DSCR Loans in Washington

Washington's no state income tax, tech-giant economy, and growing secondary markets create DSCR opportunities in the Pacific Northwest's economic powerhouse.

$585K
Median Home Price
$2,200/mo
Median Monthly Rent
0.87x
Est. DSCR at Median
70+
Lenders in Network
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MARKET OVERVIEW

Washington DSCR Loan Market

Washington state offers DSCR investors access to a tech-driven economy anchored by Amazon, Microsoft, Boeing, and hundreds of tech companies, with no state income tax. Seattle proper has high prices and tenant-friendly regulations, making standard DSCR ratios challenging. Tacoma has emerged as the value alternative to Seattle with more favorable DSCR metrics. Spokane on the east side has experienced significant growth with the most affordable entry points in the state. Washington's property tax rate of 0.87% is moderate. The No-Ratio DSCR program is common in Seattle, while Tacoma and Spokane can work with standard DSCR.

TENANT-FRIENDLY STATE

Top Investor Cities

  • Seattle
  • Tacoma
  • Spokane
Effective Property Tax Rate
0.87%

Monthly tax on $585,000 property: $424/mo

REQUIREMENTS

DSCR Loan Requirements in Washington

Licensing & Regulatory

Loans in Washington are originated by [Broker B], NMLS# [XXXXXX], licensed in Washington.

All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.

Common Property Types

  • Single-Family Rentals
  • Small Multifamily (2-4 Units)
  • Condos/Townhomes

Down Payment & LTV

  • Standard DSCR: 20% minimum down (80% LTV)
  • No-Ratio DSCR: 30% minimum down (70% LTV)
  • 30%+ down unlocks No-Ratio DSCR programs and broader lender access

Appraisal & Rent Schedule

  • Form 1007 rent schedule required with appraisal
  • Appraisal estimates market rent for DSCR calculation
  • STR properties: AirDNA projected income accepted

DEAL EXAMPLE

Sample DSCR Deal in Tacoma, Washington

Duplex

Tacoma, Washington

DSCR
Purchase Price $495,000
Down Payment 25% ($123,750)
Loan Amount $371,250
Loan Type 30-Year Fixed DSCR

Monthly Breakdown

Principal & Interest $2,470
Property Tax $359
Insurance $210
Total PITIA $3,039
Monthly Rent $3,200
DSCR Ratio
1.05x
Monthly Cash Flow
+$161
Close Time
26 days
DSCR = $3,200 ÷ $3,039 = 1.05x

This borrower closed in 26 days with no income verification, no tax returns, and no employment check.

Results may vary. This is a representative example, not a guarantee of future performance.

This deal example is for illustrative purposes only and is based on representative scenarios across our broker network. Actual loan terms, approval, and closing depend on your full credit profile, property details, appraisal, and the matched lender's specific guidelines. This is not a loan offer or commitment to lend.

FREQUENTLY ASKED

DSCR Loan Questions for Washington Investors

DSCR loans in Washington require a minimum 660 credit score, 20% minimum down payment, and non-owner-occupied status. No income docs or tax returns needed. In Seattle, the No-Ratio program (30% down, 680+ credit) is common. Tacoma and Spokane typically qualify for standard DSCR.

Rates start from 5.99% for 740+ FICO with 35%+ down. Most Washington investors see rates between 6.50% and 7.50%. The state's strong fundamentals and tech-driven economy give lenders confidence.

Yes, but with caution. Seattle has strict STR regulations. San Juan Islands, Leavenworth, and other tourist areas are more STR-friendly. Our STR DSCR program uses projected income to qualify. Always verify local regulations.

Washington's effective property tax rate is approximately 0.87%. On a $495,000 duplex, that's about $359/month. The rate is moderate, and Washington has no state income tax, which improves your overall return even if monthly DSCR is tight.

Yes. DSCR loans have no owner-occupancy requirement. Washington's no state income tax applies to rental income. Tacoma and Spokane are popular choices for out-of-state investors seeking better cash-flow metrics than Seattle.

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Loans in Washington are originated by [Broker B], NMLS# [XXXXXX], licensed in Washington. is not affiliated with DSCRBroker.com except as a participating broker in our matching network. All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.