

What We Do
  • DSCR Loans Rates starting at 5.99%
  • 30-Year Fixed Rate; 10-Year Interest-Only Available
  • No DTI, No W2, No Tax Returns Needed
  • Borrow through an LLC or Entity
Not Available
  • No renovations needed
  • No properties > 10 units
  • No owner-occupied properties
  • No credit below 640

Star
Biglaw Investor Premium Lender

You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.

New Silver Lending

(All 50 States Except AL, AK, ID, LA, NV, ND, OR, SD, UT, VT)

Apply Now Contact Send Email

Online

usually responds within 30 minutes

Presented by

New Silver Lending

(All 50 States Except AL, AK, ID, LA, NV, ND, OR, SD, UT, VT)

Expand your rental portfolio with New Silver’s lightning-fast DSCR loans, closing in days, not weeks. Get approved online in under 5 minutes, including an instant online term sheet.

Ready to grow your portfolio with confidence? Apply now and see how fast and easy real estate investing can be with New Silver Lending at your side.

Loan Products

  • DSCR Loans: A 30-year fixed loan tailored for rental properties—ideal for growing your rental portfolio. Up to 80% LTV. No minimum DSCR required.
  • Fix & Flip Loans: Hard money loans designed for purchasing, renovating, and reselling investment properties—perfect for executing quick fix-and-flip projects.
  • Ground Up Loans: Up to 100% construction financing for residential builders—ideal for developers ready to break ground.
Lender Facts
Minimum Loan

$150,000

What We Do
  • 30-year fixed rate—no rate surprises
  • No minimum DSCR—flexibility you need
  • Up to 80% LTV—maximize your leverage
  • Instant term sheet
  • Instant proof of funds
  • Special discounts for repeat borrowers
  • Short Term Rental Loans also available
Not Available
  • No rural properties
  • No properties > 8 units
  • No owner-occupied properties
  • No 100% financing

Star
Biglaw Investor Premium Lender

You’re our first priority. We want you to understand how we make money. This post may contain affiliate links. Biglaw Investor may receive a commission at no additional cost to you if you click on the links in this article. This may influence which products we write about and where and how the products appear on a page. However, it does not influence our evaluations. Our opinions are our own. In some circumstances, if you work with us, we are able to provide an incentive to work with our advertising partners that is unavailable if you work with our advertising partners directly. Our partners cannot pay us to guarantee favorable reviews of their products or services. To read more about how we make money, click here.

Ridge Street Capital

(AL, AK, AR, CO, CT, DE, FL, GA, HI, IN, IA, KS, KY, ME, MD, MA, MS, MT, NE, NM, NY, OH, OK, PA, RI, SC, TN, TX, VT, WA, WV, WI, WY)

Apply Now Contact Send Email

Online

usually responds within 30 minutes

Presented by

Ridge Street Capital

(AL, AK, AR, CO, CT, DE, FL, GA, HI, IN, IA, KS, KY, ME, MD, MA, MS, MT, NE, NM, NY, OH, OK, PA, RI, SC, TN, TX, VT, WA, WV, WI, WY)

Ridge Street’s DSCR loans allow real estate investors to purchase and refinance rental properties in 35 states, with industry-leading pricing and fast closing times for both long- and short-term rentals.

Loan Products

  • DSCR Loans For Long Term Rentals: Rates from 6.0% on cash flowing rental properties. Up to 80% LTV with a DSCR of 1.0 required.
  • DSCR Loans For Short Term Rentals: Rates from 6.75% on Airbnb and VRBO properties. Monthly rent used in DSCR calculation is based on AirDNA projected cashflow instead of 12 month track record.
  • DSCR Loans For Cash Out and Refinance: Ideal for BRRRR investors, we offer refinancing and cash-out options up to 80% LTV.
  • DSCR Loans For Multifamily Properties: 30-year loans for multifamily properties up to 25 units, with up to 80% LTV and a maximum loan amount of $2M.
Lender Facts
Minimum Loan

$50,000

What We Do
  • DSCR Loan Rates starting at 6.0%
  • Minimum DSCR of 1.0 required
  • Up to 80% LTV on purchases and refinances
  • Up to 75% LTV on cash-outs
  • Short-term rentals allowed
  • 660+ credit score required
  • 0% origination fee available
Not Available
  • No 100% financing
  • No properties > 25 units
  • No owner-occupied properties
  • No credit score below 660

From Seattle’s bustling streets to its stunning natural landscapes, Washington presents prime real estate investment opportunities. DSCR loans are particularly advantageous here, allowing investors to leverage property income rather than personal financial histories, thus expanding their prospects in Washington’s diverse market.

The homeownership rate in Washington stands at [fred_homeownership state=”WA”], according to the Federal Reserve. This robust rate reflects a stable housing market and underscores the confidence Washingtonians have in investing in their local real estate.

