DSCR Loans
DSCR (Debt Service Coverage Ratio) loans are designed for real estate investors. Instead of personal income documentation like W-2s, qualification is based on the property's rental income relative to its debt — making it ideal for investors with complex income.
What Are DSCR Loans?
DSCR (Debt Service Coverage Ratio) loans are designed for real estate investors. Instead of personal income documentation like W-2s, qualification is based on the property's rental income relative to its debt — making it ideal for investors with complex income.
Peter Irungu (Mortgage Loan Originator, NMLS #2751063) helps homebuyers across Pierce & King County understand whether DSCR is the right fit and guides you through every step — from pre-qualification to closing.
Key Benefits
No W-2 Needed
Qualify on the property's cash flow, not your tax returns.
Investor Friendly
Built for buyers expanding rental portfolios.
Faster Closing
Streamlined documentation can speed up closing.
Portfolio Growth
Finance multiple investment properties.
Who Qualifies?
Eligibility requirements vary by program and lender. Here's a general overview:
- Property must be a 1–4 unit investment property
- DSCR (rental income ÷ debt) typically 1.0 or higher
- Minimum credit score requirements apply
- Down payment typically 20–25%
- Property must generate sufficient rental income
How It Works
Apply
Share your goals in a quick, no-obligation pre-qualification.
Get Approved
Peter shops multiple lenders to find competitive rate options for you.
Close
Sign final documents and get your keys.
Rates & Terms
Rates shown are sample scenarios for illustrative purposes only. Actual rate and APR will vary based on credit profile, loan amount, property type, and market conditions. Contact Peter Irungu for a personalized quote.
Pricing varies by program & profile
DSCR Loans rates and terms depend on the lender, loan amount, property, and your qualifications. Peter will review your situation and find competitive options from our network of lenders.
Get Your Personalized Quote
Sample rates are just a starting point. Your actual rate depends on your unique profile. Peter will review your situation and find competitive options from our network of lenders.
Start My Pre-QualificationFrequently Asked Questions
What is a DSCR loan for rental property investors in Washington State?
A debt service coverage ratio loan is a type of investment property financing that evaluates a property's qualifying rental income relative to its debt obligations. Depending on the loan program, a borrower may qualify primarily through rental property cash flow rather than traditional personal employment income. DSCR loans are private financing products; NEXA Lending is a private mortgage company not affiliated with any government agency.
Can I get a DSCR investment property loan in Tacoma without W-2 income?
Some DSCR mortgage programs do not require traditional W-2 employment income verification because they focus on qualifying property cash flow. Lenders may still review credit, assets, rental income documentation, and property value. NEXA Lending is a private mortgage company not affiliated with any government agency.
What DSCR ratio do lenders require for rental properties in Pierce County?
Some DSCR lenders prefer a ratio of at least 1.0, meaning qualifying rental income equals or exceeds the debt payment measure used by that program. Other programs may require 1.15–1.25 or accept lower ratios with additional restrictions. NEXA Lending is a private mortgage company not affiliated with any government agency.
Can I use a DSCR loan to buy a duplex or fourplex in Tacoma?
Many DSCR programs finance eligible one- to four-unit residential investment properties, including duplexes, triplexes, and fourplexes. Lenders evaluate property income, appraisal results, cash reserves, credit, and other underwriting criteria. NEXA Lending is a private mortgage company not affiliated with any government agency.
How much down payment do I need for a DSCR rental property loan in Washington?
Many DSCR programs require approximately 20%–25% down, although some have different requirements based on credit, cash flow, property type, and loan characteristics. Investors should also account for closing costs, reserves, maintenance, and vacancy expenses. NEXA Lending is a private mortgage company not affiliated with any government agency.
Can I use projected rental income instead of my personal salary to qualify for a DSCR loan?
Certain DSCR programs use qualifying rental income supported by a lease, appraisal rent schedule, or other permitted valuation method. Lenders calculate cash flow according to their program-specific standards, so projected income may not always be accepted at face value. NEXA Lending is a private mortgage company not affiliated with any government agency.
Can I refinance a rental property in Puyallup using a DSCR loan?
Some DSCR programs permit rate-and-term refinancing or cash-out refinancing of qualifying investment properties. Eligibility may depend on equity, rental cash flow, ownership seasoning, credit, and lender requirements. NEXA Lending is a private mortgage company not affiliated with any government agency.
Are DSCR loans a good option for Tacoma investors purchasing multiple rental properties?
DSCR financing may help investors evaluate additional rental property purchases when conventional loan qualification becomes restrictive. However, investors should compare interest expense, loan fees, prepayment penalties, reserves, and property cash flow before proceeding. NEXA Lending is a private mortgage company not affiliated with any government agency.
Talk to Peter About DSCR
Have questions about dscr loans? Share a few details and Peter will reach out within one business day.
Ready to Explore Your DSCR Options?
Start with a no-obligation conversation. No credit pull required to get started.