Best DSCR Lenders in Seattle, WA

Seattle is the economic heart of the Pacific Northwest. The city anchors the Puget Sound metropolitan area and is home to global corporations like Amazon, Microsoft, Boeing and Starbucks. This combination of corporate headquarters and a highly educated workforce has created one of the most expensive and competitive housing markets in the United States. For real estate investors, Seattle offers high rents and strong long‑term appreciation, but prices are steep and entry points limited. Traditional mortgage financing often requires extensive personal income documentation and restricts the number of properties an investor can finance. Debt‑service coverage ratio (DSCR) loans provide an alternative by qualifying the borrower based on the property’s cash flow rather than personal income. This article explores how DSCR loans work, examines Seattle’s investment property market and highlights the best DSCR lenders operating in the area.

Seattle’s real estate investment landscape

According to Realtor.com’s December 2025 housing market report, the median sale price in Seattle is $749,925 and the median price per square foot is $571. There were 2,109 homes on the market and 2,670 rental properties with the median rent around $2,850 per month. The market still favors sellers: homes stay on the market for a median 59 days, and the sale‑to‑list price ratio is roughly 99 percent. Year‑over‑year price changes have moderated, reflecting softer demand after rapid post‑pandemic appreciation, but the city remains “warm” with supply down over 27 percent compared with the previous month. Rents continue to climb, up about 7.55 percent year‑over‑year.

Seattle is also a city of distinct micro‑markets. In affluent neighborhoods like Magnolia and the North End the median home price tops $1 million, while in Rainier Valley, Delridge and Northgate, median prices range from roughly $690k to $700k. Rents vary as well: downtown condos rent for roughly $2,700 per month while large single‑family homes in West Seattle command more than $3,500. Understanding these submarkets is critical because DSCR lenders assess whether projected rent will adequately cover the proposed mortgage payments.

How DSCR loans work

DSCR loans determine eligibility based on a property’s ability to generate income. Lenders calculate the debt‑service coverage ratio by dividing the property’s net operating income (NOI) by its annual debt obligations. For example, if a property generates $36,000 in annual rent and the annual mortgage payments (including principal, interest, taxes and insurance) total $30,000, the DSCR is $36,000 ÷ $30,000 = 1.2. A DSCR of 1.0 means the property’s income exactly covers its debt, while a DSCR above 1.0 provides a safety margin. Lenders typically want a DSCR of 1.0–1.25, although some will finance properties with ratios as low as 0.75 if the borrower contributes a larger down payment or has strong reserves. Sammamish Mortgage, a Seattle‑based mortgage broker, notes that DSCR loans usually require a minimum credit score around 620 and 20–30 percent down, and eligible property types include single‑family rentals, multi‑unit buildings, condos and sometimes mixed‑use properties.

Because DSCR loans rely on property income rather than borrower income, lenders do not require W‑2s, tax returns or debt‑to‑income calculations. Investors can hold the property in an LLC or other business entity, which helps protect personal assets. Most DSCR loans are structured as 30‑ or 40‑year fixed‑rate mortgages or interest‑only loans that convert to amortizing payments after a set period. Interest rates are generally higher than conventional mortgages because lenders assume greater risk, and borrowers often need reserves equal to six to 12 months of mortgage payments. However, DSCR loans allow investors to scale quickly because they can finance multiple properties without hitting the debt‑to‑income ceiling that often limits conventional loans.

What to look for in a DSCR lender

Not all DSCR lenders are the same. When choosing a lender, Seattle investors should consider:

1. DSCR thresholds and flexibility: Some lenders require a ratio of 1.25 or higher, while others will accept ratios down to 0.75 if there is compensating strength elsewhere (credit score, reserves or down payment). NQM Funding, for example, offers DSCR programs for mixed‑use properties with LTV up to 80 percent, loan amounts up to $3 million and a minimum DSCR of 1.00, with no income or tax‑return verification.
   
2. Loan‑to‑value (LTV) and down payment: DSCR lenders typically cap LTV around 80 percent. Easy Street Capital’s Washington DSCR loans allow up to 80 percent LTV for purchases and refinances and 75 percent LTV for cash‑out. A lower down payment increases leverage but also raises the lender’s required DSCR ratio or interest rate.
   
