Wisconsin DSCR Loans – 2025 Guide for Real Estate Investors
Looking to buy or refinance an investment property in Wisconsin - without showing W-2s or tax returns? DSCR (Debt Service Coverage Ratio) loans make it possible. These programs use property income to qualify, not your personal income. That means you can close faster, build your portfolio sooner, and skip the paperwork headache.
Start your investment journey today:
📞 Call/Text: 414-975-2654
🌐 www.mkemortgage.com
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What Is a DSCR Loan?
A DSCR (Debt Service Coverage Ratio) loan is a type of investment property financing that qualifies borrowers based on the property's cash flow rather than personal income.
The formula is simple:
DSCR = Net Operating Income ÷ Total Debt Payment
If the property's rental income covers the mortgage payment, you may qualify - even if you're self-employed or don't show traditional income on paper.
For a deeper explanation of the formula, visit Investopedia's DSCR definition or NerdWallet's DSCR overview.
Wisconsin DSCR Loan Highlights
- ✅ No tax returns or W-2s required (in most cases)
- ✅ Close in your personal name or LLC
- ✅ Works for long-term or short-term rentals (Airbnb/VRBO)
- ✅ Fast closings when appraisal and rent schedule support income
- ✅ Perfect for scaling real estate portfolios
Typical DSCR Loan Requirements (2025 Programs)
- Minimum DSCR: 1.00 (1.20+ preferred for best pricing)
- Down Payment: 20 - 25%
- Credit Score: 640+
- Reserves: 3 - 12 months (varies by lender)
- Property Types: 1 - 4 unit homes, condos, townhomes, some multifamily properties
If you're wondering whether a DSCR or a conventional loan fits your strategy best, see my detailed comparison:
🔗 Conventional Loans Wisconsin - The 2025 Homebuyer's Guide to Smarter Financing
How DSCR Is Calculated (Real Example)
Example:
- Monthly rent (NOI): $2,600
- Total mortgage payment (PITI): $2,150
- DSCR = 2,600 ÷ 2,150 = 1.21
A ratio of 1.21 means the property's income exceeds its payment by 21% - a strong approval scenario with great pricing.
DSCR vs. Conventional: Which Is Better for You?
| Feature | DSCR Loan | Conventional Loan |
|---|---|---|
| Qualifies by | Property Income | Personal Income |
| Down Payment | 20 - 25% | 15 - 25% |
| Docs Needed | Lease or Appraisal Rent | W-2s, Paystubs, Tax Returns |
| Ideal For | Investors & LLCs | Primary & Second Homes |
Internal Link:
For borrowers focusing on personal homes, check out Mortgage Pre-Approval in Wisconsin - From Call to Pre-Approval Letter in 3 Easy Steps.
Rates, Pricing, and Cash-Out Options
Your DSCR loan rate depends on:
- DSCR ratio (higher = better pricing)
- Loan-to-Value (LTV)
- Credit score
- Property type and use
- Whether it's a purchase, rate-term, or cash-out refinance
If you're considering tapping equity from an existing rental, see:
🔗 Wisconsin Cash-Out Refinance Guide 2025 - Unlock Your Home Equity for Improvements or Debt Relief
Tips to Improve Your DSCR Approval
- Increase rent or use market rent from the appraisal to boost your ratio
- Lower loan amount or buy down your interest rate
- Maintain strong reserves (3 - 6 months minimum)
- Provide lease or Airbnb history if the property is short-term rental
Your Next Step: Let's Maximize Your Investment Strategy
Whether you're a first-time investor or managing multiple properties, my team and I make the process fast, transparent, and simple.
I'll help you calculate your DSCR, find the best structure, and lock in your rate - often with less documentation than any other lender.
About Adam Zeman - Wisconsin's DSCR Loan Expert
NMLS #870441 | Union Home Mortgage
📞 414-975-2654 | ✉️ azeman@uhm.com
🌐 www.mkemortgage.com
🤖 24/7 Mortgage & Real Estate Info
📅 Schedule a Call
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