Areas We Serve
Griffin Funding offers Wisconsin DSCR investment loans anywhere in the state of Wisconsin. Some of the areas we serve include:
- Green Bay
- Eau Claire
What Is a DSCR Loan?
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 are available to help borrowers fund real estate investment property purchases, such as DSCR loans. DSCR loan programs in Wisconsin help investors finance their next investment property using rental income to qualify instead of personal income or job history verification. These Non-QM loan programs use the borrower’s debt service coverage ratio (DSCR) to identify their ability to repay the loan.
DSCR loans can be used for a wide variety of investment properties, including multi-family homes like apartments and condos, rentals, and commercial buildings.
Benefits of a DSCR Loan
There are several benefits to getting a Wisconsin DSCR loan over other types of Non-QM loans, such as asset-based loans. For example, unlike asset-based loans, you don’t have to provide collateral to get approved for a DSCR loan in Wisconsin. Other benefits of DSCR loans include the following:
- No personal income requirement
- Quicker closing times
- Loan amounts up to $5,000,000
- Unlimited cash-out
- As little as 20% down
- Ideal for all real estate investors
- Long-term and short-term rentals are eligible
- Interest-only loan options
- Close in the name of your LLC
Wisconsin DSCR loans can support the investment opportunities of both new and veteran investors and long- and short-term rental properties. With faster time to close, you can start your real estate projects faster, helping you reach crucial deadlines important to your business’s bottom line. The faster you get renters into the properties, the more you can earn.
How to Qualify for a DSCR Loan in Wisconsin
DSCR loans are designed for investors who may not qualify for other types of mortgage loans because their deductions on their taxes 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 typically look for a DSCR of at least 1.0, which indicates the rental income covers the debt.
However, Griffin Funding makes it even easier to qualify for a DSCR loan in Wisconsin; you can qualify with a DSCR as low as 0.75. However, the lower your DSCR, the more you’ll pay in interest and other fees. Other requirements include:
- Loan-to-value: Your loan-to-value (LTV) ratio will affect how much you have to pay as a down payment. In most cases, DSCR loans require at least a 20% down payment. However, some lenders may require a minimum down payment of 25%.
- Credit score: Wisconsin DSCR lenders require a minimum credit score of 620.
- Loan purpose: DSCR loans are reserved for investors to purchase or refinance investment property.
- Property types: DSCR loans can be used for residential properties, multi-family properties, townhomes, etc.
Documentation borrowers may have to provide includes 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 Wisconsin DSCR investment loan, you may still qualify for other Griffin Funding loan programs, such as asset-based loans, bank statement loans, interest-only loans, and more.
Do You Need Good Credit to Get a DSCR Loan?
Getting a DSCR loan is typically easier than getting a traditional mortgage loan because the lender focuses more on your potential income rather than your personal income. Most Wisconsin DSCR lenders require a minimum credit score of 640. However, Griffin Funding requires borrowers to have a minimum credit score of 620. A higher credit score can lead to a better interest rate and lower down payment, so it’s always best to increase your credit score before applying for a loan.
Work With a DSCR Lender In Wisconsin
DSCR loans 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 real estate project. DSCR loans can also increase your potential returns through a faster approval process that allows you to purchase property quickly and begin generating a profit.
Getting approved for a DSCR loan is fairly quick and easy. All you have to do is fill out an 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. If you don’t qualify for a loan, Griffin Funding can discuss your options based on your unique financial situation to help you find the right loan for your next property investment.
Whether you’re interested in purchasing a short-term rental or you’re new to the world of real estate investing, Griffin Funding can help you find the right loan option for you. 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. You can also begin the application process by completing our online application form.