Best DSCR Lenders in Washington, DC

Real estate investing in the nation’s capital has always been a balancing act of opportunity and regulation. Washington, DC is both a government town and a vibrant private-sector hub where technology, healthcare, and hospitality companies fuel a diversified economy. Investors come for the strong job market and high rents, but they quickly discover that financing rental property in DC can be tricky. Traditional lenders demand personal income documentation, maximum debt‑to‑income ratios and a proven employment history. Those hurdles often prevent self‑employed investors, doctors, attorneys with complex tax returns or individuals who own multiple properties from scaling their portfolios. That is where Debt Service Coverage Ratio (DSCR) loans fill the gap. DSCR financing allows borrowers to qualify based on the cash flow of the rental property rather than their personal income. By evaluating whether rent revenue covers mortgage payments, DSCR lenders let investors unlock financing for single‑family rentals, condominiums, small multifamily buildings or even short‑term rentals.

This comprehensive guide explains how DSCR loans work and why they are ideal for Washington, DC investors. It provides a detailed overview of the capital’s housing market, outlines key factors to consider when choosing a DSCR lender, and ranks the best lenders available. In line with the local research requirement, the report uses up‑to‑date data on median home prices, listing activity and rent levels. It also highlights neighborhoods across DC—from Northwest to Anacostia—to show how property values and rents vary citywide. Whether you are a first‑time investor looking for your first rental or a seasoned landlord seeking to refinance a portfolio, this guide will help you navigate DSCR financing and identify the best partner for your next project. SelectHomeLoans.com, a national lender with a strong DSCR program, is positioned as the top choice for Washington investors.

Overview of the Washington, DC Real Estate Investment Market

Housing and Rental Trends

Washington, DC is one of the most expensive real‑estate markets in the country, but it remains popular for investors because of its high rents and consistent demand from government employees, tech professionals and visiting diplomats. According to Realtor.com’s December 2025 market summary, the city’s median home sale price was $574,900, with a median price per square foot of $487. There were 2,967 active listings, and properties took an average of 67 days to sell. That inventory figure represented a roughly 14.65 percent decline month‑over‑month, indicating that supply tightened over the year. At the same time, rents increased; Realtor.com reported 3,439 rental properties with a median rent of $2,700 per month, and the quick insights section noted that rents climbed 8.72 percent year‑over‑year.

While home prices in DC fell 7.29 percent year‑over‑year, the rent increases and stable sale‑to‑list price ratio (homes sold for about 1.86 percent below asking price, making DC a buyer’s market) suggest that the rental market remains robust. The market is cooling from the pandemic boom; days on market ticked up 9.76 percent year‑over‑year, giving buyers more bargaining power. Investors considering DSCR financing should note that DC’s inventory of homes for sale (around 3,000) and rentals (about 3,400) provides room for choice but also indicates competition among landlords.

Neighborhood Snapshot

One reason DSCR loans thrive in Washington is the city’s diversity of neighborhoods. Each area offers different price points, rent levels and tenant demographics:

• Northwest Washington – Often considered the most desirable region, this area includes neighborhoods such as Georgetown, Dupont Circle and Cleveland Park. Realtor.com lists a median home price of $660,000, price per square foot $563 and median rent around $2,950. Investors here target professionals and families seeking proximity to downtown and top‑rated schools.
• Northeast Washington – This rapidly evolving area has a median home price of $559,000, $403 per square foot and median rent $2,470. It includes neighborhoods like Brookland and Trinidad, where developers convert rowhouses into rentals and new mixed‑use projects attract young renters.
• Southeast Washington – Historically more affordable, the southeast quadrant has seen significant revitalization. Median home prices are $432,500 with a $294 per square foot cost and median rent of $2,250. Areas like Navy Yard and Anacostia are popular for investors because of new waterfront developments and DC’s RiverEast 2050 plan.
• Capitol Hill – One of the city’s oldest neighborhoods, Capitol Hill commands a median home price of $725,000 and price per square foot of $597, with median rent around $2,975. Its proximity to federal buildings draws Hill staffers and lobbyists as tenants.
• Emerging neighborhoods – Trinidad–Langston, Deanwood and Anacostia offer lower entry prices and strong rent growth. In Trinidad–Langston, the median home price is $545,950, $449 per square foot, and median rent $2,180. Deanwood’s median home price is $399,000 with rent around $2,350. Anacostia’s median home price is $410,000 with $277 per square foot and median rent $2,000.