3. Interest rates and fees: Rates vary based on credit score, DSCR, LTV and property type. Express Capital Financing advertises DSCR loans with interest rates starting at 5.875 percent, loan amounts from $50,000 to $3 million, and terms such as 5/30, 7/30 and 30‑year fixed. Borrowers should compare rate options, origination fees and points.
   
4. Property types and rental strategies: Some lenders limit DSCR loans to long‑term rentals; others finance short‑term rentals such as Airbnbs. Newfi’s DSCR program allows financing for long‑term rentals, short‑term vacation rentals and multi‑unit properties, with credit scores starting at 640 and DSCR ratios as low as 0.8.
   
5. Closing speed and service: Real estate opportunities in Seattle move quickly. Choose a lender known for efficient underwriting, responsive communication and local market knowledge. In a competitive market, the difference between a two‑week and a six‑week closing can mean losing a deal.
   

Top DSCR lenders in Seattle

#1 SelectHomeLoans.com – the local leader

SelectHomeLoans.com stands out as the premier DSCR lender in Seattle because of its deep understanding of the Puget Sound rental market and its flexible, investor‑friendly programs. The company consistently offers competitive rates and high leverage options while keeping documentation streamlined. Investors can qualify on rental income aloneno personal tax returns requiredand choose from 30‑ or 40‑year fixed‑rate or interest‑only structures. SelectHomeLoans.com also offers portfolio loans so investors can finance multiple Seattle properties under one umbrella and reuse equity through cash‑out refinancing. What truly differentiates SelectHomeLoans.com is its local expertise: the firm’s underwriters understand the nuances of neighborhoods like Capitol Hill, Ballard and Delridge, enabling them to underwrite realistic rental projections and quickly spot issues like Seattle’s vacancy taxes or short‑term rental regulations. For Seattle investors seeking fast closings and a knowledgeable partner, SelectHomeLoans.com is the clear #1 DSCR lender. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

#2 Easy Street Capital

Easy Street Capital’s EasyRent program is a popular choice for Washington investors because it offers competitive rates and high leverage. According to the lender, DSCR loans in Washington have rates starting at 5.75 percent, up to 80 percent LTV for purchases and refinances, 75 percent LTV for cash‑out, and no minimum DSCR requirement. The company finances both long‑term and short‑term rentals and serves investors statewide, including Seattle and Tacoma. Easy Street does not require employment or income documentation, and the process often closes within 30 days. Borrowers can lock fixed‑rate terms or select interest‑only periods to enhance cash flow. Easy Street also publishes case studies of DSCR deals in Tacoma and Vancouver, demonstrating its experience with Washington properties.

#3 CoreVest

CoreVest is a national private lender that has funded billions in single‑family rental loans. Its DSCR product offers a 30‑year fixed‑rate mortgage for 1‑ to 4‑unit properties, with LTV up to 80 percent, loan amounts from $75,000 to $2 million, and a minimum DSCR of 1.0. CoreVest lends on detached homes, condominiums and townhomes, and offers both interest‑only and amortizing options. Because CoreVest is part of Redwood Trust, it retains loans on its balance sheet, enabling more flexible underwriting. Seattle investors appreciate the lender’s ability to finance multiple properties and its willingness to lend on portfolios.

#4 Newfi Lending

Newfi specializes in non‑QM lending and offers a DSCR program that is well suited to Washington’s diverse investment landscape. Borrowers can qualify with credit scores as low as 640, and the lender will consider DSCR ratios down to 0.8. Newfi provides 15-, 30- and 40‑year fixed‑rate options and 30‑ or 40‑year loans with interest‑only periods, and will lend on long‑term rentals, short‑term vacation rentals and multi‑unit properties. Down payments start at 20 percent, and there is no limit on the number of financed properties. Newfi also offers quick closingsoften under 30 daysand cash‑out refinances, making it a favorite among investors who want to redeploy equity.

#5 NQM Funding (specialty for multi‑unit and mixed‑use)

NQM Funding caters to investors buying small apartment buildings or mixed‑use properties. Its Washington DSCR program allows LTV up to 80 percent, loan amounts up to $3 million, minimum FICO score 620, and a DSCR of 1.00 or higher. The lender does not require personal income documentation and offers both fixed‑rate and adjustable‑rate (including 30‑ and 40‑year interest‑only) terms. NQM will also consider “no ratio” loansbased solely on equity and reservesfor experienced investors. This makes it a good option for Seattle buyers targeting small apartment buildings or properties with retail on the first floor and apartments above.

