DSCR loans for Washington rental investors
Qualify on your property's rental income, not your personal tax returns. For some eligible loans under $400,000, a traditional appraisal and title insurance policy may not be needed.
Apply online Call 425-260-3482Under $400,000: a faster, lighter process
For eligible DSCR loans under $400,000, some programs may use:
- An automated valuation in place of a traditional appraisal, when enough property data is available.
- An electronic lien search in place of a traditional title insurance policy.
- A mostly online application and closing.
Not every property or loan qualifies. An appraisal, title insurance or other documents may still be required based on the property, the data available and program guidelines, which can change. Loans of $400,000 or more follow standard appraisal and title requirements.
How qualifying works
The debt service coverage ratio compares a property's rent to its monthly payment, including taxes, insurance and any HOA dues. Programs set their own minimum ratios.
Properties
Commonly single-family rentals, condos, townhomes, PUDs and 2 to 4 unit properties. Short-term rental eligibility varies.
Uses
Purchase, rate-and-term refinance or cash-out refinance on investment property. Business purpose only; not for a home you live in.
Larger rental, 5+ units or a commercial property? See DSCR and investor loans at JG Commercial Loans.
DSCR questions
What is a DSCR loan?
A debt service coverage ratio loan is a business-purpose loan for investment property. Qualification focuses mainly on whether the property's rent covers its payment, rather than your personal income.
Is an appraisal or title insurance needed under $400,000?
For some eligible DSCR loans under $400,000, a program may use an automated valuation instead of a traditional appraisal, and a lien search instead of a traditional title insurance policy. Eligibility depends on the property, data available and program guidelines, and an appraisal or title policy may still be required.
Can I use a DSCR loan on my own home?
No. DSCR loans are only for non-owner-occupied investment properties used for business purposes.
What properties may qualify?
Programs commonly consider single-family rentals, condos, townhomes, PUDs and 2 to 4 unit properties. Short-term rental eligibility varies.
Talk with Jason about your rental
I've been helping Washington families with home loans since 1993. Call, text or send a note. You'll reach me, not a call center.
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