DSCR Loans In Kansas
With experience funding rentals in Kansas City, Wichita, and across the state, we offer industry low rates and a customer experience that’s quick, easy, and reliable from application to closing.
Kansas DSCR Loan Program Overview
Ridge Street Capital is more than just a national lender—we're the lender of choice for Kansas real estate investors looking for reliable funding. This section is here to give you a transparent overview of our Kansas DSCR Loan Program and to help you navigate this page to find the informaition you're looking for.
Key highlights:
- Rates as low as 6.0%
- LTV Up to 80% for purchases, Up to 75% for cash outs
- 0% Origination Fee Available
- Quick Funding in as little as 21 days
- Long Term Rentals and Short Term Rentals
To quickly navigate this page, use the following links:
- Rate: 7.75%
- 30 YR (5/6 ARM)
- Origination Fee: $1,995
- 0 Pre-Payment Penalty
What Is A DSCR Loan?
A DSCR loan is a rental property financing option that allows real estate investors to qualify based on property income instead of personal income. With DSCR loans, Ridge Street measures whether the rent covers the property’s principal, interest, taxes, and insurance payment (PITI). DSCR loans are one of the most popular loan programs for Kansas real estate investors because they are highly scalable and work well with popular investing strategies like the BRRRR Method and Buy & Hold strategies.
How to Calculate the DSCR for Your Rental?
The equation for calculating DSCR is:
DSCR = Rent / (Principal & Interest + Taxes + Insurance)
Rent = Appraised Long Term Market Rent or Projected Short Term Market Rents from AirDNA
Principal & Interest = Monthly Mortgage Payment
Taxes = Monthly Property Taxes
Insurance = Monthly Property Insurance
Use our DSCR Calculator to check the debt service coverage ratio of your Kansas rental property.
DSCR Loan Down Payment Requirements?
When purchasing a property with a DSCR loan, investors are typically required to put down 20% of the purchase price. In addition to the down payment, they must cover closing costs out of pocket. Ridge Street also requires proof of reserves, six months of mortgage payments (PITI), in the investor’s bank account to meet the loan’s liquidity requirements.
See the DSCR Loan Requirements section of this page for detailed breakdown.
As an investor builds their track record, access to fiancing on larger more complex projects is provided:
- Loan amounts up to 75% of After Repair Value
- Projects with at least 20% projected ROI
- An ARV backed by credible sold comps, not inflated listings
DSCR Loan V.S. Conventional Loan?
- DSCR Loans are designed for real estate investors and qualify based on the property’s rental income (Debt Service Coverage Ratio) rather than the borrower’s personal income or tax returns. They offer faster approvals and more flexibility but usually come with higher interest rates (0.5% higher) and larger down payment requirements.
- Conventional Loans rely on the borrower’s W-2 income and debt-to-income ratio. They often provide lower rates and smaller down payments, but the documentation and qualification process is stricter, making them less investor-friendly.
Long Term Rental V.S. Short Term Rentals?
DSCR loans in Kansas can finance both long-term rentals (LTRs) and short-term rentals (STRs). For LTRs, the DSCR calculation is based on the appraised market rent. For STRs, it uses projected short-term income from AirDNA (see our guide on Airbnb Loans).
Short-term rentals often generate higher cash flow, while long-term rentals may offer slightly lower rates compared to DSCR loans for Airbnb properties.
For full details, see the DSCR Loan Programs section of this page.