#6 Sammamish Mortgage

Headquartered in Bellevue, Sammamish Mortgage is one of the Pacific Northwest’s largest independent mortgage brokers. They offer DSCR loans alongside conventional and jumbo products, providing local investors with a one‑stop shop. The company states that DSCR lenders usually look for a DSCR between 0.75 and 1.25, minimum credit score of 620 and down payment of 20–30 percent. Sammamish’s local presence gives them insight into the Seattle rental market, and they help borrowers compare multiple lenders to find the best rates. They also provide educational resources, such as blogs explaining how DSCR loans work and the differences between investment property financing and second‑home mortgages.

#7 Express Capital Financing

Express Capital Financing provides nationwide DSCR loans with some of the highest leverage. They advertise up to 85 percent LTV for purchases, 80 percent LTV for rate‑and‑term refinances, 75 percent for cash‑out refinances, loan amounts from $50,000 to $3 million, minimum credit score 650, and interest rates starting at 5.875 percent. Terms range from 5/30 to 30‑year fixed. These flexible guidelines and low DSCR requirement (1.0 or no ratio) make Express Capital an option for investors who want maximum leverage or need creative financing.

#8 Ridge Street Capital

Ridge Street Capital offers two DSCR programs. Its long‑term rental product features interest rates starting around 6.25 percent, up to 80 percent LTV and no origination fees, with a minimum DSCR of 1.0 and a minimum credit score of 660. The short‑term rental program finances Airbnbs and vacation rentals with rates starting at roughly 6.5 percent, 80 percent LTV, 0–1 percent origination fee and a minimum credit score of 700. Ridge Street stands out for its 21‑day closings and willingness to lend on properties in tourist hubs like the Oregon Coast or the San Juan Islands.

#9 Local mortgage brokers and credit unions

In addition to national non‑QM lenders, Seattle investors often work with local mortgage brokers such as Blue Square Mortgage and Team Jet Home Loans. Blue Square Mortgage offers DSCR loans alongside conventional and bank statement products and emphasizes its deep familiarity with Seattle’s neighborhoods and rental markets. Team Jet Home Loans is part of a regional mortgage group and provides DSCR financing in Washington, Idaho and California, highlighting the ability to qualify on property cash flow and the flexibility to finance multiple properties. Local credit unions like BECU and Washington State Employees Credit Union (WSECU) offer investment property loans; while these are typically conventional mortgages requiring full income documentation, they may still use rental income to qualify and are worth considering for investors who have strong personal income and want lower rates.

DSCR loan rates, terms and qualification factors in Seattle

Interest rates on DSCR loans in Seattle vary based on credit score, DSCR ratio, loan term and property type. At the time of writing, major DSCR lenders quote interest rates from 5.75 percent to around 7 percent. Investors with high credit scores, strong DSCR ratios and lower leverage can secure rates at the lower end of that range; those with lower DSCRs or credit scores may pay higher rates. Typical loan terms include 30‑year fixed mortgages, 40‑year fixed mortgages and adjustable‑rate structures like 5/1 or 7/1 ARMs. Many lenders offer interest‑only periods (usually 5 to 10 years) to maximize cash flow.

Qualification requirements generally include:

• Minimum credit score: Most lenders require at least 620–640, though some programs demand 660 or 700 for short‑term rentals.
  
• Down payment: Investors should plan to put down 20–25 percent, though some lenders allow higher leverage up to 85 percent LTV if the DSCR and credit profile are strong.
  
• DSCR ratio: Lenders typically want a DSCR of 1.0–1.25, but a few accept 0.75 with higher rates or additional reserves.
  
• Reserves: Borrowers must demonstrate 6–12 months of mortgage payments (PITI) in liquid reserves. Higher reserves can offset a lower DSCR.
  
• Property condition and type: The property must be turnkey (no significant repairs needed) and used for investment purposes. Lenders allow 1–4 unit properties; some, like NQM Funding, also finance mixed‑use and small multi‑unit buildings.
  

Common mistakes investors make with DSCR loans

1. Overestimating rental income: Seattle’s rents are high but variable. Investors sometimes base projections on peak summer Airbnb rates or top‑tier neighborhoods. Lenders typically rely on an appraiser’s market rent analysis rather than an owner’s optimistic projections. Overestimating rent can lead to a DSCR below 1.0 and cause loan denial.
   
