DSCR Loans in Wisconsin — 2025 Investor’s Guide
If you’re a real estate investor looking to grow your Wisconsin portfolio without W-2s or tax returns, a DSCR loan (Debt Service Coverage Ratio loan) might be your ticket - qualify based on rental income alone.
What's a DSCR Loan?
A DSCR loan is a non-QM mortgage tailored for investors. It evaluates your rental property’s income against its debt obligations, not your personal income.
- If the property has a DSCR of 1.0 or higher, it means the income covers the mortgage payments.
- Lenders often require a DSCR of 1.2 to 1.25+ for approval and lower rates. Learn more via [Investopedia's DSCR formula breakdown
Why Wisconsin Investors Love DSCR Loans in 2025
- No income verification needed - skip the W-2s and tax return drama.
- Flexible for both long-term rentals and short-term rentals in high-demand areas.
- Ideal for scaling portfolios through LLCs or self-directed investments.
Pros & Cons (Wisconsin Context)
| Pros | Cons |
|---|---|
| Qualify based on rental income, not personal income docs | Slightly higher interest rates than conventional loans |
| Quicker closings with less documentation | Requires 20 - 25% down payment typically |
| Works for diverse rental property types | Dependent on consistent rental demand |
DSCR - How It's Calculated
DSCR formula:
Net Operating Income / Annual Debt Service
Example: If NOI is $50,000 and annual debt obligations total $40,000, the DSCR is 1.25 - indicating 25% more income than required to service the debt. Griffin Funding
Internal & External Resources
- Get the full breakdown: My detailed DSCR guide
- Learn more on the ratio mechanics: Investopedia: What is DSCR?
Why DSCR Loans are a game changer in Wisconsin
Bottom Line
DSCR loans are a fast lane for investors looking to grow in Wisconsin - no personal income hoops, just pure property performance. Perfect for 2025's competitive market.
Ready to Build Wealth with Rental Properties?
📲 Adam Zeman
Mortgage Loan Originator, NMLS #870441
Union Home Mortgage
📞 414‑976‑2654
✉️ azeman@uhm.com
🌐 www.mkemortgage.com
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