Kansas DSCR Loan Program Details
Kansas DSCR Loan Program Long Term Rental
Up to 80% LTV for Purchases and Rate & Term Refinances
Up to 75% LTV for Cash Out Refinances
Interest Rates from 6.0% to 7.99%
Origination Fee from 0%
DSCR > 1.0
Loan Size: $50,000 to $2,000,000
Closing in as little as 21 days
Credit Score of 660+ Required
No Experience Required
See Our Complete Guide To DSCR Loans
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Kansas DSCR Loan Program Short Term Rental
Up to 80% TV for Purchases and Rate & Term Refinances
Up to 75% LTV for Cash Out Refinances
Interest Rates from 6.25% to 7.99%
Origination Fee from 0%
DSCR > 1.0
Closing in as little as 21 days
Loan Size: $125,000 to $2,000,000
Credit Score of 700+ Required
Borrower Required to have 1 Personal Mortgage OR 1 Other Rental Property
See our Airbnb Loans Guide
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Kansas DSCR Loan Program 5-10 Unit Multifamily
Up to 75% LTV for Purchases and Rate & Term Refinances
Up to 70% LTV for Cash Out Refinances
Interest Rates from 7.0% to 8.25%
Origination Fee from 1.0%
DSCR > 1.15
Closing in as little as 30 days
Loan Size: $350,000 - $2,500,000
Credit Score of 700+ Required
Borrower Required to have 1 Other 5 Unit Multifamily OR 2 Other 2-4 Unit Multifamily OR 3 other Single Family Rentals
Ready For Your Next Rental Property In Kansas?
Apply NowKansas DSCR Loan Process
Our DSCR Loan origination process includes 5 steps with reliable funding in 21-25 days.
Apply Or Get Pre-Approved Online
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Receive Your Term Sheet
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Submit Docs & Order Appraisal
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Underwriting And Final Approval
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Closing
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Kansas DSCR Loan Requirements
This section provides a complete checklist of the Borrower Requirements, Property Requirements, and Documents needed for a DSCR Loan in Kansas with Ridge Street.
Borrower Requirements
- Credit Score: 660+
- No Mortgage Lates in the last 24 Months
- Liquidity Requirements: Closing Costs + 6 Months PITIA
- First Time Investors Allowed
- Personal Borrower Or LLC
- US Citizen Or Permanent Resident
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Property Requirements
- Property Type: 1-4 Unit Residential or 5-10 Unit Residential
- DSCR > 1.0
- Property Must Be Rent Ready
- Vacant Properties Permitted For Both Purchases and Refinances
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Document Checklist
- Photo ID
- Bank Statement
- Entity Documents (Articles Of Formation, EIN, Operating Agreement) if closing in an LLC
- Appraisal (ordered by Ridge Street)
- Completed Loan Application
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Client Review
Check To See What Terms You Qualify for?
See Your TermsBest Rental Markets in Kansas for DSCR Loans
Kansas offers investors some of the most affordable acquisition prices in the region, a business-friendly regulatory environment, and a rental market anchored by aerospace, healthcare, agriculture, and government employment. The state has no rent control, a landlord-favorable eviction process, and property taxes that remain below many comparable Midwestern states. Kansas City on the Kansas side benefits from cross-metro demand and major economic catalysts, while Wichita operates as an independent metro with its own aerospace and healthcare employment base. Rental demand across the state has trended upward, and for DSCR investors, the combination of lower acquisition costs and stable rents creates qualifying ratios that work comfortably on a wide range of property types.
Wichita
Wichita is Kansas's largest city and the self-described Air Capital of the World, with an aerospace manufacturing economy anchored by major employers including Koch Industries, Spirit AeroSystems, and Textron Aviation. That employment base produces a stable, professional tenant pool with reliable income and long lease tenures. Rental competition in Wichita has tightened significantly, with occupancy rates and lease renewal rates both trending higher. Acquisition prices remain well below national averages, which produces favorable DSCR ratios on most standard single-family and small multifamily acquisitions. For investors running a long-term rental strategy, Wichita offers one of the stronger cash-flow environments in the Midwest.
Kansas City
The Kansas side of the Kansas City metro benefits from the broader region's economic momentum while maintaining lower acquisition prices than the Missouri side. Topeka, the state capital, draws consistent rental demand from state government employment and a healthcare sector anchored by Stormont Vail Health. Rents in Topeka have grown year over year, vacancy holds below the statewide average, and the market's affordability compared to Kansas City proper attracts investors who want stable cash flow without the price premium of the metro core. DSCR loans qualify well in both markets on the strength of the government and healthcare employment base.
Frequently Asked Questions
Why should we use Ridge Street for our Kansas DSCR Loan?
- Investor-Focused Expertise – We specialize in DSCR loans for real estate investors in Kansas, not traditional homebuyers. That means our programs are designed with rental properties and Airbnb's in mind.
- Local Market Knowledge – We understand Kansas market dynamics and structure loans that work for both long-term and short-term rental strategies.