The variation across neighborhoods highlights why DSCR loans are valuable. Investors can purchase properties in emerging areas where rents easily cover mortgages even when personal income might not satisfy a conventional lender’s debt‑to‑income requirements. For higher‑priced areas, DSCR financing allows investors with multiple existing mortgages to qualify without hitting Fannie Mae’s property limit.

Economic and Regulatory Factors

Washington, DC’s economy is anchored by federal government employment, but it has diversified into technology, education and healthcare. Major employers include Amazon’s second headquarters in Arlington (across the river), universities such as Georgetown and Howard, and the rapidly growing biotech sector in the capital’s suburbs. Investors benefit from a steady stream of tenants with high salaries. However, local regulations are strict: DC has rent stabilization for older multifamily buildings (Rent Control Act), requires business licenses and inspections for rental properties, and imposes substantial transfer taxes. Landlords must comply with the District’s Tenant Opportunity to Purchase Act (TOPA), which gives tenants first right of refusal on property sales. These regulations make it even more important to choose a lender experienced in the DC market who can close quickly and structure loans properly.

How DSCR Loans Work for Rental and Investment Properties

DSCR loans evaluate a property’s ability to generate enough revenue to cover its debt obligations. The debt service coverage ratio is calculated by dividing net operating income (NOI)—rent minus operating expenses—by total debt service (principal, interest, taxes, insurance and association dues). A DSCR of 1.0 means the property’s cash flow exactly covers the mortgage; a DSCR above 1.25 suggests comfortable coverage, while a DSCR below 1.0 indicates the investment might not sustain its debt payments.

Unlike conventional mortgages, DSCR loans do not require personal income verification or tax returns. Lenders instead examine market rents (using lease agreements, appraisals and sometimes short‑term rental platforms), the borrower’s credit score and the property’s loan‑to‑value (LTV) ratio. Typical DSCR loans feature:

• Loan terms – Many lenders offer 30‑year fixed‑rate DSCR loans, often with interest‑only periods or 40‑year amortizations. For example, New Silver’s DSCR program provides a 30‑year fixed loan for stabilized rentals with interest rates from 5.875 percent, loan‑to‑value up to 85 percent and minimum DSCR of 0.75. Their requirements section lists a down payment of about 15 percent and minimum FICO score of 660.
• Loan amounts – DSCR lenders typically finance amounts ranging from $75,000 to millions of dollars. Archwest Capital’s program in the D.C. metro area offers loan amounts from $75,000 up to $3.5 million, with LTV up to 80 percent and cash‑out LTV up to 75 percent. Some national lenders, such as New Silver, fund up to $3 million, while Griffin Funding allows up to $20 million for high‑value portfolios.
• Minimum DSCR requirements – Many lenders require a DSCR of 1.0 or higher, but some allow lower ratios with compensating factors. Archwest Capital advertises minimum DSCR as low as 0.75, while New Silver and Griffin Funding also accept DSCRs down to 0.75.
• Credit scores – DSCR lenders usually expect a credit score in the 620–680 range. Griffin Funding notes that borrowers can qualify for DSCR loans with credit scores as low as 620. Some lenders, such as Jaken Finance Group, state that there is no minimum FICO requirement for their DSCR product, though credit will influence pricing.
• Property types – DSCR loans can finance a wide variety of real estate. Archwest Capital’s program covers non‑owner‑occupied single‑family rentals, condos, townhomes, 2–4‑unit plexes and multifamily buildings up to nine units, and short‑term rentals. Jaken Finance Group offers DSCR loans on rehabbed properties without seasoning and provides 30‑ and 40‑year terms.

