DSCR Loan Wisconsin
Funded Wisconsin DSCR Loan Example
This triplex in Merrill, WI was funded by Ridge Street with a 75% LTV cash-out refinance DSCR loan. The property was owned by real estate investor looking to access equity in their rental property to make further investments and was qualified using the cashflow of the property.
- Rate: 7.65%
- 30 YR (FRM)
- Origination Fee: $2,500
- 25 Days to Close
.png)
What Are DSCR Loans Used For In Wisconsin?
Wisconsin DSCR loans are an investment property financing option that allows real estate investors to qualify based on a rental property’s cash flow rather than their personal income. DSCR loan qualification is determined by whether a property’s projected rental income covers its monthly debt service obligation, including principal, interest, taxes, insurance, and applicable HOA dues. When rental income meets this requirement, DSCR loans can be approved without relying on W-2s, tax returns, or pay stubs.
1. Milwaukee
2. Madison
3. Green Bay
In Wisconsin, where demand remains strong for both long-term and short-term rentals, DSCR loans provide a highly scalable financing solution. Because qualification is based on property performance rather than traditional debt-to-income (DTI) limits, investors can purchase or refinance multiple properties and expand their portfolios beyond the constraints of conventional financing.
Common Uses For DSCR Loans in Wisconsin
DSCR loans are commonly used for:
- Long-term rental properties in Milwaukee, Madison, Green Bay and suburban markets across Wisconsin.
- Airbnb Rentals near sports venues, hospitals, travel corridors, and event-driven markets. The specialized DSCR Loan for Airbnb product is used for these short-term rental investments.
- Refinancing BRRRR projects, where investors purchase, renovate, rent, and then cash out refinance their properties when executing the BRRRR investing strategy.
- Portfolio expansion for investors scaling across multiple properties without personal DTI constraints.
Wisconsin DSCR loans are used by both self-employed and W-2 investors because DSCR loans do not report to personal credit and qualification is based on a property’s cash flow rather than the borrower’s personal debt-to-income (DTI). This makes them an appealing financing option for building or expanding rental portfolios.
Wisconsin DSCR Loan Products
Low Rates, from 0% Origination for long term & short term rentals in Wisconsin.
Long Term Rental DSCR Loans Wisconsin
Perfect for first-time or experienced investors scaling their 1 to 4 unit rental portfolio.
Up to 80% LTV 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
Loan Size: $55,000 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
.png)
Short Term Rental DSCR Loans Wisconsin
Designed for saavy investors pursuing higher rents with a short term rental strategy.
Up to 80% TV for Purchases and Rate & Term Refinances
Up to 75% LTV for Cash Out Refinances
Interest Rates from 6.5% 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
.avif)
5-10 Unit Multifamily DSCR Loans Wisconsin
For experienced investors only, looking to pursue larger multifamily rental property deals.
Up to 75% LTV for Purchases and Rate & Term Refinances
Up to 70% LTV for Cash Out Refinances
Interest Rates from 7.0% to 7.99%
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
How To Calculate DSCR For Wisconsin Rental Properties
The Debt Service Coverage Ratio (DSCR) is calculated by dividing the monthly rental income of the property by the total debt service obligation.
DSCR = Rent / (PITIA)
Where PITIA includes:
- Principal
- Interest
- Taxes
- Insurance
- HOA (If applicable)
The basis of a DSCR loan in Wisconsin is that the rent collected from leasing the property must be greater than the total operating costs.
A DSCR of 1.0 or higher means the rental income covers all expenses and the property is considered to be cash flowing.
Use our DSCR Loan Calculator to estimate your property’s DSCR and determine whether the property qualifies for a DSCR Loan.
.png)
DSCR Loan Calculation Example in Wisconsin
Property Value: $474,000
Loan: $379,200
Interest Rate: 6.6%
Ammortization: 30 YR (FRM)
Monthly Rent: $3,250
P&I Payment: $2,421.79
Monthly Taxes: $400.00
Monthly Insurance: $180
Monthly HOA: $0
DSCR 1.08
Wisconsin DSCR Loan Process
Our DSCR Loan origination process includes 5 steps with reliable funding in 21-25 days.
Apply Or Get Pre-Approved Online
.png)
Receive Your Term Sheet
.png)
.png)
.png)
Submit Docs & Order Appraisal
.png)
Underwriting And Final Approval
.png)
Closing
.png)
When To Use a DSCR Loan in Wisconsin?
DSCR loans are used by investors to hold real estate long-term. There are several real estate investing scenarios that are ideal for DSCR Loans, including:
- Purchasing Turnkey Long Term Rentals
- Cash Out Refinancing in the BRRRR Investing Strategy
- Purchasing Turnkey Multifamily Properties
- Financing Short-term rentals/Airbnbs
- Cash Out refinancing to scale an investment portfolio
When Not To Use a DSCR Loan in Wisconsin?