- Speed & Certainty – In competitive Kansas markets, timing matters. Our streamlined process and fast closings help you win deals before the competition.
- Direct Relationship Lending – Unlike big banks, we provide personalized service and tailored loan terms so you’re not just another file in the system.
- Flexible Loan Amount - The minimum loan amount is $55,000, which covers the affordable end of the Wichita and Topeka markets where many investment-grade single-family rentals fall below the $100,000 floor that national programs typically set. Term sheets are issued within two business hours of a completed application.
Can I close a DSCR Loan in an LLC?
Yes, as long as the LLC is registered in the State of Kansas, we can fund the deal in the name of your LLC.
Check out our Complete Guide To DSCR Loans.
How do I setup an LLC in Kansas?
There are several steps involved with setting up an LLC in Kansas. Typically, the process can take 3-5 days. We recommend Northwest Registered Agent for setting up an LLC in KS.
For DSCR Cash Outs and Refinances, does the property have to be rented?
The short answer is no. We understand that investors who fix and refinance properties intend to refinance as soon as possible after renovating a property.
Can I use a DSCR Loan if I have to renovate the property?
No. DSCR loans require the property to be in rent-ready condition at appraisal, defined as a C4 condition rating with no deferred maintenance that would prevent a tenant from occupying the unit. Properties that need work are financed with a fix and flip loan first. Once renovation is complete and the property reaches C4, it can be refinanced directly into a DSCR loan without switching lenders.
Do you also offer Fix and Flip Loans in Kansas?
Yes, you can learn more about our Kansas Fix and Flip Loans here.
What Closing Costs are involved with DSCR Loan in Kansas?
Here is a breakdown of the estimated closing costs on a $300,000 DSCR loan in Kansas:
- Appraisal Fee → $500 – $700
- Title Search & Title Insurance → $1,000 – $1,500
- Recording Fees & Transfer Taxes → $400 – $800
- Title Agent Fees → $750 – $1,200
- Prepaid Reserves (2 Months of PITI) → $2,000 – $3,000
- Insurance → $1,500-$2,000
What are the Pros and Cons of DSCR Loans?
Pros Of DSCR Loans
- No Personal Income Verification
- No tax returns or W-2s required; approval is based on the property's DSCR.
- Can be used for single-family rentals, multifamily units, condos, and short-term rentals like Airbnb.
- Investors can qualify for multiple properties without debt-to-income (DTI) limitations.
- Cash out refinancing available with DSCR loans making them an ideal choice for investors using the BRRRR Investing Strategy.
Cons Of DSCR Loans
- Higher Interest Rates – Typically 0.5% higher than conventional mortgages.
- Requires 20-25% down, while conventional loans may allow as low as 15% for investment properties.
- Prepayment Penalties – Many DSCR loans include penalties if paid off early, especially within the first 3-5 years.
For more information check out our Complete Guide to DSCR Loan Pros and Cons.
Can I get a DSCR Loan under $100,000 in KS?
Yes. Ridge Street's minimum loan amount is $55,000, with a minimum property value of $75,000. Most national DSCR programs set floors between $100,000 and $150,000, which eliminates a significant portion of the investment-grade single-family rental inventory in Wichita, Topeka, and Kansas's secondary markets. The standard program terms apply at all loan amounts above the minimum.
Where can I Learn More about Real Estate Investing in KS?
One of the best ways to get started is by attending local real estate investor (REI) meetups and networking events. Connecting with experienced investors can help you learn market trends, find partners, and source deals.
In Kansas City, the Mid-America Association of Real Estate Investors (MAREI) is one of the largest and most active groups in the Midwest, hosting monthly meetings, workshops, and networking events.
In Wichita, the Wichita Area Real Estate Investors Association (WAREIA) offers education and local deal flow opportunities.
In Topeka, the Topeka Area Real Estate Investors Club connects new and seasoned investors.
For a statewide and national resource, check out BiggerPockets, where you can connect with Kansas investors, access tools, and read educational articles.
Apply For A DSCR Loan In Kansas
Whether you have a property under contract, you're looking to be pre-approved so you can find your next deal, or you'd like to speak with an expert, Ridge Street is your DSCR Lender.
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