How Much Can You Borrow With a DSCR Loan in Wisconsin?
If you're investing in real estate in Wisconsin and you've heard about DSCR loans, you're probably asking the most important question:
"How much can I actually borrow based on the rent?"
The short answer: more than most investors expect - and often without using personal income at all.
Let's break this down clearly and simply.
Quick Answer
With a DSCR loan in Wisconsin, your borrowing power is based primarily on rental income, not your W-2s or tax returns.
Most DSCR lenders require:
- A DSCR ratio of 1.0 - 1.25
- Meaning the property's rent must equal or exceed the total mortgage payment
Want to know your exact numbers?
Call or text Adam Zeman (NMLS #870441) at 414-975-2654
Schedule a call: https://calendly.com/adam-zeman/30min
Or get instant answers using my 24/7 Wisconsin Mortgage & Real Estate Assistant:
https://chatgpt.com/g/g-685422dd22bc8191a39cbdf2be98ec08-wisconsin-real-estate-mortgage-expert
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio.
It compares:
- Monthly rental income
- To total monthly housing payment (PITIA)
Rent ÷ Mortgage Payment = DSCR
For a full explanation of DSCR and why investors use it, Investopedia provides a solid overview here:
https://www.investopedia.com/terms/d/dscr.asp
Typical DSCR Requirements in Wisconsin
While programs vary slightly, most Wisconsin DSCR loans fall into these ranges:
| DSCR Ratio | What It Means |
|---|---|
| 1.00 | Rent equals the mortgage payment |
| 1.10 | Rent exceeds payment by 10% |
| 1.25 | Stronger approval & better pricing |
Lower DSCR ratios may still work - often with:
- Higher down payment
- Slightly higher interest rate
How Much Can You Borrow? (Real Example)
Let's look at a Wisconsin rental scenario:
- Market rent: $2,400/month
- Estimated mortgage payment: $2,200/month
DSCR calculation:
$2,400 ÷ $2,200 = 1.09 DSCR
👉 That property would likely qualify for a DSCR loan.
Now compare that to traditional financing - where personal income, tax returns, and DTI would all be required.
What Income Is (and Isn't) Required
✅ Typically NOT Required
- W-2 income
- Tax returns
- Pay stubs
- Employer verification
✅ Typically Required
- Lease agreement or market rent analysis
- Appraisal with rent schedule
- Proof of assets
- Credit review
This is why DSCR loans are extremely popular with:
- Self-employed investors
- High-net-worth buyers
- Portfolio landlords
- Short-term rental investors
DSCR Loans vs Conventional Investment Loans
Here's a quick comparison:
| Feature | DSCR Loan | Conventional |
|---|---|---|
| Personal income | ❌ Not required | ✅ Required |
| Based on rent | ✅ Yes | ❌ No |
| DTI limits | ❌ No | ✅ Yes |
| Property count limits | ❌ Flexible | ✅ Limited |
If you want a deeper dive into how DSCR loans work in Wisconsin, I break it down fully here:
https://adamzmortgageteam.com/dscr-loans-in-wisconsin-invest-in-real-estate-without-traditional-income-proof-2025-guide/
What About Market Rent vs Actual Rent?
If a property isn't rented yet, lenders often use:
- Appraiser-supported market rent
- Based on comparable rentals in the area
This allows investors to:
- Buy vacant properties
- Reposition under-rented units
- Scale portfolios faster
Frequently Asked Questions
Can I use DSCR loans for short-term rentals?
Yes, in many cases. Some programs use long-term market rent instead of Airbnb income.
Do DSCR loans have limits on the number of properties?
Many programs allow multiple financed properties - far more flexible than conventional loans.
Are rates higher than traditional mortgages?
Sometimes slightly, but many investors prefer DSCR loans because they free up personal income and scale faster.
Why Work With a Wisconsin DSCR Specialist?
Not all lenders structure DSCR loans the same way.
Working with someone who:
- Understands rental markets
- Knows how appraisers calculate rent
- Has access to multiple DSCR programs
…can significantly increase your borrowing power.
Let's Run Your Numbers
If you're investing in Wisconsin and want to know exactly how much you can borrow, let's take a look.
📞 Call or Text: 414-975-2654
🌐 Website: https://www.mkemortgage.com
📅 Schedule a Call: https://calendly.com/adam-zeman/30min
🤖 24/7 Mortgage Help:
https://chatgpt.com/g/g-685422dd22bc8191a39cbdf2be98ec08-wisconsin-real-estate-mortgage-expert
Adam Zeman
Mortgage Loan Originator | Union Home Mortgage
NMLS #870441
Serving Wisconsin Investors Statewide