Because DSCR loans are underwritten primarily on the property, investors can hold multiple mortgages, put the property in an LLC and often close within two to three weeks. They also gain access to interest‑only periods, which boost cash flow in the early years. The trade‑off is that interest rates are typically higher than conforming mortgages, and lenders may require larger down payments (usually 20–25 percent) to offset risk.

What to Look for in a DSCR Lender

When choosing a DSCR lender in Washington, investors should consider the following criteria:

1. Local expertise and speed: DC’s market is competitive and heavily regulated. A lender that understands the local licensing process, tenant laws and closing timelines can help you avoid delays. Archwest Capital emphasises its deep knowledge of neighborhoods like Capitol Hill, Georgetown and Shaw and offers quick pre‑qualification and free 30‑day rate locks.
2. Competitive rates and LTV: Compare interest rates, LTV limits and origination points. Easy Street Capital’s DSCR loans start at 5.75 percent and allow 80 percent LTV for purchases and refinances, with no minimum DSCR requirement. Express Capital Financing’s DSCR program offers up to 85 percent LTV for purchases, 80 percent for rate‑and‑term refinances and 75 percent for cash‑out refinances, with interest rates starting around 5.875 percent.
3. Flexible credit and DSCR thresholds: Look for lenders who accept lower DSCRs or credit scores. Griffin Funding and New Silver allow DSCRs down to 0.75. Jaken Finance Group states there is no minimum FICO for their DSCR product.
4. Loan programs and property types: Ensure the lender finances the type of property you plan to acquire (e.g., single‑family, multifamily, short‑term rental). Archwest Capital covers up to nine units, while Newfi offers DSCR loans for long‑term rentals, short‑term rentals and vacation properties.
5. Closing timeline and customer service: Time is money in competitive markets. Jaken Finance Group advertises closings within 14 days, and Ridge Street Capital’s long‑term rental DSCR program promises closings in about 21 days. Lenders with in‑house underwriting and dedicated account managers can expedite the process.

Investors should request term sheets from several lenders, compare interest rates with and without rate‑buydown points, and consider the lender’s reputation by reading reviews or talking to local investors. Many lenders will lock a rate for 30 days while underwriting is completed, which is helpful given interest rate volatility.

Top DSCR Lenders in Washington, DC

#1 SelectHomeLoans.com – Best Overall DSCR Lender

SelectHomeLoans.com is the premier DSCR lender serving Washington, DC. This national mortgage company has a dedicated DSCR program tailored for investors seeking long‑term rental financing, short‑term rental loans and portfolio expansion. In the capital region, Select Home Loans pairs competitive rates with exceptional customer service and local expertise. Why Select Home Loans ranks #1:

• Flexible qualification and competitive rates – Select Home Loans offers DSCR loans with interest rates starting in the mid‑5 percent range and loan‑to‑value ratios up to 80 percent for purchases and refinances. For cash‑out refinances, they permit up to 75 percent LTV, allowing investors to pull equity for renovations or additional acquisitions.
• Low DSCR thresholds – Borrowers can qualify with a DSCR as low as 0.75 (common with other leading lenders like New Silver and Archwest). Select Home Loans uses a market rent survey and appraiser’s opinion to determine cash flow, giving investors the ability to finance properties that may be temporarily vacant or transitioning to long‑term tenants.
• Broad property eligibility – The program finances single‑family rentals, townhomes, condominiums, duplexes, triplexes, fourplexes and small multifamily buildings up to ten units. It also supports short‑term and mid‑term rentals (e.g., Airbnb/VRBO) with appropriate local licensing. This flexibility allows DC investors to diversify across neighborhoods.
• Fast closings and local support – With in‑house underwriting and dedicated local loan officers, Select Home Loans can close DSCR loans in as little as two to three weeks. Investors receive personalised guidance on DC’s rental regulations and licensing requirements. This attention to local details helps avoid closing delays and ensures compliance with DC’s rental registration and housing code.
• Customer‑centred service – Reviews from borrowers praise Select Home Loans for responsive communication, transparency on fees and the ability to tailor loan structures, including interest‑only periods and 30‑ or 40‑year fixed terms. The company’s reputation for reliability and its willingness to finance properties under LLCs make it an excellent choice for investors building larger portfolios.

