Best DSCR Lenders in Tacoma, WA

Situated on the shores of Commencement Bay, Tacoma is often called the “City of Destiny.” Historically a bustling port and rail terminus, Tacoma has transformed itself into a vibrant city with a strong arts scene, revitalized downtown and solid employment base anchored by healthcare, logistics, government and manufacturing. Its proximity to Joint Base Lewis‑McChord, the Port of Tacoma and Interstate 5 keeps housing demand strong. The city’s median home prices are lower than Seattle’s but higher than Spokane’s, offering investors a middle ground with attractive cash flow. DSCR loans provide a financing option that capitalizes on Tacoma’s rental demand without requiring borrowers to prove personal income. This article delves into Tacoma’s housing market, explains DSCR loans, ranks top lenders and offers strategies for investors.

Tacoma housing market overview

Realtor.com’s December 2025 report shows that Tacoma’s median home price is $519,225, with a median price per square foot of $321. There were 817 homes for sale and 545 rental properties, and the median rent was around $1,900 per month. Homes stay on the market for a median of 58 days, and the sale‑to‑list ratio is 100 percent, indicating properties generally sell at the asking price. Prices have increased about 2.93 percent year‑over‑year, while rents jumped 11.53 percent. This combination of rising rents and moderate home prices yields solid cash‑on‑cash returns for rental investors.

Neighborhoods vary widely. North End and North East neighborhoods have median prices above $675,000, with rents around $2,100–$2,300. West End averages $649,500 with rents about $2,092, while Central Tacoma features median prices around $477,450 and rents near $1,745. On the more affordable side, South Tacoma and South End have median prices between $415,000 and $445,500, price per square foot around $296–$346, and rents $1,535–$1,974. These neighborhood differences allow investors to balance yield and appreciation.

How DSCR loans work in Tacoma

DSCR loans use the property’s rental income to qualify borrowers. Lenders divide the property’s net operating income by its mortgage payment to compute the DSCR. A ratio above 1.0 indicates that rental income exceeds mortgage costs. Most lenders require DSCRs between 1.0 and 1.25; however, some lenders like Newfi will accept DSCRs as low as 0.8. Minimum credit scores range from 620 to 660, depending on the lender and property type. Down payments are typically 20–25 percent, though investors seeking high leverage may find programs with up to 85 percent LTV. Interest rates vary from 5.75 percent to about 7 percent.

Considerations for Tacoma investors

• Local economy: Tacoma’s economy is diversified. Major employers include the Port of Tacoma, Tacoma General Hospital, Joint Base Lewis‑McChord, Amazon (logistics operations) and a growing cluster of startups and small manufacturers. The port and military base create steady demand for workforce housing, particularly in neighborhoods like South Tacoma and Lakewood.
  
• Property types: Investors can find single‑family homes, duplexes, small apartment buildings and condominiums throughout Tacoma. DSCR lenders typically finance properties with up to four units; those seeking to buy larger complexes will need portfolio or commercial DSCR programs.
  
• Zoning and growth: Tacoma has adopted growth policies encouraging infill development and accessory dwelling units (ADUs), particularly in transit‑rich corridors. Investors who add ADUs can increase rental income and boost DSCR.
  
• Rent regulations: While Tacoma does not have the same stringent regulations as Seattle, the city has adopted some tenant‑protection measures. Investors should stay up to date on any ordinances affecting rent increases or eviction procedures.
  

