Washington DSCR Loan Lenders for Long-Term Rentals
Are you seeking long-term private financing for a residential rental property in Washington? On this page you'll find a list of lenders that offer these “DSCR” loans for single family homes, condos, and 2-4 unit rental properties in Washington’s urban areas. Some lenders consider vacation rentals (aka short-term rental or STR). The maximum loan-to-value is 80%. For a purchase, investors need a minimum down payment of 20%, and it could be higher depending on the debt service coverage ratio (DSCR), borrower’s credit score and location. The minimum credit score is 680 for most lenders. The loans terms range from 5 to 30 years.Searching...
Sorry, your search returned no results.
Nationwide Mortgage
Outstanding Service for Investment Property Bridge, Rehab, Rental, and Construction Loans
Washington DSCR Loan Interest Rates
According to the loan documents software company, Lightning Docs, the average interest rate for Washington DSCR long-term rental loans in the 1st quarter of 2024 was 7.56%. The average loan amount was $456,508. These stats are the average of 15 loans funded for residential rental properties in Washington between January 1, 2024 and March 31, 2024 by multiple lenders that use Lightning Docs as their preferred software provider to prepare loan documents.
Funded DSCR Rental Loans in Washington State
RCN Capital, a national direct private lender, funded a $588,026 1st lien position equity cash-out loan secured by a duplex in Tacoma, WA. The property value was estimated to be $858,000 so our loan-to-value was 68.5%. This new Client with RCN wanted to cash out on a free-and-clear duplex property which was purchased for $365,000 in February 2021 and completed about $260,000 in rehab. The property is now appraised at $858K As-Is (Collateral Desktop Analysis confirmed) and both units were leased for a total of $6,195/month, which is above the total market rent of $5,000/month. The subject property is approximately 3,220 square feet, and both units were occupied at closing. The Sponsor had good credit and liquidity to close this deal. The loan was structured at 68.5% loan-to-value presenting 1.10 DSCR. The Borrower plans to continue leasing the property. The interest rate was fixed at 7.3% with amortized payments. The loan term was set at 30 years. This DSCR equity cash-out loan was funded in February 2023.