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

The Mountain State offers some of the most affordable rental housing in the nation, making it attractive for investors seeking strong cash flow relative to purchase price. According to iPropertyManagement, West Virginia’s average monthly rent hovers around $1,150 and a two‑bedroom unit rents for roughly $1,000. Fair‑market rents are more than 40 % below the national average, and over 86 % of leases in the state cost less than $1,000 per month. For investors, low acquisition costs and steady demand from students, energy workers and retirees combine to make DSCR lending an appealing option.

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 West Virginia

OfferMarket, a DSCR marketplace, lists the key requirements investors must meet to qualify for a West Virginia DSCR loan: a credit score above 660 (with the best terms for 720+), an LLC for borrowing, a DSCR above 1.11, non‑owner occupancy, a non‑rural location, and at least 20 % down payment. CoreVest’s West Virginia program describes a 30‑year DSCR loan that is fixed‑rate, available for single‑family and small multifamily properties, and offers up to 80 % loan‑to‑value on loan amounts between $75,000 and $2 million. These terms show that investors can obtain long‑term financing while focusing on the property’s cash flow rather than personal income documentation.

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 West Virginia

1. Select Home Loans – Leading the West Virginia Market

Website: SelectHomeLoans.com

Phone: 888-550-3296

As a national DSCR specialist, Select Home Loans finances rental properties across West Virginia with DSCR ratios as low as 0.75. It offers down payments starting around 20 %, interest‑only options and unlimited cash‑out. Borrowers may title properties in an LLC, and there is no limit on the number of financed homes. For rural areas, the lender will verify rental comparables and evaluate DSCR to ensure cash flow.

2. OfferMarket 

This online marketplace matches investors with DSCR lenders. It requires a credit score above 660, an LLC, a DSCR above 1.11, non‑owner occupancy and 20 % down. OfferMarket’s platform simplifies the process by handling appraisals and underwriting and providing a quick instant quote so investors can see their interest rate and loan amount in minutes.

3. CoreVest Finance 

CoreVest offers a 30‑year fixed‑rate DSCR loan in West Virginia with up to 80 % LTV on properties such as single‑family homes, condos or townhomes and loan amounts between $75,000 and $2 million. CoreVest focuses on rental properties and allows financing for both short‑ and long‑term rentals, offering investors stability and predictable payments.

Remember that rates and terms vary over time, so always request updated quotes from each lender and compare them against your investment strategy.

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 West Virginia 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 West Virginia 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, West Virginia investors can secure competitive rates, unlock capital for new projects and continue expanding their rental portfolios.

Investing in West Virginia: market insights

West Virginia’s housing market is often overlooked, yet the state offers compelling opportunities for cash‑flow investors. The economy is anchored by energy (coal and natural gas), manufacturing, healthcare and a growing tourism sector linked to the Appalachian Trail and outdoor recreation. Rents are generally low – the two‑bedroom fair‑market rent hovers around $981, more than 40 % below the national average – so achieving high DSCR ratios may require acquiring properties at discounted prices or bundling multiple units. Nevertheless, low acquisition costs help investors buy several homes or small apartment buildings at once. Cities such as Morgantown (home to West Virginia University) and the state capital Charleston offer more dynamic rental markets with student and government tenants. Rural counties may see slower appreciation but often attract long‑term tenants seeking quiet communities. Understanding tenant demographics and local employment drivers will help you project occupancy and maintain strong DSCRs.

Additional DSCR lenders to consider

In addition to Select Home Loans, West Virginia investors can approach OfferMarket, CoreVest, Lima One Capital, Angel Oak and Acra Lending. OfferMarket provides DSCR loans for single‑family and small multifamily properties and requires DSCR above 1.11, credit scores above 660 and down payments of at least 20 %; it prohibits rural properties and owner occupancy. CoreVest offers DSCR loans with 30‑year fixed or adjustable rates, LTV up to 80 % and DSCR starting at 1.0. Lima One Capital requires DSCR around 1.5 but lends up to 75 % LTV and is flexible on borrower experience. Angel Oak offers DSCR loans with 40‑year terms, interest‑only payments and accepts DSCR around 1.0. Acra Lending is a portfolio lender that finances rental properties for investors with DSCR as low as 0.75 and credit scores starting at 660. These lenders differ in underwriting criteria and fee structures; obtaining multiple quotes will help you select the optimal financing.

Regulatory and market considerations

West Virginia is considered landlord‑friendly, but there are still property standards that DSCR lenders will inspect. Many counties require rental registration and inspections to ensure habitable conditions; failing to comply can delay loan approvals. Because parts of the state are prone to flooding and heavy snowfall, lenders may mandate flood or hazard insurance. Investors should also factor in employment stability: areas dependent on coal mining may experience cyclical job losses, while university towns like Morgantown offer more consistent demand. Additionally, West Virginia has fewer professional property managers than larger states, so plan to self‑manage or hire local firms with care. By understanding these risks and opportunities, you can better evaluate deals and maintain strong DSCR metrics.