Washington’s balanced real estate market is further highlighted by a [fred_vacancy_rate state=”WA”] vacancy rate. This metric, provided by the US Census Bureau, is crucial for investors utilizing DSCR loans as it affects how swiftly properties can be turned into profit-making ventures.

The median listing price of homes in Washington, noted at $599,000 by the St. Louis Fed, showcases a market that accommodates diverse buying preferences—from affordable family homes to upscale residences.

The upcoming sections of this guide will delve deeper into the strategic employment of DSCR loans in Washington. We’ll discuss the best approaches for selecting providers, navigating the market effectively, and maximizing returns in this dynamically vibrant state.

How do Washington DSCR loans work?

This type of loan operates by leveraging the rental income generated by an investment property to determine loan eligibility, rather than relying on the borrower’s personal income or credit score. This approach focuses on the debt service coverage ratio, a key metric that compares the property’s net operating income to its debt obligations. In Washington, lenders utilize this ratio to ensure that the rental income is sufficient to cover the mortgage payments, providing a clear picture of the property’s financial performance.

DSCR loans in Washington are tailored for real estate investors who may have fluctuating personal incomes or complex financial backgrounds. These loans prioritize the property’s cash flow, making them an attractive option for those who invest in rental properties, including single-family homes, multifamily units, and short-term rentals. By emphasizing the income-generating potential of the property, lenders can offer more flexible loan terms and potentially higher loan amounts.

The approval process for DSCR loans is typically more streamlined compared to traditional mortgage loans. Lenders require less extensive documentation of personal income, such as tax returns or bank statements. Instead, the focus is on verifying the property’s rental income and ensuring it meets the necessary debt service coverage ratio. This can lead to quicker approvals and faster access to funds, which is crucial in a competitive real estate market like Washington.

Interest rates for DSCR loans might be higher than conventional loans due to the perceived risk, but the benefits of quick approval and flexible terms often outweigh this drawback for many real estate investors. Additionally, these loans usually offer an option to refinance, allowing investors to cash-out or adjust their loan terms based on the performance of their rental properties.

Is a Washington DSCR loan right for you?

Determining if a DSCR loan product is right for you as a real estate investor in Washington involves evaluating your investment properties’ income potential and your overall financial strategy. DSCR loans are particularly beneficial for borrowers who own or plan to acquire long-term rental properties that generate strong and consistent cash flow. If your rental properties in cities like Seattle or Tacoma have robust rental income, a DSCR loan could provide the financing you need without the stringent requirements of traditional loans.

For real estate investors with lower personal income or credit scores, DSCR loans offer a viable alternative. These loans focus on the property’s income rather than the borrower’s personal financial history, making them accessible to a broader range of investors. The ability to qualify based on rental income can be a significant advantage, especially for those with multiple income streams or non-traditional employment.

However, it is essential to consider the higher interest rates associated with DSCR loans. These rates reflect the increased risk for lenders and can result in higher monthly payments. Ensuring that your rental income comfortably covers these payments is crucial. Additionally, the requirement for a substantial down payment can be a barrier for some investors, so it’s important to plan your finances accordingly.

Another factor to consider is the flexibility in loan terms. DSCR loans often come with options for cash-out refinancing and varied loan-to-value ratios, which can be beneficial for expanding your real estate portfolio. The streamlined underwriting process and reduced need for personal income documentation can expedite your access to funding, allowing you to act swiftly in acquiring new properties or refinancing existing ones.

In summary, a DSCR property loan is a powerful tool for real estate investors looking to leverage the income potential of their rental properties. By focusing on the debt service coverage ratio and the property’s cash flow, these loans offer a flexible and efficient financing solution. Assessing your properties’ income potential and understanding the loan terms will help you decide if a DSCR loan aligns with your investment goals in Washington’s dynamic real estate market.

Examples of investors who take out a DSCR loan in Washington

Washington, with its thriving cities like Seattle and beautiful natural landscapes, offers a wealth of opportunities for real estate investments. DSCR loans are particularly advantageous here, enabling investors to focus on property income. Here are two examples of investors using DSCR loans in Washington:

Example of a real estate investor: Imagine Alex, a real estate investor in Seattle planning to purchase a multi-family residential property in a growing neighborhood. By utilizing a DSCR loan, Alex can qualify for the loan based on the projected rental income from the property rather than his personal financial history. This strategy allows him to secure the necessary financing to add a valuable asset to his portfolio, capitalizing on Seattle’s high demand for rental housing.

Example of a REIT: Consider Evergreen Trust, a REIT specializing in residential properties in Tacoma. By using a DSCR loan, the Trust can finance the acquisition of a new apartment complex based on the rental income it generates. This strategy allows the REIT to expand its holdings without overextending its existing capital, capitalizing on Tacoma’s strong rental market.

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

Save more money than your friends

One email each week covers personal finance, financial independence, investing and other stuff for lawyers that makes you better.