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DSCR / Rental Loans

DSCR Loans
in Washington State

No Tax Returns. No Income Verification. Your Property's Cash Flow Qualifies.

Rental property financing built for investors who are doing everything right — maximizing depreciation, writing off expenses, structuring through entities — and still getting declined because their tax return doesn't tell the full story. DSCR loans fix that problem.

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How DSCR Loans Work

The Property Pays the Debt Service. That's the Underwrite.

DSCR stands for Debt Service Coverage Ratio. The formula is simple: DSCR = Gross Monthly Rental Income ÷ Total Monthly PITIA (Principal, Interest, Taxes, Insurance, HOA). If your ratio meets the lender's minimum — typically 1.0 or higher — the loan qualifies. Your personal income never enters the equation.

This is the preferred product for investors who are self-employed, own multiple properties, or have used legal tax strategies that reduce their reported income on paper. Real estate investors are supposed to minimize taxable income. DSCR lenders understand that.

DSCR Example

A rental property in Yakima generates $2,000/month in rent. The PITIA on the loan is $1,600/month.

DSCR = $2,000 ÷ $1,600 = 1.25 — qualifies at most lenders.

Who DSCR Loans Are Built For

  • Investors building a rental portfolio who want to scale beyond conventional loan limits
  • Self-employed investors whose tax returns understate actual cash flow
  • Investors using depreciation, cost segregation, or entity structuring
  • BRRRR investors who need the refinance leg without income documentation
  • Short-term rental (Airbnb / VRBO) investors in Washington State markets
Loan Terms at a Glance
Loan Amount$100,000 – $3,000,000+
Terms30-year fixed and ARM options
DSCR Min1.0 typical (some below 1.0)
LTVUp to 80% purchase / 75–80% refi
PropertiesSFR, 2–4 unit, condo, STR
Credit Min620 (some programs lower)
Tax ReturnsNot required
Have a Rental Deal?

Talk through the numbers before you apply.

I can tell you whether your deal qualifies and what program fits — before you submit anything. No cost, no pressure.

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DSCR vs Conventional

Why Investors Choose DSCR Over Conventional Financing

FactorDSCR LoanConventional
Tax Returns RequiredNo — property income qualifiesYes — 2 years personal returns
Income VerificationNo W-2s or employment verificationFull personal DTI required
Property LimitNo limit on financed propertiesFannie Mae cap at 10 properties
Closing Speed15 – 30 days30 – 60 days
Self-Employed FriendlyYes — by designOften problematic
Portfolio ScalabilityDesigned to repeatGets harder with each property
Common Questions

Questions Investors Ask About DSCR Loans

What is a DSCR loan and how does it work?

A DSCR loan — Debt Service Coverage Ratio loan — is a rental property loan that qualifies based on the income the property generates, not the borrower's personal income. No tax returns, W-2s, or employment verification required. The lender divides the property's gross monthly rental income by the total monthly mortgage payment (PITIA). If the ratio meets the minimum — typically 1.0 or higher — the loan qualifies.

Do I need tax returns to get a DSCR loan?

No. DSCR loans do not require personal tax returns, W-2s, or employment verification. Qualification is based entirely on the property's rental income relative to the mortgage payment. This makes DSCR loans the preferred product for self-employed investors, business owners, and investors who use depreciation strategies that reduce reported income on paper.

What DSCR ratio do lenders require?

Most DSCR lenders require a minimum ratio of 1.0, meaning the property's rental income at least equals the mortgage payment. Many programs prefer 1.25 or higher for the best rates and terms. Some lenders will go below 1.0 for borrowers with strong credit and lower LTV. The exact requirement varies by lender and program.

Can I use a DSCR loan for a BRRRR strategy?

Yes. DSCR loans are one of the most common tools for the refinance leg of a BRRRR strategy. Most lenders require 3 to 6 months of seasoning after the property is stabilized and rented, then underwrite based on current rental income rather than personal income documentation.

Can I get a DSCR loan for an Airbnb or short-term rental?

Yes. Several lenders in Endeavance Capital's network offer DSCR programs that use projected short-term rental income based on market data sources such as AirDNA. This allows STR investors to finance a new Airbnb or VRBO property without a prior rental history on that specific property.

What types of properties qualify for DSCR loans?

DSCR loans are available for single-family rentals, 2- to 4-unit properties, condominiums, and in many cases short-term rentals. Some programs also cover 5+ unit multifamily. Property eligibility varies by lender — not all lenders cover all property types.

Can I get a DSCR loan in Washington State?

Yes. Endeavance Capital brokers DSCR loans throughout Washington State including Yakima, Tri-Cities, Spokane, and Eastern Washington markets. We are licensed in 35+ additional states nationwide.

How is a DSCR loan different from a conventional investment property loan?

The primary difference is qualification. Conventional loans require 2 years of personal tax returns, full income verification, and a personal DTI calculation. DSCR loans require none of that — they qualify on property income alone. Conventional loans also cap borrowers at 10 financed properties under Fannie Mae guidelines. DSCR loans have no such limit, making them ideal for investors scaling portfolios.

Ready to Talk Through Your Rental Deal?

Whether you're buying a new rental, doing a cash-out refi, or executing the BRRRR refinance, I can walk you through how the DSCR numbers need to work before you go under contract.

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