Wisconsin DSCR Loans for STR Financing
Grow Your Portfolio with DSCR Loans
Whether you're investing in STRs in Door County, rental homes in Milwaukee, or student housing in Madison, our DSCR loans
give Wisconsin investors a fast, flexible financing option built around rental income. These loans qualify you based on the property’s cash flow—not your W-2s, credit score, or tax returns. We assess whether the income is sufficient to support the loan. With reliable demand across tourism markets and major cities, Wisconsin is well-suited for real estate investors looking to scale. DSCR financing allows you to qualify with less hassle and build your portfolio around what matters most: strong-performing assets.
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 Wisconsin real estate investors?
A DSCR loan (Debt Service Coverage Ratio loan) is structured for real estate investors who want to qualify using the income of the property—not their own financial documents. If the asset generates enough income to cover the debt service, borrowers can often be approved without submitting W-2s or tax returns. This approach suits investors building STR or long-term portfolios through LLCs. In Wisconsin, where demand is high in markets like Milwaukee, Madison, and vacation areas like Door County, DSCR loans offer a fast, flexible financing alternative for scaling up.
How is DSCR calculated in a typical loan scenario for Wisconsin investors?
In Wisconsin, DSCR is calculated by dividing the property’s net operating income (NOI) by its annual debt service, which includes mortgage payments, taxes, and insurance. If a Wisconsin rental earns $102,000 in NOI and its yearly debt obligation is $85,000, the DSCR is 1.20. That means the property earns more than enough to cover loan costs, improving your financing odds. A 1.00 DSCR is generally the lender minimum in Wisconsin, but many prefer 1.15 or higher—especially in cities like Milwaukee, Madison, and Green Bay. Understanding DSCR in Wisconsin allows investors to evaluate property performance and secure stronger loan terms.
What is considered a good DSCR ratio when applying for financing?
In Wisconsin, a DSCR of 1.20 or above is typically seen as a healthy level by lenders. While 1.00 is the technical minimum, a higher ratio—like 1.20—gives you leverage when negotiating loan terms. A strong DSCR in Wisconsin helps investors qualify faster, secure better rates, and reduce reserve requirements. Whether you're purchasing in Milwaukee, Madison, or Green Bay, understanding DSCR benchmarks in Wisconsin can make a significant difference in your investment financing strategy.
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?
Wisconsin DSCR loans are evaluated based on the income generated by the rental property, not the borrower’s personal income or credit profile. Lenders in Wisconsin require documentation such as leases, STR income reports, or market rent estimates to establish cash flow. That income is then compared to annual debt payments to calculate the DSCR. If the ratio is 1.00 or greater, Wisconsin lenders may approve the loan. DSCR loans in Wisconsin are a flexible solution for growing your portfolio. Understanding how rental income is evaluated in Wisconsin ensures you're prepared with the right documents and expectations.
What’s the minimum debt service coverage ratio required for approval?
In Wisconsin, the minimum DSCR required to qualify for most loans is 1.00. While some Wisconsin lenders may consider DSCRs as low as 0.75, this typically requires stronger equity or borrower experience. A 1.20 DSCR or more is ideal in Wisconsin to improve approval speed and loan conditions, especially in cities like Madison, Milwaukee, or Green Bay. DSCR loans in Wisconsin let investors qualify using rental income rather than personal financials. Understanding Wisconsin’s DSCR minimums ensures a smoother process when financing income-producing properties.
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. DSCR loans in Wisconsin allow you to qualify based on how much your property earns—not what you report on your tax return. From Milwaukee to Madison, Wisconsin investors use this approach to skip delays and grow their portfolios with minimal friction. DSCR lending in Wisconsin supports both urban and regional rental strategies.
