DSCR Loans in Wisconsin

Griffin Funding offers Wisconsin DSCR investment loans anywhere in the state of Wisconsin. Some of the areas we serve include:

Traditional mortgage loans like FHA loans and VA loans require personal income and job history verification to be eligible for a loan. With these loans, you’ll typically have to provide documentation like tax returns, pay stubs, and other personal financial information to qualify.

However, other mortgage loans, such as DSCR loans, are available to help borrowers fund real estate investment property purchases. These non-QM mortgage programs use the borrower’s debt service coverage ratio (DSCR) to identify their ability to repay the loan.

Wisconsin’s housing market has grown 9.9% since last year, allowing investors to capitalize on increasing home values and expand their investment portfolio. DSCR loan programs in Wisconsin help investors finance their next investment property by using rental income to qualify instead of personal income or job history verification.

DSCR loans can be used for a wide variety of investment properties, including multi-family homes like apartments and condos, rentals, and commercial buildings.

Securing a DSCR mortgage loan in Wisconsin starts with a simple online application. Upon applying and providing some basic information about the investment property, an agent will reach out to help calculate your DSCR (discussed in detail below), learn more about your existing rental income, and ascertain the new property’s income potential.

Those factors and your personal credit score (a FICO of at least 620 is required) will help paint a picture of what you may qualify for. Because you are leveraging your investment property income, there is no need for traditional employment or income verification.

Once pre-approved, you can lock in your terms and start the quick-moving funding process for your Wisconsin DSCR loan.

DSCR loans in Wisconsin aren’t just for borrowers who don’t qualify for traditional mortgage loans; they offer several benefits for real estate investors. Here are some of the pros and cons:

Pros:

• No proof of income or employment history is required to qualify.
• Faster approval and closing timelines versus conventional mortgages.
• There is no limit to the number of investment properties. All types of rentals are eligible.
• Loan amounts of up to $5,000,000 are available.
• Competitive interest rates and down payments are as low as 20%.
• Fixed-rate terms are available for up to 30 or 40 years.

Cons:

• Interest rates, while still competitive, are typically higher than with traditional loans.
• A down payment of at least 20% of the total cash reserves may be required if purchasing a high-value property, as a down payment of at least 20% is required.
• Based on the local real estate market, meeting the minimum DSCR ratio to qualify for a Wisconsin DSCR mortgage loan may be difficult.
• A lower DSCR may bring a higher down payment requirement or less favorable rates.

DSCR loans are designed for investors who may not qualify for other types of mortgage loans because their tax deductions reduce their net income. However, DSCR loans don’t rely on income verification to determine an investor’s ability to repay the loan.

The most important requirement for a DSCR loan in Wisconsin is your DSCR. You can calculate your DSCR by dividing your estimated monthly rental income by the monthly mortgage payment. The minimum DSCR to get a loan varies by lender. Most lenders require you to have a DSCR anywhere from 1.0 to 1.5. Lenders generally consider a ratio of more than 1.0 to be a good DSCR because it indicates that the rental income safely covers the debt.

However, Griffin Funding makes it even easier to qualify for a DSCR loan in Wisconsin; you can qualify with a DSCR less than 1.0. However, the lower your DSCR, the more you’ll pay in interest and other fees. Other requirements include:

Borrowers may need to provide documentation such as proof of a property’s potential income, lease agreements, and rental analysis. They’ll also need an appraisal to establish how much financing they can receive.

If you don’t qualify for a DSCR investment loan, you may still be eligible for other Griffin Funding loan programs, such as Wisconsin bank statement loans, asset-based loans, and interest-only loans. Download the Griffin Gold app to monitor your credit and begin building an action plan for financing.

DSCR mortgage loans in Wisconsin are a great opportunity for new and veteran investors because they focus on your potential to earn rather than your current personal income, making it easier for you to get a loan to fund your next project or build your real estate portfolio. DSCR loans can also increase your potential returns through a faster approval process, allowing you to purchase property quickly and generate a profit.

Getting approved for a DSCR mortgage in Wisconsin is relatively quick and easy. To apply now, all you have to do is fill out an online application and provide information about the investment property. We’ll identify whether you qualify for a loan and how much you qualify for by calculating your DSCR and letting you know how much financing you can receive. Then, you can lock in your interest rate to secure your loan.

Whether you’re interested in purchasing a short-term rental or you’re new to the world of real estate investing, an experienced Wisconsin mortgage lender like Griffin Funding can help you find the right loan option. Interested in finding out whether DSCR loans are right for your next investment? See if you qualify for a DSCR loan in Wisconsin by contacting Griffin Funding at (855) 394-8288.