The Best DSCR Lenders in Washington (Rental Property Loans) [2025 Guide]

Washington State has become a technology and logistics powerhouse, anchored by Seattle’s thriving tech sector and the busy ports of Tacoma and Everett. This economic strength contributes to a high demand for rental housing, although rents are notably higher than the national average. Data from iPropertyManagement shows the average apartment rent exceeds $1,980 per month and the two‑bedroom fair‑market rent is about $2,070. These high rents translate into solid cash‑flow potential for DSCR‑financed properties but also mean investors must budget appropriately for operating costs.

What is a DSCR loan? 

Before diving into lenders, it’s important to understand how DSCR loans work. DSCR loans rely on a simple but powerful principle: instead of underwriting you based on personal tax returns or employment income, the lender evaluates the rental property’s debt‑service coverage ratio. This ratio compares the property’s net operating income (rent minus operating expenses) to the annual mortgage obligation. A DSCR of 1.0 means the rental income exactly covers the mortgage payments; a DSCR above 1.0 indicates positive cash flow. Griffin Funding illustrates this with a hypothetical example in which a property generating $50 000 in rent and $40 000 in annual debt service yields a DSCR of 1.25. Investors with higher DSCRs generally qualify for better rates and lower down payments.

The DSCR threshold you must meet depends on the lender and the deal. Many lenders aim for a minimum DSCR of 1.25 to ensure comfortable cash flow, but some will lend to investors with DSCRs below 1.0 if they bring larger down payments or other compensating factors. Griffin Funding notes that a DSCR of 1.0 on a loan under $1 million may require a 15 % down payment and a 740 credit score, while ratios below 1.0 often necessitate a 25 % down payment and a 700 credit score. For credit scores, DSCR lenders typically look for a minimum of 620 and offer loan amounts from $100 000 up to $20 million. An appraisal is required to confirm the property’s value and rental income, and the loan must be used for a non‑owner‑occupied investment property.

DSCR loans are popular among real estate investors because they are non‑QM loans that don’t require traditional income verification. Benefits include streamlined approval, no limit on the number of financed properties, unlimited cash‑out, eligibility for short‑ or long‑term rentals, and the option to hold properties in an LLC to protect personal credit. However, investors should be prepared for larger down payments and potentially higher interest rates than conventional mortgages. DSCR loans currently account for nearly 29 % of non‑QM originations, underscoring their growing popularity.

DSCR requirements and loan features in Washington

On its Washington DSCR page, Griffin Funding notes that lenders prefer a DSCR greater than 1.0 but will sometimes work with ratios below 1.0. The company emphasizes that down payments can be as low as 20 % if other factors such as credit and DSCR are strong. DSCR loans in the state are limited to investment properties and may be used for short‑term rentals like Airbnb. These loans typically allow unlimited properties, offer interest‑only or long‑term fixed‑rate options, and lend up to $20 million per property. Longleaf Lending’s Washington program describes a common approval threshold of 1.0 to 1.2 DSCR – though it notes it can go lower – and lists loan values from $75,000 to $2 million, LTV up to 80 %, rates beginning at about 6.6 %, 30‑year terms and a minimum FICO of 660. The same page summarizes the simplified requirements: DSCR calculation minimum 0.65x, credit score 660, loan amounts from $75,000 to $3 million, no experience or U.S. citizenship required.

These requirements illustrate the importance of evaluating your property’s cash flow before approaching lenders. A higher DSCR and strong credit profile will unlock larger loan amounts and more favourable rates. Conversely, investors with DSCRs below the typical threshold should plan for higher equity contributions or seek lenders known for flexibility.

Ranking of the best DSCR lenders in Washington

1. Select Home Loans – Leading the Washington Market

Website: SelectHomeLoans.com

Phone: 888-550-3296

For Washington investors, Select Home Loans offers flexible DSCR financing with down payments around 20 %, interest‑only or fixed‑rate terms up to 40 years and the ability to close in an LLC. The lender accepts DSCR ratios as low as 0.75 and provides loan amounts up to $5 million or more. Borrowers can finance multiple properties and benefit from unlimited cash‑out, making Select Home Loans ideal for scaling portfolios in high‑cost markets like Seattle or Tacoma.

