Gorgeous Missouri's real estate market is fiercely competitive, especially with its unique position to major cities and its location as the Gateway to the West. If you'd like a more laid-back market than the sizzling and fiercely competitive regions on the coast, Missouri is the place to be - and DSCR loans make it incredibly easy to buy investment properties in the Show-Me State.

Because a DSCR loan relies on the property's cash flow rather than the borrower's financial situation, they're the perfect option for self-employed investors and those who want to shield their personal income with an LLC. Visio Lending, one of the nation's top DSCR loan companies, has helped thousands of Americans buy investment property, and we're ready to assist you in breaking into the Missouri real estate market with a simple loan application and great interest rates.



Why Do Real Estate Investors Love Missouri?

Missouri real estate is one of the best-kept secrets in the US. Its low home price, around $238,760, makes it incredibly affordable compared to other states, and it's experiencing a housing crunch: home inventory has dropped over 10% in the past year, making rental properties an ideal solution for residents. In fact, the average home spends less than a month on the market before sale.

At the same time, values have risen 5% from 2022 to 2023. It's essential to act fast to snap up available rental properties; DSCR loans make this easy with their fast approval process.

Despite being ranked only the 18th fastest growing economy in the country - a major jump from its status at 33rd several years ago - Missouri has outpaced the national average in GDP growth at 2.6%, much higher than the overall US growth of 2%.

A highly diversified economy is a healthy one, and Missouri is consistently ranked in the top 10 for economic diversity. In fact, the Hachman Diversity Index, which measures economic diversity, ranked the state number 1 in 2021, meaning that you can rely upon steady rents thanks to the many options for tenants when it comes to finding a job. Unemployment is quite low at 2.7%, far less than the national average of 3.5%.

It's clear that rental properties in Missouri, though perhaps not as glamorous as in other states, are a wise choice, and a DSCR loan makes it quite simple to get involved in this promising market.


Benefits of DSCR loans for Missouri Real Estate Investors

You have many loan options when you'd like to invest in the real estate market, such as an interest-only option or a conventional mortgage. However, DSCR loans are the most popular choice for those seeking to buy commercial property thanks to their unique stipulations.

They are wholly focused on the property's ability to generate sufficient cash flow to cover the loan payments through the DSCR ratio; since they are geared to real estate investors, they make a natural fit for those wanting to join the real estate market in Missouri.

No Personal Income Verification Required

DSCR loans require a healthy debt service coverage ratio, which refers to the property's cash flow in relation to its debt payment. This means you don't need to provide personal income information, such as tax returns, pay stubs, or your debt-to-income ratio.

Fast Application Process

Because lenders focus on the property's ability to satisfy the monthly payment, there are no complex tax returns to submit. This makes the process much faster, letting you purchase commercial properties before other borrowers are approved.

Higher Loan Limits and More Property Options

Traditional loans have relatively low maximum loan thresholds, but DSCR loans can be used to buy up to $5 million in real estate. They also allow you to buy more than 10 properties with the same loan, which lets you build your real estate portfolio quite quickly.




Requirements for a DSCR Loan: Missouri

Every state has slightly different requirements for a DSCR loan; different lenders, like credit unions, banks, and private companies, will also have unique stipulations. However, these are what most DSCR lenders are looking for in Missouri.

  • Credit score of at least 680 or higher.
  • Calculate DSCR: the rental income divided by the loan payments. Strive for a 1.0 or higher.
  • Submit an appraisal and rent schedule.
  • A loan-to-value ratio of 80% or lower.
  • Down payment of at least 20% of the loan amount, as well as closing costs.

Prepayment Penalty

If you make loan payments ahead of time, you'll need to pay a percentage of the overall loan. This is usually on a step-down schedule.


Hottest Real Estate Markets for Investment Properties

St. Louis and Kansas City are undeniably the hottest places to add to your real estate portfolio in Missouri, thanks to the high rental income generated and great economic potential.

St. Louis city


📍 St. Louis

In St. Louis, the average value for a single-family home is $171,870, much lower than in other states, meaning that your property's income potential far outpaces the cost. Medium rent across all residential property types is $1,200: net operating income is more than enough income to satisfy your payments. Office space is more lucrative here, which makes sense given that this is a governmental hub: you can expect your office building rental properties to make $23.19 per square foot.

Kansas City skyline


📍 Kansas City

Kansas City accounts for 20% of the region's employment, particularly in healthcare and retail. Home values are much higher at $231,454, a 3.6% increase from 2022. Investors can expect their residential rental property to make, on average, $1,313: slightly higher than in St. Louis, though with lower profit margins. As in St. Louis, office space is a better investment than retail: offices make $21.74 per square foot on average, while retail spaces are only $17.11 per square foot.

Both St. Louis and Kansas City have great potential, given that their economies have shown excellent growth over the past few years. A real estate investment here is a wise purchase - and DSCR loans are one of the wisest ways to purchase property for investors.



Closed DSCR Loans Missouri

Check out some of Visio Lending's recently closed DSCR loans in Missouri.


St. Louis Rental Loan


  St. Louis, MO

  • $112,500 Loan Amount
  • Rate & Term Refinance
  • LTR 
  • DSCR: 1.652


  Kansas City, MO

  • $312,000 Loan Amount
  • Rate & Term Refinance
  • STR
  • DSCR: 3.46
Kansas City, MO DSCR


  Kansas City, MO

  • $455,000 Loan Amount
  • Cash-Out Refinance
  • STR
  • DSCR: 1.64
map of missouri

Our DSCR Loans in Missouri have:

  • · Full 30 year terms, no balloons for rental residential properties

  • · The ability to finance in an LLC

  • · No tax documents or personal income verification

  • · Real estate investor-friendly loan programs

  • · Interest only loan options


Contact Us to Start Your Loan