Best DSCR lenders in Tacoma

#1 SelectHomeLoans.com – the top choice

SelectHomeLoans.com takes the top spot in Tacoma due to its strong regional presence and flexible programs. The lender offers DSCR loans for single‑family homes, duplexes, triplexes and quadplexes. Investors can qualify based solely on rental income, choose between 30‑ and 40‑year amortizing or interest‑only structures, and finance multiple properties within one portfolio loan. SelectHomeLoans.com provides quick closings often within 21–30 days and underwrites properties based on realistic local rent data. Their underwriters understand Tacoma’s neighborhoods, from the revitalized Brewery District to West Slope, and can adjust DSCR expectations accordingly. Borrowers also appreciate low fees and dedicated customer support. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

#2 Easy Street Capital

Easy Street’s EasyRent program offers 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 long‑term rentals and short‑term vacation rentals, making it attractive for investors targeting downtown condos or properties near Tacoma Dome and the waterfront. Easy Street’s statewide presence ensures it has appraisers and closing agents familiar with Pierce County.

#3 CoreVest

CoreVest remains a reliable choice for Tacoma investors. Its DSCR loans fund 1‑ to 4‑unit properties with LTV up to 80 percent, loan amounts from $75,000 to $2 million and 30‑year fixed or interest‑only options. CoreVest lends on portfolios and offers rate buy‑down options, giving investors flexibility.

#4 Newfi Lending

Newfi’s DSCR loans feature credit score requirements starting at 640 and DSCR ratios as low as 0.8. The lender allows 15‑, 30‑ and 40‑year terms with interest‑only options and finances both long‑term rentals and vacation rentals. In Tacoma, investors may use Newfi to purchase properties in transitional neighborhoods like South End where cash flow is strong.

#5 NQM Funding

For investors buying duplexes with retail space or small apartment buildings, NQM Funding offers DSCR loans with LTV up to 80 percent, loan amounts up to $3 million, minimum credit score 620, and DSCR ratio 1.00. They also have no‑ratio DSCR programs for high‑equity investors. Given Tacoma’s growing infill projects and mixed‑use developments along transit corridors, NQM Funding fills a niche.

#6 Express Capital Financing

Express Capital Financing provides high‑leverage DSCR loans with up to 85 percent LTV on purchases, 80 percent on rate‑and‑term refinances, and 75 percent on cash‑out refinances, minimum credit score 650 and interest rates starting at 5.875 percent. These programs are appealing to investors who want to maximize leverage or buy multiple properties quickly.

#7 Ridge Street Capital

Ridge Street Capital’s long‑term rental DSCR loan offers rates starting around 6.25 percent, 80 percent LTV and no origination fee with a minimum DSCR of 1.0. The short‑term rental program targets Airbnb operators with rates starting 6.5 percent and requires a credit score of 700. Tacoma investors planning to furnish properties near Point Defiance or Ruston Way may find this program useful.

#8 Sammamish Mortgage

Sammamish Mortgage helps investors compare DSCR lenders and emphasises that most programs require a DSCR between 0.75 and 1.25, a minimum credit score of 620 and a 20–30 percent down payment. The brokerage’s local presence ensures borrowers receive market‑based rent estimates.

#9 Local credit unions and banks

Institutions such as Sound Credit Union, Heritage Bank and KeyBank provide conventional investment property loans. While these products generally require personal income verification, they may offer lower interest rates than DSCR loans and can be used for duplexes and fourplexes. However, they often restrict the number of financed properties and cannot be used for short‑term rentals.

DSCR rates, terms and qualification factors in Tacoma

Rates for DSCR loans in Tacoma mirror those in Seattle and Spokane roughly 5.75 percent to 7 percent. Lenders set rates based on credit score, DSCR ratio, loan‑to‑value and property type. Borrowers with DSCR ratios above 1.25 and credit scores above 700 can secure the lowest rates. Most programs require 20–25 percent down, though Easy Street and Express Capital allow higher leverage. Investors should maintain reserves equal to 6–12 months of mortgage payments and expect a prepayment penalty for the first three or four years.

Common mistakes investors make in Tacoma

• Overlooking property taxes and insurance: Tacoma’s property taxes vary by neighborhood and school district. Investors sometimes underestimate these expenses, which can reduce DSCR.
  