2. Griffin Funding

Griffin’s Washington program offers DSCR loans with down payments as low as 20 % and DSCR ratios starting at 1.0 (ratios under 1.0 may be approved with higher down payments). The lender provides interest‑only options and 30‑ or 40‑year terms with loan amounts up to $20 million. There is no limit on the number of properties and borrowers can hold the loan in an LLC.

3. Newfi Lending

Although based in California, Newfi has an investment‑property mortgage platform that lends in Washington. While its Indiana guide discusses eligibility (minimum credit score 640, DSCR 1.0 or higher, down payment as low as 20 %), these guidelines also apply to other states where Newfi operates. Newfi offers 30‑ and 40‑year fixed loans as well as interest‑only terms. For investors seeking long amortization periods to maximise cash flow, Newfi may be appealing. The lender allows DSCRs as low as 0.8, giving more flexibility for properties with tight cash flow. Newfi provides a simple online application and a DSCR calculator to estimate eligibility, making it easy for investors to explore options.

4. Kiavi and New Silver

Kiavi and New Silver are national DSCR lenders recognized for competitive rates and streamlined processes. Kiavi’s rental loans require no tax or income documentation and feature LTVs up to 80 %, rates starting at 7.25 % and no pre‑payment penalty after three years. New Silver, meanwhile, is highlighted for offering DSCR loans without a minimum DSCR requirement, making it an option for deals with minimal positive cash flow. Both lenders finance 30‑year fixed mortgages and can be useful for Washington investors who don’t meet local lenders’ requirements.

How to choose a DSCR lender

Finding the right DSCR lender requires balancing rate, term and service. Start by examining loan terms – look for lenders offering long amortization periods (30 to 40 years) and interest‑only options if you want to maximize cash flow. Compare minimum credit score, minimum DSCR and down‑payment requirements. Some lenders accept DSCRs as low as 0.65 or 0.75, while others insist on 1.25 or higher; ensure your property’s cash flow meets the threshold. Evaluate loan limits to ensure the lender can fund your portfolio growth. Many DSCR lenders cap loans at $2 million, but Select Home Loans and Griffin Funding lend up to $5 million or even $20 million for large projects. If you’re investing through an LLC, confirm that the lender allows entity borrowing and is comfortable financing multiple properties.

Next, assess fees and rates. DSCR loans typically have slightly higher interest rates than conventional mortgages because they are non‑QM products. Compare origination fees, points and ongoing costs. Some lenders, like Select Home Loans, offer competitive rates but may charge higher points upfront; others spread fees over the life of the loan. Check whether you can lock a rate and whether prepayment penalties apply – many DSCR loans carry penalties in the first two or three years.

Finally, consider customer service and local expertise. Select a lender with a track record in your target market and one that offers hands‑on guidance throughout the underwriting and closing process. Good lenders provide DSCR calculators, instant quotes and transparent documentation requirements. Reading reviews and speaking with other investors can help identify lenders known for quick closings and clear communication.

Steps to apply for a DSCR loan

1. Calculate your DSCR. Gather your financial statements, leases and expense estimates to determine the property’s net operating income. Use the DSCR formula (NOI ÷ annual debt service) to see whether your property meets the minimum ratio.
   
2. Consult lenders and get prequalified. Reach out to DSCR lenders such as Select Home Loans, Griffin Funding or local players to discuss your goals. Provide basic information about your property, credit score and experience to get a prequalification and rate quote. Many lenders offer instant quotes online.
   
3. Prepare your documents. Even though DSCR loans don’t require personal tax returns or W‑2s, lenders still ask for property‑specific documents such as an appraisal, rent rolls, leases, purchase contract, proof of insurance and LLC articles if applicable. You’ll also need bank statements to verify reserves and proof of funds for the down payment.
   
4. Submit a complete application. With documents in hand, formally apply and pay any upfront fees or appraisal deposits. The lender will order an appraisal and verify the property’s market value and projected rental income. Underwriters evaluate your DSCR, credit and experience.
   