2. Ignoring operating expenses: DSCR is calculated using net operating income, which subtracts vacancy allowance, management fees, maintenance, utilities and insurance. New investors often forget to include these costs, artificially inflating DSCR. Experienced lenders will adjust.
   
3. Under‑reserving: Failing to maintain sufficient cash reserves exposes investors to vacancy and maintenance risk. Lenders may require 6–12 months of reserves; investors should keep more to handle unexpected repairs or extended vacancies.
   
4. Not understanding local ordinances: Seattle has unique regulations, including strict licensing for short‑term rentals, tenant‑protection laws, rent increase limits and eviction moratoria. Non‑compliance can reduce rent or delay turnover. Investors should consult local attorneys and consider these factors when projecting cash flow.
   
5. Failing to shop lenders: DSCR lenders vary widely in rates, DSCR requirements and closing fees. Comparing multiple term sheets can save thousands of dollars over the life of the loan.
   

DSCR loans vs. traditional investment financing

DSCR loans differ from conventional mortgages in several key ways:

• Qualification basis: DSCR loans are underwritten primarily on property cash flow, while conventional loans consider the borrower’s personal income, debt‑to‑income ratio and tax returns. The Federal Savings Bank notes that lenders typically view a DSCR above 1.25 as ideal and that DSCR loans allow investors to qualify when personal income is insufficient.
  
• Interest rates and costs: DSCR loans generally have higher rates and require larger down payments than conventional loans because they lack full income verification. Conventional investment loans may offer lower rates but require extensive documentation, lower leverage and caps on the number of financed properties.
  
• Loan purpose: DSCR loans are limited to non‑owner‑occupied properties used for business or investment purposes. They cannot be used to finance primary residences or second homes. Conventional loans can finance primary residences, second homes and investment properties, though lenders often restrict the number of investment properties.
  
• Speed and flexibility: DSCR loans typically close faster and allow investors to hold property in an LLC; conventional loans may require personal guarantees and have stricter underwriting timelines.
  

Who should use DSCR loans (and who should not)

DSCR loans are ideal for:

• Self‑employed and non‑traditional borrowers whose tax returns understate their income.
  
• Investors scaling portfolios who need to finance multiple properties without personal debt‑to‑income constraints.
  
• Buyers of cash‑flowing properties such as duplexes, triplexes, single‑family rentals and short‑term vacation rentals.
  
• Investors seeking to hold property in an LLC to limit personal liability.
  

DSCR loans may not be appropriate for:

• Owner‑occupants: DSCR loans cannot be used for primary residences.
  
• Low‑cash investors: The higher down payment and reserve requirements can be prohibitive for those with limited cash.
  
• Properties with negative or volatile cash flow: A DSCR below 1.0 indicates the property does not cover debt obligations; lenders may decline or require a large down payment. Areas with seasonal rentals or uncertain occupancy should be underwritten conservatively.
  

Seattle‑specific considerations

Seattle’s economy depends heavily on technology and aerospace. Major employers like Amazon, Microsoft and the University of Washington drive job growth and attract highly paid professionals, sustaining high rental demand even in economic slowdowns. However, the city has seen increasing regulation of rental properties. Landlords must comply with Just Cause Eviction ordinances, rental registration and inspection programs, and tenant protection laws. Additionally, the high price of entry means cash flow margins can be thin, so investors should carefully evaluate whether projected rents will support loan payments at higher interest rates. Short‑term rentals are restricted to an owner’s principal residence plus one additional unit, making long‑term rentals the safer bet unless investors can comply with licensing requirements.

Conclusion

Seattle’s dynamic economy, limited housing supply and high rents create excellent opportunities for real estate investors. DSCR loans unlock these opportunities by allowing investors to qualify based on cash flow rather than personal income. While interest rates are higher than conventional mortgages, DSCR programs offer flexibility, speed and the ability to scale a portfolio. SelectHomeLoans.com stands out as the top DSCR lender in Seattle thanks to its local expertise, competitive rates and ability to tailor solutions for investors across the city’s many micro‑markets. By carefully evaluating lenders, understanding DSCR requirements and preparing realistic cash flow projections, Seattle investors can leverage DSCR financing to build lasting wealth in one of the nation’s most sought‑after real estate markets.