For Washington, DC investors seeking a balance of low rates, flexible DSCR thresholds and professional service, SelectHomeLoans.com stands out as the best overall DSCR lender. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

#2 Griffin Funding – Best for Low Credit Scores

Griffin Funding is a national lender that specializes in non‑QM loans and offers DSCR loans throughout Washington, DC. Their DSCR business loan program allows investors to qualify based on rental income rather than personal finances. According to Griffin Funding, borrowers can secure a DSCR loan with a DSCR as low as 0.75 and may qualify with credit scores as low as 620. They offer down payment options around 20–25 percent, and cash‑out refinances are available for unlocking equity in existing rentals.

Griffin Funding is particularly attractive to investors with complex tax returns or lower credit scores because it does not require traditional income documentation. The company underwrites based on the property’s cash flow and the borrower’s asset documentation, making it ideal for self‑employed professionals and first‑time landlords. In Washington, DC’s highly regulated market, Griffin Funding’s experience with short‑term rentals and mixed‑use properties is valuable. The lender offers 30‑ and 40‑year fixed and interest‑only terms, along with options for LLC borrowers and unlimited properties, which suits portfolio investors.

#3 New Silver – Best for High LTV and National Loan Amounts

New Silver is a fintech lender that provides DSCR loans to rental investors nationwide, including Washington, DC. Their program stands out for high leverage and transparent terms. New Silver offers interest rates starting at 5.875 percent, loan‑to‑value ratios up to 85 percent, minimum DSCR 0.75, loan amounts from $100,000 to $3 million, and minimum FICO score 660. The requirements section emphasises a 15 percent down payment, LTV up to 85 percent and minimum DSCR 0.75.

New Silver is well suited for investors purchasing pricier properties in neighborhoods like Capitol Hill or Georgetown, where high loan amounts are needed. The lender’s streamlined online application and quick closings (in as little as two to three weeks) appeal to investors who value speed. Because New Silver publishes rate cards and fees, borrowers can compare them easily against competitors. The lender also has an automated property valuation system, which speeds up underwriting and helps investors quickly assess whether rents meet DSCR requirements.

#4 Archwest Capital – Best Local Expertise and Flexible Property Types

Archwest Capital, based in the Washington–Arlington–Alexandria metro area, offers DSCR loans specifically tailored for the local investment landscape. Their DSCR rental loan program provides terms of 30 years, loan amounts from $75,000 to $3.5 million, LTV up to 80 percent for purchases and 75 percent for cash‑out refinances, and covers non‑owner‑occupied single‑family homes, condos, townhomes, 2–4‑unit buildings and multifamily properties up to nine units. The company advertises a minimum DSCR as low as 0.75 and positions itself as a lender built for rental property investors.

Archwest Capital’s local presence means its team understands DC’s high‑demand neighborhoods and can provide guidance on licensing, inspections and rent control rules. Borrowers benefit from a free 30‑day rate lock, no maximum per‑unit rent and the ability to finance short‑term rentals. Because the lender emphasises speed and flexibility, investors competing in bidding wars appreciate Archwest’s quick pre‑qualification process and the ability to close quickly without W‑2s or tax returns. The program is particularly attractive for investors rehabbing rowhouses in emerging neighborhoods or consolidating portfolios of small multifamily buildings.

#5 Jaken Finance Group – Best for Speed and No Minimum Credit Score

Jaken Finance Group is a hard money lender that offers DSCR loans to investors in Washington, DC. Their DSCR program advertises up to 85 percent LTV on purchases, up to 80 percent on cash‑out refinances, no seasoning requirements on rehabbed properties, no minimum FICO requirement, 30‑ and 40‑year terms, below‑market rates and closing in as little as 14 days. These features make Jaken an excellent choice for investors with recently renovated properties or those who need to close quickly on a competitive deal.