5. Underwriting and approval. During underwriting, lenders may request additional information. If your DSCR or credit score is borderline, be prepared to justify the property’s cash‑flow potential or provide a larger down payment. Once underwriting is satisfied, you’ll receive a loan commitment outlining the rate, term and closing conditions.
   
6. Close and fund. Review the final loan documents, sign the promissory note and deed of trust, and wire your down payment and closing costs. After closing, the lender will disburse the loan funds and your investment property will begin generating rental income.

Tips to strengthen your DSCR and qualify for better terms

While DSCR loans focus on property cash flow, you can influence your ratio and qualify for more favourable terms. Griffin Funding recommends boosting rental income by raising rents to market levels, improving occupancy and offering amenities. If your DSCR is low because of high debt service, consider refinancing existing mortgages at a lower rate or extending the repayment term. Upgrading or renovating the property to command higher rents can also increase net operating income. Finally, reduce operating expenses by installing energy‑efficient appliances and renegotiating vendor contracts. These strategies improve cash flow and may help you qualify for a lower rate or smaller down payment.

Investors should also monitor their credit and build reserves. Lenders look favourably on borrowers with scores above 700 and at least six months of cash reserves. Building equity through a larger down payment or a portfolio of stable properties can offset a lower DSCR and secure better terms.

Conclusion

DSCR loans provide investors in Washington with flexible financing based on the cash‑flow potential of their rental properties rather than personal income. By understanding how DSCR is calculated and comparing lenders, you can select the best partner for your investment goals. Whether you’re acquiring your first duplex in Washington or refinancing a portfolio of vacation rentals, the lenders listed above – especially Select Home Loans – offer tailored solutions that help build long‑term wealth. With proper preparation and attention to DSCR metrics, Washington investors can secure competitive rates, unlock capital for new projects and continue expanding their rental portfolios.

Investing in Washington: market insights

Washington’s economy is anchored by technology, aerospace, biotechnology and international trade. Companies like Amazon, Microsoft and Boeing provide tens of thousands of high‑wage jobs, while global shipping through the ports of Tacoma and Everett keeps logistics firms bustling. This economic strength has spurred population growth in the Puget Sound region, driving up rents and property values. Investors should evaluate county and city property taxes (King County levies can be significant) and factor in energy‑efficiency requirements, which may require upgrades like heat pumps or extra insulation. DSCR lenders may look at your property management plan for short‑term rentals in vacation destinations like the San Juan Islands or mountain ski towns. Eastern Washington markets such as Spokane, Yakima and Tri‑Cities offer lower entry costs and strong rental demand from healthcare, manufacturing and university employees.

Additional DSCR lenders

In addition to Select Home Loans and Griffin Funding, Washington investors should evaluate New Silver, Acra Lending, Kiavi, Lima One Capital and CoreVest. New Silver is known for quick closings and DSCR loans with no minimum DSCR requirement; it offers up to 80 % LTV and both fixed and adjustable terms. Acra Lending provides DSCR loans with minimum credit scores around 660, DSCR as low as 0.75 and 30‑year fixed rates, making it popular among landlords seeking predictable payments. Kiavi offers DSCR products for one‑to‑four‑unit properties and allows unlimited properties; rates start around 7.25 % and LTV can reach 80 %. Lima One Capital requires a DSCR of 1.5 or more and higher credit scores but lends large amounts up to 75 % LTV. CoreVest is active in Washington and finances portfolios of single‑family rentals with DSCR starting around 1.0. Comparing terms like points, reserves and seasoning requirements will help you find the best fit for your portfolio.

Local laws and property considerations

Washington has relatively strict tenant protections; eviction processes can be longer than in other states and require just cause. DSCR lenders will verify that your leases comply with state and local laws and may require higher reserves. In Seattle, plan for higher property taxes and compliance with the city’s energy benchmarking rules, which require owners of larger buildings to track and disclose energy use. Some eastern counties have lower taxes and fewer regulations but may have a limited pool of property managers. For short‑term rentals, check local ordinances in cities such as Spokane or Tacoma; obtaining the right permits is essential for DSCR lenders and can affect projected income. Understanding these regional differences will help you model cash flows and maintain a strong DSCR over time.