Specialty Home Loans

Seattle DSCR Loans for Rental Investors | Specialty Home Loans

Financing Seattle rentals on the property’s rent, not your tax returns. Single-family, townhomes, ADUs and small multifamily. Compare lenders with a local broker.

Seattle DSCR loans: what’s different here

Seattle is the hardest place in Washington to make rental numbers work on paper. Prices are high, so the monthly payment is high, and rents often don’t cover it by much. That makes the DSCR (rent divided by the full monthly payment) the number that decides your loan, so we look at it before you make an offer, not after.

We’re based in Kirkland and our team buys, builds, and manages property in Seattle, so we read the numbers from the borrower’s side.

Common Seattle rental properties

  • Single-family homes and older houses with a rentable basement unit
  • Townhomes, including unit-lot townhome projects (we also finance the takeout after the build; see Construction Takeout)
  • Duplexes through fourplexes
  • ADUs and DADUs, where the legal setup matters (separate parcel or accessory to the main house). Lenders treat these differently, so send us the property details early.

The DSCR challenge in Seattle

With 20-25% down, many Seattle rentals come out near or below 1.0. Some programs lend below 1.0 with a larger down payment or different pricing. [Confirm with lender: minimum DSCR, and what a sub-1.0 DSCR costs in down payment.]

Illustrative example (examples only): Townhome, appraised $[900,000], market rent $[4,300]/month, PITIA $[4,450]/month. DSCR = 0.97. Whether this qualifies, and on what terms, depends on the lender and the file. Raising the down payment lowers the payment and the DSCR rises.

Seattle rules to know before you buy

  • Rental property registration and inspection (RRIO) requirements
  • Seattle’s tenant protections, including just-cause eviction and move-in fee limits
  • Permitting and legal status for ADUs/DADUs. Lenders may ask about permits and legal unit status. We’re not attorneys; confirm requirements with the city or your counsel.

FAQ

  • Can I use market rent on a vacant Seattle property? Yes, many lenders do allow using the appraisal rents on un-leased properties.
  • Do you finance DADUs or a main house with an ADU? Depends on the structure and how it’s legally set up. Send us the address and permit details.
  • How much do I need down? As little as 15% down, possibly more for sub-1.0 DSCR.
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