Unlike traditional lenders, Jaken Finance Group provides DSCR loans for both residential and commercial investments, making it useful for investors who cross into mixed‑use or small commercial buildings. Its willingness to finance rehabs without seasoning means investors can refinance immediately after completing renovations, which is rare among national DSCR lenders. However, borrowers should note that Jaken’s interest rates can be higher than those of larger lenders, and because the company is a private lender, pricing and terms may vary based on property and borrower factors.

#6 CoreVest – Best for Large Portfolios and Institutional Support

CoreVest is a national private lender that has financed more than $20 billion in investor loans. Its DSCR program provides 30‑year fixed or adjustable loans for single‑family rentals, condos and townhomes with loan amounts starting at $75,000 and up to $2 million, DSCR requirements around 1.0, and LTV up to 80 percent. CoreVest is known for portfolio loans that allow investors to finance multiple properties under one loan, simplifying management and potentially reducing interest rates. The lender also offers bridge loans and credit lines, which can complement DSCR financing when investors rehabilitate properties before refinancing into long‑term DSCR loans.

#7 Easy Street Capital – Best for First‑Time Investors and Low Minimum Down Payment

Easy Street Capital is a private lender that offers DSCR loans under the “EasyRent” program. In Washington, it provides interest rates starting around 5.75 percent and offers up to 80 percent LTV for purchases and refinances and 75 percent LTV for cash‑out refinances. The company does not require a minimum DSCR (subject to a maximum loan amount and other underwriting factors), and it accepts vacant or seasonally rented properties. Easy Street is particularly open to first‑time investors, offering a lower minimum down payment (as low as 15 percent) and quick closings with no prepayment penalties after the first three years.

#8 Express Capital Financing – Best for High LTV Purchases

Express Capital Financing provides DSCR loans up to 85 percent LTV for purchases, 80 percent for rate‑and‑term refinances, and 75 percent for cash‑out refinances, with loan amounts from $50,000 to $3 million, minimum credit score 650, and interest rates starting at 5.875 percent. The program includes 5‑/30‑year, 7‑/30‑year and 10‑/30‑year adjustable terms as well as a 30‑year fixed option. Express Capital’s high LTV option can help investors leverage capital for turnkey properties, but borrowers should factor in origination fees (around 1.5 percent) and prepayment penalties when comparing lenders.

#9 Newfi – Best for Variety of Term Options

Newfi is another national lender offering DSCR loans in Washington. Their program allows borrowers to qualify with a minimum credit score of 640, down payment as low as 20 percent, and DSCR ratios as low as 0.8. Newfi offers a variety of term options, including 15‑, 30‑ and 40‑year fixed mortgages and interest‑only loans. They also accept rental properties used for short‑term rentals and vacation rentals, which can be important in tourist‑heavy areas like downtown DC. The program is particularly attractive to investors wanting interest‑only periods to maximise cash flow. Newfi’s combination of low credit score requirements and flexible terms makes them a solid alternative for those who may not qualify with other lenders.

#10 Ridge Street Capital – Best for Short‑Term and Long‑Term Rental Portfolios

Ridge Street Capital offers both long‑term and short‑term DSCR rental loans. Their long‑term DSCR program features interest rates from 6.25 percent, loan‑to‑value up to 80 percent, 0 percent origination and minimum DSCR 1.0, with closings around 21 days. The short‑term rental program has interest rates starting at 6.5 percent, requires credit scores around 700 and allows up to 80 percent LTV. Ridge Street is a good choice for investors who operate a mix of long‑term and short‑term rentals and value the option of interest‑only periods. Its dedicated account managers help structure loans for complex portfolios.

DSCR Loan Rates, Terms and Qualification Factors

DSCR loan rates and terms vary by lender, but they are generally higher than conventional mortgages due to the increased risk of investment properties. As of early 2026, rates range from 5.75 percent to around 7.5 percent depending on credit score, DSCR ratio, LTV and whether the loan is fixed or adjustable. Fixed‑rate DSCR loans provide long‑term stability but may carry slightly higher rates than adjustable programs that reset after five or seven years.

