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

Wyoming is known for its breathtaking landscapes and energy sector rather than dense urban development. Rental markets are small but consistent, supported by workers in natural resources, tourism and state government. iPropertyManagement reports that the average apartment rent is about $1,200 and a two‑bedroom unit rents for roughly $1,100. With fair‑market rents around 37 % below national levels and most leases under $1,000, investors can acquire rental properties at relatively low cost while still generating adequate cash flow.

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 Wyoming

Griffin Funding’s Wyoming DSCR FAQ notes that most lenders require a DSCR greater than 1, but the company will accept ratios as low as 0.75 and may go even lower with compensating factors such as a higher credit score, substantial investor experience or larger down payment. It states that minimum down payment is generally 20 %, although it may increase for DSCR ratios below 1.0. Griffin also highlights that its Wyoming DSCR loans come with loan limits up to $5 million and down payments as low as 20 %, and that these loans can be used for both long‑term and short‑term rentals.

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 Wyoming

1. Select Home Loans – Leading DSCR Lender in Wyoming 

Website: SelectHomeLoans.com

Phone: 888-550-3296

Select Home Loans offers DSCR financing across Wyoming with DSCR requirements starting around 0.75. Investors can borrow up to $5 million per property, close in an LLC and choose 30‑ or 40‑year fixed or interest‑only terms. The lender allows unlimited cash‑out and does not limit the number of properties, providing flexibility for scaling portfolios.

2. Griffin Funding 

For Wyoming, Griffin requires a DSCR greater than 1.0 but may approve ratios as low as 0.75. A minimum down payment of 20 % is generally expected, with higher down payments required when DSCR is below 1.0. Griffin’s DSCR loans feature loan limits up to $5 million and down payments starting at 20 %, and they can be used on both long‑term and short‑term rentals.

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

Investing in Wyoming: market insights

Wyoming’s real estate landscape is defined by wide open spaces, low population density and a strong energy industry. Towns like Cheyenne, Casper and Laramie attract workers in energy, agriculture and government, while tourism drives demand in Jackson Hole and other gateway communities near Yellowstone and Grand Teton National Parks. The state’s average rent of around $1,200 and two‑bedroom rent of $1,100 means cash flows can be modest, but the low acquisition costs often yield solid DSCR ratios. Investors can find deals on single‑family homes and small multifamily buildings in cities like Casper or Rock Springs, and tourism hot spots offer lucrative short‑term rental opportunities. However, the seasonal nature of tourism means vacancy risk should be factored into DSCR projections. Additionally, some rural counties have limited property management services, so investors may need to self‑manage or hire local managers familiar with remote operations.

Additional DSCR lenders

Beyond Select Home Loans and Griffin Funding, Wyoming investors can explore DSCR programs from New Silver, Angel Oak, Acra Lending, Kiavi, Truss Financial Group and CoreVest. Griffin Funding offers DSCR loans with DSCR as low as 0.75 and down payments around 20%, but smaller lenders may specialise in rural or vacation markets. New Silver provides DSCR loans nationwide with no minimum DSCR requirement and LTV up to 80 %, which can help investors with properties in less predictable markets. Angel Oak offers DSCR loans with 40‑year amortizations and interest‑only payments; its credit score minimum is about 660 and DSCR threshold around 1.0. Acra Lending accepts DSCR as low as 0.75 and finances both long‑term rentals and vacation homes; it may also allow foreign nationals. Kiavi provides DSCR products for long‑term rentals with DSCR starting at 1.0 and will lend on multiple properties. Truss Financial Group specialises in DSCR financing with LTV up to 80 % and loan amounts from $100,000 to $3 million; it accepts DSCR ratios as low as 1.0 and offers 30‑year fixed rates. CoreVest funds portfolios and single assets with DSCR of 1.0 and offers large loans up to $5 million. Comparing these options will help you identify the lender most attuned to Wyoming’s unique markets.

Local regulations and risks

Wyoming is generally landlord‑friendly, but investors should understand municipal regulations around short‑term rentals. Towns like Jackson require licenses for vacation rentals and limit occupancy periods; enforcement can be strict given the state’s focus on preserving natural resources and managing tourism impacts. Because many areas are remote, DSCR lenders may require higher reserves to mitigate vacancy risk and property‑management challenges. Borrowers should account for weather‑related expenses, such as snow removal and heating costs, which can affect DSCR calculations. Properties in energy‑producing regions may be subject to boom‑and‑bust cycles that influence rental demand; diversifying into tourism or college towns can help stabilize income. Flood insurance is less common but may be needed near rivers and mountain runoff areas. By proactively addressing these risks and tailoring your business plan, you can maintain a healthy DSCR and protect your investment portfolio in Wyoming.