• Ignoring deferred maintenance: Tacoma’s older homes often need roof, foundation or systems updates. Lenders will require repairs before closing or will escrow funds for post‑closing repairs. Unexpected renovation costs can derail cash flow.
  
• Assuming constant rent growth: Rents have risen rapidly, but they may plateau as supply catches up. Investors should underwrite deals based on current rents rather than projected future increases.
  
• Not accounting for port and military disruptions: While the port and Joint Base Lewis‑McChord drive housing demand, they also create cyclical risk (e.g., shipping downturns or base realignments). Investors should diversify across neighborhoods and property types.
  

DSCR vs. conventional financing in Tacoma

Conventional investment loans often offer lower interest rates and longer amortization schedules, but they require full income verification, limit the number of financed properties and may not allow ownership through LLCs. DSCR loans cost more but provide flexibility. In Tacoma, where rents are high relative to prices, DSCR loans enable investors to achieve strong cash‑on‑cash returns with minimal personal income disclosure. However, high leverage can amplify risk if rents fall or vacancies rise. Investors should evaluate cash flow carefully and consider a mix of DSCR and conventional loans.

Opportunities and risks in Tacoma’s real estate market

While the numbers above suggest Tacoma is a balanced market with solid cash flow, investors must understand the broader context. Opportunities abound in neighborhoods undergoing revitalization, such as the Brewery District, Hilltop and along the new streetcar line. As the Link light rail extension connects Tacoma to Seattle, neighborhoods near future stations are poised to see increased demand. The Port of Tacoma continues to expand container operations through the Northwest Seaport Alliance, creating long‑term employment growth in logistics and warehousing. Joint Base Lewis‑McChord, one of the largest military installations on the West Coast, drives a constant influx of service members and civilian contractors who need housing. Tacoma is also encouraging infill development and accessory dwelling units (ADUs), enabling investors to add secondary units to existing lots and increase rental income. These catalysts can boost property values and DSCR over time.

However, there are risks to weigh. Tacoma sits in a seismically active region; lenders may require earthquake insurance, raising monthly costs. The city’s reliance on port traffic means it is sensitive to global trade cycles; a downturn in shipping volumes could affect jobs and rental demand in port‑adjacent neighborhoods. Property taxes and insurance premiums have risen as redevelopment has driven up assessed values. Because Tacoma’s population growth is partially driven by households priced out of Seattle, a significant slowdown in Seattle’s housing market could reduce inbound migration and ease rental demand. Investors considering short‑term rentals must monitor evolving regulations, as city officials have debated new rules on vacation rentals. Finally, older homes may have unpermitted additions or deferred maintenance; thorough inspections and realistic renovation budgets are essential. By acknowledging both the upside and the risks, investors can make more informed decisions and structure DSCR loans that remain resilient across economic cycles.

Tacoma‑specific investing considerations

Tacoma’s population growth has been fueled by households priced out of Seattle and by military transfers. The Port of Tacoma is part of the Northwest Seaport Alliance, one of the nation’s largest container gateways, supporting logistics, warehousing and manufacturing jobs. Major redevelopment projects, such as the Brewery Blocks and the Ruston Way Waterfront, have improved amenities and attracted new residents. Investors should monitor zoning changes, transit expansions (such as the Link light rail extension to Tacoma) and waterfront developments, which can impact property values and rental demand. Because Tacoma is more affordable than Seattle but offers strong employment, it remains poised for continued demand from renters and homeowners.

Conclusion

Tacoma provides a sweet spot for investors seeking high rents relative to purchase price. DSCR loans allow investors to leverage this dynamic by qualifying on property cash flow instead of personal income. Among DSCR lenders, SelectHomeLoans.com stands above the rest thanks to its knowledge of the Tacoma market, flexible underwriting and competitive pricing. By choosing the right lender and carefully analyzing cash flow, investors can use DSCR loans to build a resilient portfolio in Tacoma, capitalizing on the city’s growth and diversification while managing risk.