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

Wisconsin boasts a diverse economy driven by manufacturing, healthcare and technology industries. Cities like Milwaukee and Madison attract young professionals and families seeking affordable housing and quality of life. iPropertyManagement’s 2025 data reports an average rent of about $1,300 per month and a two‑bedroom rent of $1,275, roughly 29.6 % below national averages. Around 67 % of leases in the state are under $1,000, offering investors an opportunity to secure cash‑flowing properties at modest prices.

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 Wisconsin

Longleaf Lending’s Milwaukee DSCR guide explains that investors typically need a DSCR greater than 1.0, with a common approval range between 1.0 and 1.2 although the lender may go lower. The company offers loan values from $75,000 to $2 million, loan‑to‑value ratios up to 80 %, interest rates starting at 6.6 %, 30‑year terms, closing in as little as two weeks and a minimum FICO of 660. A separate section summarizing requirements notes that DSCR can be as low as 0.65, credit score 660, loan amounts up to $3 million, and no prior investor 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 Wisconsin

1. Select Home Loans – Leading DSCR Lender in Wisconsin

Website: SelectHomeLoans.com

Phone: 888-550-3296

Investors in Wisconsin can secure DSCR loans through Select Home Loans with down payments around 20 %, DSCR ratios from 0.75 up, and loan amounts up to $5 million. The lender offers 30‑ and 40‑year fixed or interest‑only terms, unlimited cash‑out and no limit on the number of properties. Properties can be closed in an LLC to protect personal credit.

2. Longleaf Lending 

Longleaf stands out in Wisconsin for its no‑income‑verification DSCR program. It generally requires a DSCR above 1.0 and FICO 660. Loans range from $75,000 to $2 million with up to 80 % LTV, interest rates around 6.6 % and 30‑year terms, and closings often take two weeks. A DSCR as low as 0.65 and loan amounts up to $3 million are available for well‑qualified investors.

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

Investing in Wisconsin: market insights

Wisconsin offers a range of rental markets, from the vibrant urban center of Milwaukee to college towns like Madison and seasonal vacation areas in the Wisconsin Dells and Door County. The state’s average rent of about $1,300 provides reasonable affordability, and a two‑bedroom fair‑market rent around $1,177 means investors can achieve decent DSCRs with modest property prices. Manufacturing, healthcare and higher education drive employment; the presence of large universities creates a steady stream of student renters. Investors considering Milwaukee should analyze neighborhood trends, as certain areas undergo rapid revitalization while others may have higher vacancy rates. Madison continues to experience population growth, particularly in technology and biotechnology, increasing demand for housing. Vacation markets in the Dells and Door County attract tourists for water parks, lakes and festivals; DSCR lenders may finance vacation rentals if projected occupancy is strong and local regulations allow short‑term stays.

Additional DSCR lenders

Wisconsin investors can add Newfi, Kiavi, CoreVest, Acra Lending and Truss Financial Group to their lender shortlist. Newfi advertises DSCR loans with credit scores of 640, DSCR ratios as low as 0.8 and 15‑, 30‑ or 40‑year fixed terms. Kiavi offers DSCR financing for one‑to‑four‑unit properties with DSCR starting at 1.0 and provides both fixed and adjustable rates. CoreVest funds portfolios and single rentals with DSCR down to 1.0 and loans up to $3 million. Acra Lending accepts DSCR as low as 0.75 and provides competitive rates. Truss Financial Group offers DSCR products with 30‑year amortization, interest‑only options and allows foreign nationals. Comparing terms like loan fees, reserve requirements and maximum property counts across these lenders will help you choose the optimal partner.

Property taxes and landlord laws

Wisconsin’s property tax rates are higher than the national average and vary significantly by county. Investors should incorporate these costs into DSCR calculations, especially when evaluating older buildings that might require rehabilitation. Tenant laws balance landlord and tenant rights; eviction processes are relatively straightforward but require proper documentation and adherence to legal timelines. DSCR lenders will confirm you have professional property management or experience to handle tenant issues and maintain strong cash flow. For short‑term rentals, certain municipalities require special permits and impose room taxes; ensure you budget for these expenses. Flooding near lakes and rivers can be a risk, so insurers may require additional coverage. By being proactive about taxes, permits and insurance, you can protect your bottom line and maintain a healthy DSCR.

Further considerations for Wisconsin investors

When evaluating DSCR opportunities in Wisconsin, pay close attention to neighborhood dynamics. In Milwaukee, areas like Bay View and Riverwest attract young professionals and artists, while neighborhoods around Marquette University cater to student renters. In Madison, proximity to the University of Wisconsin campus can drive up rents, but single‑family homes in the suburbs may offer lower entry prices and stable, long‑term tenants. Northern resort towns such as Minocqua and Eagle River experience seasonal demand from vacationers; if you plan to operate short‑term rentals, ensure your business plan includes a marketing strategy for peak seasons and off‑season vacancy. Finally, consider partnering with a knowledgeable local property manager who understands Wisconsin’s tenant laws and can help maintain your DSCR by optimizing rent collection and property upkeep.