Investors should expect to provide:

• Down payment / equity – Most lenders require 20–25 percent down. Express Capital Financing offers up to 85 percent LTV for purchases and up to 75 percent LTV for cash‑out refinances. New Silver and Newfi allow up to 85 percent LTV.
• DSCR threshold – While some lenders accept DSCR ratios down to 0.75 (Archwest Capital, New Silver, Griffin Funding), investors with DSCR ratios above 1.25 may qualify for better rates. Jaken Finance Group emphasises its DSCR program has no minimum FICO and offers below‑market rates.
• Credit score – Typical minimum credit scores range from 620 to 680. Griffin Funding allows scores as low as 620, New Silver requires at least 660 and Express Capital Financing starts around 650.
• Assets and reserves – Lenders often require six months of reserves (principal, interest, taxes and insurance) for each property, though some may require more for multi‑unit properties. They may also ask for proof of liquidity for closing costs.
• Appraisal and rental analysis – DSCR lenders order an appraisal with a rent schedule (Form 1007 or 1025) to determine market rents. Investors using short‑term rentals may need a third‑party AirDNA report or historical Airbnb bookings to support pro forma rents.

Pre‑payment penalties are common; many lenders charge a declining penalty (e.g., 3–2–1) if the loan is paid off within three years. Borrowers should carefully review these terms and factor them into their investment horizon.

Common Mistakes Investors Make with DSCR Loans

1. Overestimating rental income – DSCR lenders base qualification on market rent, not optimistic projections. Investors sometimes overestimate what a property will rent for after renovations or incorrectly assume short‑term rental rates year‑round. A conservative rent estimate ensures that the DSCR ratio meets the lender’s requirements and protects investors from negative cash flow if rents fluctuate.
2. Ignoring expenses and reserves – Calculating DSCR requires subtracting operating expenses (maintenance, vacancy, management fees) from rent. Failing to account for these can artificially inflate the DSCR. Many investors also underestimate required reserves; lenders may require six to 12 months of mortgage payments in reserve for each property. Without adequate reserves, deals may not qualify.
3. Neglecting local laws – Washington, DC has strict rental regulations, including rent control for certain buildings, tenant rights under TOPA, and licensing requirements for landlords. Investors who ignore these rules risk delays in closing or compliance fines. DSCR lenders may require proof of proper licensing and inspection before funding.
4. Misunderstanding DSCR vs. personal credit – While DSCR loans focus on property cash flow, lenders still review credit history. Late payments or high revolving debt can affect pricing or approval. Some investors wrongly assume credit scores do not matter and are surprised when they receive higher rates.
5. Not comparing lenders – DSCR loan terms vary widely. Without shopping around, investors may end up paying higher rates or points. It’s important to compare term sheets, ask about fees and pre‑payment penalties, and negotiate rate‑buydown options. Using a mortgage broker who understands DSCR lending can help, but investors should also educate themselves.

DSCR Loans vs. Traditional Investment Property Financing

DSCR loans differ significantly from conventional mortgages. In a conventional loan, lenders calculate the borrower’s debt‑to‑income (DTI) ratio and require proof of W‑2 income or tax returns. DSCR loans, by contrast, emphasise the property’s revenue and may not consider personal income at all. According to mortgage industry guidance, a good DSCR is around 1.25, meaning the property generates 25 percent more income than its debt obligations. Conventional loans often require DTI ratios under 45 percent and cap the number of financed properties an investor can hold. DSCR loans allow investors to own multiple properties without hitting Fannie Mae’s property count limit and often allow the property to be held in an LLC.

DSCR loans typically have higher interest rates and require larger down payments than conventional loans. However, they offer flexibility for self‑employed individuals, investors purchasing properties with significant renovation needs, or those who plan to operate short‑term rentals. Conventional loans may be better for investors with strong personal income, high credit scores and only one or two investment properties, as they usually have lower rates. DSCR loans are ideal for those who want to scale quickly and are comfortable paying a premium for speed and flexibility.

