West Virginia DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're purchasing STRs near Harpers Ferry, long-term rentals in Charleston, or small multifamily properties in Morgantown, our DSCR loans
offer West Virginia investors flexible, asset-based financing. These loans use your property’s rental income—not your personal income or credit history—to determine eligibility. We evaluate whether the asset generates enough cash flow to support the loan. West Virginia’s mix of outdoor recreation, affordable pricing, and college-town demand makes it a strong candidate for rental investment. With DSCR loans, you can expand your portfolio faster without the documentation hurdles of traditional lending.
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 West Virginia real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) is a real estate loan that bases approval on a property’s rental income instead of personal financials like tax returns or employment verification. Lenders determine whether the cash flow is sufficient to cover the property’s loan payments, taxes, and insurance. This method is especially helpful for investors expanding through LLCs or those with fluctuating income. In West Virginia, where investors target affordable rentals in cities like Charleston, Morgantown, and Huntington, DSCR loans provide a clear path to portfolio growth without red tape.
How is DSCR calculated in a typical loan scenario?
West Virginia real estate investors calculate DSCR by dividing a property's net operating income (NOI) by its total annual debt service. For example, if a rental in West Virginia earns $72,000 in NOI and has $60,000 in yearly loan obligations, the DSCR would be 1.20. This indicates that the property earns enough to comfortably support the loan. While most West Virginia lenders require a minimum DSCR of 1.00, higher ratios may result in better rates—especially in markets like Charleston, Morgantown, and Huntington. Understanding DSCR in West Virginia helps investors identify strong properties and qualify for flexible financing options.
What is considered a good DSCR ratio for West Virginia investors when applying for financing?
For West Virginia investors, a DSCR of 1.20 is generally considered a solid benchmark. Although lenders may approve a loan with a 1.00 ratio, higher DSCRs offer better loan terms and signal financial stability. Whether you're investing in Charleston, Morgantown, or Huntington, a 1.20 DSCR in West Virginia improves your chances of approval and reduces underwriting friction. Understanding what qualifies as a good DSCR in West Virginia helps you approach financing with greater clarity and 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?
Lenders in West Virginia approve DSCR loans by analyzing rental income from the property—not the borrower’s personal finances. In West Virginia, lenders review income sources like long-term leases, market rent studies, or STR revenue to determine net operating income. This income is divided by the property’s debt service to calculate the DSCR. A DSCR of 1.00 or above is typically required by most West Virginia lenders. DSCR loans in West Virginia are especially useful for self-employed or full-time investors. Understanding how rental income is evaluated in West Virginia helps ensure a smooth financing process.
What’s the minimum debt service coverage ratio required for approval?
West Virginia DSCR lenders typically require a minimum ratio of 1.00, confirming the property’s income matches its loan obligations. A few West Virginia lenders may allow DSCRs down to 0.75, but only for well-qualified borrowers with reserves or low LTVs. A DSCR of 1.20 or higher is ideal in West Virginia to improve approval chances and secure better terms. DSCR loans in West Virginia are well-suited for long-term rentals in markets like Charleston or Morgantown. Understanding West Virginia’s DSCR minimums helps investors approach lenders with confidence and reduced documentation burdens.
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. West Virginia borrowers use DSCR loans to avoid income verification and qualify with property cash flow. In Charleston and beyond, West Virginia investors benefit from faster approvals and a simpler loan process. DSCR lending in West Virginia is an efficient choice for building long-term rental portfolios.
