Washington DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're financing STRs in Seattle, vacation homes near Mount Rainier, or long-term rentals in Spokane, our DSCR loans
provide Washington investors with the flexibility and competitive rates they need to grow. These loans qualify you based on property income, not personal income or credit score. We look at whether the rental cash flow is enough to service the loan independently. Washington’s strong mix of urban, suburban, and tourism markets creates ideal conditions for portfolio expansion. With DSCR financing, you can act quickly on new investments without waiting on traditional income documentation.
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 Washington real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) helps investors qualify for property financing based solely on the income the asset generates. Lenders review whether the rental income can cover the loan’s full obligations, and approval is often possible without W-2s, tax returns, or personal DTI. This makes DSCR loans perfect for self-employed borrowers and portfolio investors. In Washington, where cities like Seattle, Spokane, and Tacoma have strong rental performance and competitive markets, DSCR financing allows investors to grow without the barriers of traditional underwriting.
How is DSCR calculated in a typical loan scenario for Washington investors?
In Washington, DSCR is calculated by dividing a property’s net operating income (NOI) by its total debt service over the year. For instance, if a Washington rental generates $114,000 in NOI and the debt payments total $95,000, the DSCR would be 1.20. That means the income is 20% higher than the annual loan cost—a good indicator of financial strength. While a 1.00 DSCR is often the baseline, many Washington lenders want to see 1.15 or above—especially in markets like Seattle, Spokane, or Tacoma. Understanding DSCR in Washington helps investors confidently evaluate deals and secure scalable financing.
What is considered a good DSCR ratio when applying for financing?
In Washington, a good DSCR ratio is usually 1.25 or higher due to the state’s elevated property values and tighter lending conditions. While 1.00 is technically the minimum, a 1.25 DSCR demonstrates that your property generates a healthy surplus of income relative to its debt obligations. This is especially important in high-demand markets like Seattle, Bellevue, and Tacoma. Understanding what makes a DSCR strong in Washington helps real estate investors secure favorable financing and reduce risk in a competitive environment.
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?
In Washington, DSCR lenders base loan approval on the income generated by the property—not the borrower’s personal income. Washington investors can use documentation like rental leases, STR history, or market rent analysis to demonstrate income. That income is then used to calculate the DSCR by dividing it by the property’s annual debt service. A minimum ratio of 1.00 is required for most DSCR loans in Washington. This method is ideal for borrowers who operate in high-cost, fast-moving markets. Understanding how rental income is evaluated in Washington is crucial for building a scalable real estate portfolio.
What’s the minimum debt service coverage ratio required for approval?
In Washington, most DSCR lenders require a minimum ratio of 1.00, ensuring the property produces sufficient income to cover loan payments. Some Washington lenders may approve DSCRs as low as 0.75, but higher reserve requirements often apply. A DSCR of 1.25 is common in high-cost Washington markets like Seattle, Bellevue, or Tacoma. DSCR loans in Washington are especially useful for short-term rental properties and self-employed borrowers. Understanding Washington’s DSCR minimum standards helps real estate investors better prepare for fast approvals and strong financing terms.
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. In Washington, DSCR loans provide a powerful alternative to traditional financing by using rental income for qualification. Whether you’re investing in Seattle, Spokane, or smaller STR markets, Washington borrowers gain speed and efficiency through this lending model. DSCR financing supports scalable growth across Washington’s diverse real estate landscape.