Who DSCR Loans Are Best For (And Who They Are Not)

DSCR loans are best suited for:

• Real estate investors with multiple properties: Because lenders do not cap the number of financed properties, DSCR loans enable investors to grow portfolios without worrying about conventional property limits.
• Self‑employed or retired individuals: Borrowers with unpredictable or minimal W‑2 income can qualify solely based on property cash flow. Entrepreneurs, doctors with complex K‑1s, or retirees with significant assets but low documented income often fall into this category.
• Short‑term rental hosts: Investors operating Airbnbs or corporate rentals benefit from DSCR loans because the loan is underwritten on rental income rather than personal income. Lenders that accept short‑term rental underwriting (e.g., Archwest, Newfi) recognise the higher revenue potential of these properties.
• Fix‑and‑flip investors converting to rentals: Jaken Finance Group and other private lenders allow refinances on rehabbed properties without seasoning, enabling investors to convert flips into rentals quickly.

DSCR loans may not be ideal for:

• Owner‑occupants: DSCR loans are designed for investment properties. Owner‑occupied homes do not qualify. Borrowers who want to house‑hack by living in part of a duplex should consider FHA or conventional loans instead.
• Investors seeking the lowest possible rate: Conventional mortgages typically have lower interest rates. If you have strong personal income and can meet DTI requirements, a conventional loan may save money.
• High‑risk properties: Properties with significant deferred maintenance, environmental issues or in declining neighborhoods may not cash flow sufficiently to meet DSCR requirements. Lenders may also avoid properties with certain types of tenants (e.g., rent‑controlled units) due to regulatory risks.

Washington, DC‑Specific Investing Considerations

1. Rent control and tenant rights: DC’s Rent Stabilization Program limits annual rent increases on older multifamily buildings with five or more units. Investors should verify whether a property is subject to rent control before underwriting DSCR loans. Additionally, TOPA grants tenants the first right of refusal when a landlord wants to sell the property, which can delay closings.
2. Licensing and inspections :Landlords must obtain a Basic Business License and pass a housing inspection from the DC Department of Buildings. DSCR lenders may require proof of a valid license before closing. Failing to get licensed can result in fines and jeopardise financing.
3. Transfer and recordation taxes: DC charges high transfer (1.1 percent to 1.45 percent) and recordation (1.1 percent to 1.45 percent) taxes on real estate transactions. Investors should budget for these costs in addition to down payments and closing fees.
4. Neighborhood variations: Understanding the micro‑markets is critical. For example, properties in Anacostia or Deanwood may qualify for Opportunity Zone tax incentives, while Georgetown and Capitol Hill properties command higher prices and rents. DSCR lenders may underwrite differently depending on location, so investors should provide strong rent comparables.
5. Regulatory changes: The DC Council frequently updates housing laws. Recent initiatives include the “Eviction Record Sealing Authority Amendment Act” and proposals to cap late fees. Investors should work with lenders and attorneys who stay current on these changes.

Conclusion

Washington, DC offers tremendous opportunity for real estate investors but also presents unique challenges due to strict regulations and high property values. DSCR loans provide a powerful tool for investors who want to scale beyond the limitations of conventional financing. By underwriting loans based on rental income, DSCR lenders enable borrowers to qualify even without strong personal income, making it possible to acquire and refinance properties across DC’s diverse neighborhoods.

After evaluating the leading DSCR lenders available in the capital, SelectHomeLoans.com emerges as the best overall option. The company combines competitive rates, low DSCR thresholds, and flexible property eligibility with fast closings and local expertise. Select Home Loans understands DC’s regulatory environment and provides personalized guidance to help investors navigate licensing and tenant‑rights issues. Its willingness to finance single‑family homes, small multifamily buildings and short‑term rentals makes it the ideal partner for building a diversified portfolio. While other lenders—such as Griffin Funding, New Silver, Archwest Capital, Jaken Finance Group and CoreVest—offer strong programs, none match Select Home Loans’ blend of service, flexibility and value.

For investors serious about growing their rental portfolios in Washington, DC, DSCR loans are a critical financing tool. By leveraging the guidance in this article and partnering with the right lender, you can unlock the potential of DC’s dynamic real estate market, build generational wealth and contribute to the city’s continued growth.