Kansas DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're purchasing duplexes in Wichita, STRs in Kansas City, or long-term rentals in Topeka, our DSCR loans
give Kansas investors the flexibility and terms needed to expand their holdings. These loans are based on property income, not personal financials, allowing investors to qualify without the traditional burdens of income verification or credit scrutiny. We assess your property’s ability to generate cash flow and service the debt. Kansas offers affordable entry points and stable demand, making it ideal for both short-term and long-term strategies. With DSCR financing, you can act quickly in competitive markets, build equity faster, and scale your portfolio on your terms.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
Wondering if you qualify for investment property financing in your area?
We offer lending services in all 50 states!
Frequently Asked Questions
What is a DSCR loan and how does it work for Kansas real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) helps investors qualify for financing based on property income instead of personal income, credit scores, or employment documentation. The loan is generally approved when the property's rental income exceeds the total debt obligations. This method works well for portfolio investors, self-employed borrowers, and those purchasing through LLCs. In Kansas markets like Wichita, Topeka, and Kansas City, DSCR loans allow investors to move quickly on high-yield opportunities without being limited by traditional lender requirements.
How is DSCR calculated in a typical loan scenario for Kansas investors?
In Kansas, DSCR is calculated by dividing the property's net operating income (NOI) by its total annual debt service—including mortgage payments, taxes, and insurance. For example, if a Kansas rental generates $90,000 in NOI and carries $75,000 in annual debt obligations, the DSCR is 1.20. This means the property’s income exceeds the loan cost by 20%, which increases your likelihood of loan approval. Most Kansas lenders look for a minimum DSCR of 1.00, though stronger ratios are encouraged—especially for investors in markets like Wichita, Topeka, and Overland Park. Understanding DSCR in Kansas allows investors to evaluate potential cash flow and better navigate financing options across the state’s real estate landscape.
What is considered a good DSCR ratio when applying for financing?
Kansas lenders generally consider a DSCR of 1.20 to be healthy. A 1.00 ratio might pass minimum underwriting guidelines, but higher ratios—like 1.20 or above—reduce the lender’s risk and often result in better interest rates and fewer reserve requirements. Investors buying rentals in Wichita, Topeka, or Overland Park should aim for properties that exceed basic DSCR thresholds. A good DSCR in Kansas not only strengthens your financing application but also reflects the long-term profitability of the asset. Knowing these benchmarks helps you structure deals with confidence.
Can I qualify for a DSCR loan if my personal income is limited?
Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.
How does a lender evaluate rental income when approving a DSCR loan?
Kansas lenders assess DSCR loans by looking at the rental income generated by the property—not the borrower’s job or tax returns. In Kansas, lenders use income from leases, market rent studies, or short-term rental platforms to estimate net operating income. That amount is then compared to the property's annual debt obligations to calculate the DSCR. If the DSCR is 1.00 or higher, Kansas investors can qualify. DSCR loans in Kansas provide a flexible path for scaling rental portfolios. Understanding how rental income is evaluated in Kansas can give you a financing edge in competitive markets.
What’s the minimum debt service coverage ratio required for approval?
In Kentucky, the minimum DSCR to qualify for most loans is 1.00, showing that the rental property’s income fully covers annual debt obligations. A few Kentucky lenders may approve loans with DSCRs as low as 0.75, but only when backed by strong reserves or a low-risk property profile. A DSCR of 1.20 or more is ideal for securing favorable terms in Kentucky markets like Louisville, Lexington, and Bowling Green. DSCR loans in Kentucky are well-suited for investors scaling portfolios without using W-2 income. Understanding the DSCR thresholds in Kentucky helps streamline your application and avoid unnecessary friction.
Who should consider using a DSCR instead of a traditional loan?
These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. Kansas real estate investors prefer DSCR loans when scaling quickly or working with variable income. In cities like Wichita or Overland Park, Kansas borrowers can qualify through property cash flow, avoiding income verification delays. DSCR lending in Kansas supports growth with efficient, income-based approvals.
