What is a DSCR loan and how does it work in Washington?

A DSCR loan (Debt Service Coverage Ratio loan) is an investment property mortgage that qualifies based on the property's rental income rather than your personal income. The lender calculates the DSCR ratio: if a property generates $2,000/month in rent and the mortgage payment (PITIA) is $1,600/month, the DSCR is 1.25 — meaning the property covers 125% of its debt. No W-2s, no tax returns, no personal income documentation required. It's the primary tool for scaling a Washington rental portfolio past the conventional 10-property cap.