Although DSCR loans are a popular option, they are not suitable for:
- Owner-occupied properties
- Primary residences or second homes
- Properties with insufficient rental income to cover debt service
- Short-term bridge financing for quick resale (Bridge-to-Sell)
- Value-add projects that have not yet stabilized with rental income
Benefits Of DSCR LoanS Compared To Other Loan Types
The key advantages of DSCR loans compared to conventional financing options are:
- No personal income verification
- No tax returns or W-2s
- Scalable for growing portfolios
- Less documentation than conventional loans
- Works for LTRs and STRs
- DSCR Loans do not report to personal credit
Wisconsin DSCR Loan Requirements
This section provides a complete checklist of the Borrower Requirements, Property Requirements, and Documents needed for a DSCR Loan in Wisconsin.
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
.png)
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
.png)
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
.png)
Review Of The Best Rental Markets In Wisconsin For DSCR Loans
Wisconsin offers stable, cash-flow–oriented rental markets that are well-suited for DSCR loan financing. Compared to higher-priced coastal states, Wisconsin benefits from relatively affordable home values, consistent tenant demand, and rental income that often supports DSCR qualification without aggressive leverage assumptions.The state’s rental demand is driven primarily by employment centers, universities, healthcare systems, and regional tourism rather than seasonal spikes. For investors focused on long-term rental strategies and small multifamily properties, Wisconsin provides a favorable environment for DSCR-backed investments.
DSCR Loans in Milwaukee, WI
Milwaukee is Wisconsin’s largest rental market and a core city for DSCR loan investors seeking dependable long-term cash flow. The city’s diverse economy—anchored by healthcare, manufacturing, education, and financial services—supports steady tenant demand across multiple submarkets.Home prices in Milwaukee remain accessible relative to rental rates, which helps many properties achieve DSCR requirements without excessive down payments. Small multifamily and single-family rentals are especially attractive for investors using DSCR loans to build scalable, income-producing portfolios.
DSCR Loans in Madison, WI
Madison benefits from one of the strongest and most stable rental demand profiles in the state, driven by the University of Wisconsin–Madison and a growing technology and healthcare presence. The large student and professional population creates consistent occupancy levels and predictable rental income.While property values in Madison tend to be higher than other Wisconsin markets, rental rates are also stronger, often supporting DSCR qualification for well-located properties. Investors using DSCR loans in Madison typically focus on long-term rentals that emphasize stability and lower vacancy risk.
DSCR Loans In Green Bay, WI
Green Bay offers a more affordable entry point for rental property investors while still providing reliable rental demand. The local economy is supported by manufacturing, healthcare, and regional employers, contributing to steady long-term rental needs.Lower acquisition costs combined with solid rent-to-price ratios make Green Bay appealing for investors targeting conservative DSCR structures and strong cash-on-cash returns. For investors looking to expand into secondary Midwest markets, Green Bay can be an effective complement to larger Wisconsin cities within a DSCR-financed portfolio.
Wisconsin DSCR Loan FAQs
Can I close a DSCR Loan in an LLC?
Yes, as long as the LLC is registered in the State of Wisconsin, we can fund the deal in the name of your LLC.
Check out our Complete Guide To DSCR Loans.
What is the minimum DSCR required in Wisconsin?
DSCR loans in Wisconsin require a minimum debt service coverage ratio of 1.0 to ensure the property is cash flow positive and that the rental income can cover the full debt service of the property.
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?
To obtain a DSCR Loan in Wisconsin, the property must be in rentable condition. Formally, this means the property must obtain an appraised condition rating of at least C4/C6 with no deffered maintenance. If property renovation is needed before holding it as a rental, you can use a Wisconsin Hard Money Loan.
Do you also offer Fix and Flip Loans in Wisconsin?
Yes, Ridge Street offer fix and flip loans in Wisconsin.
What Closing Costs are involved with DSCR Loan in Wisconsin?
Here is a breakdown of the estimated closing costs on a $300,000 DSCR loan in Wisconsin:
- 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 in Wisconsin?
Pros Of Wisconsin 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 Wisconsin 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 WI?
Yes, our mininium loan amount is $50,000 for DSCR Loans. Note that the minimum collateral value of a property that we can finance is $75,000.
Where can I Learn More about Real Estate Investing in WI?
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 Milwaukee, the Wisconsin Real Estate Investors Association (WREIA) hosts monthly meetings, workshops, and networking events.
In Madison, the Madison Real Estate Investors Association (MREIA) offers educational programs and investor networking.
For a statewide and national resource, check out BiggerPockets, where you can connect with Wisconsin investors, access tools, and read educational articles.
Apply For A DSCR Loan In Wisconsin
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 a leading DSCR lender in Wisconsin and can help.
.png)
.png)
