Known for delicious cheese and excellent breweries, Wisconsin has something else to add to its prestige: incredible investment opportunities for those looking to add to their real estate portfolio.

Short-term rental properties are hot here, as it's one of the most attractive destinations for big-city visitors from Chicago who would like to relax in its many cozy hamlets; however, it also has strong rental income potential from year-long residents. About a third of Wisconsin residents rent their homes, and monthly rental rates have risen almost 25% since 2021, representing serious potential income for prudent real estate investors.

If you'd like to join the thousands of entrepreneurs who are finding fortune in the green dales and hills of Wisconsin, DSCR loans are one of the best ways to do so - and Visio Lending is the best mortgage lender in the state. We make accessing financing for investment properties simple and streamlined with our easy application process, which requires far less paperwork than a traditional mortgage loan. Begin generating income faster than ever through DSCR loans in Wisconsin through Visio Lending.



What Makes Wisconsin a Hot Market for Real Estate Investors?

When it comes to investment properties, many real estate investors ignore the heartland in favor of the big cities, but this can be a huge mistake. Investment property in the Heartland, such as Wisconsin, can be highly effective, as the property values are lower than in other areas. Your property's potential income can be much higher here if you buy low and sell high - and Wisconsin's prospects are very bright, promising a great return on investment.

Strong Real Estate Market

Housing is very hot here in Wisconsin, as one-bedroom homes have risen in value by almost 17% in the past year. While many markets experienced a boom during the pandemic, the Badger State's home stock only continues to fly off the market: in 2022, some properties were bought within two days of being listed. Many choose to remain renters thanks to the stress of competing in such an intense marketplace, which is great news for a real estate investor.

Despite this, a single-family home in Wisconsin costs around $297,100 on average, far less than in pricey areas like New England or the West Coast. You can qualify for a DSCR loan much faster than for a traditional mortgage loan, which gives you a leg up on other investors still trying to get financing for their purchase.

Another reason to seek DSCR loans in Wisconsin is that the state has no rent controls; in fact, it's entirely prohibited by state law to restrict how much a landlord can increase pricing. This means you can charge competitive rents without concern of municipal bylaws, ensuring you can make plenty of rental income to cover your monthly mortgage payment.

Booming Economy

Like the tenacious animal of its nickname, the Badger State is working hard to revitalize its economy and add new jobs. It's expected to add 191,222 new jobs to the economy by 2030, a growth of nearly 6.3%; many of these will be in blue-collar roles like manufacturing and agriculture, which makes an investment property near these industrial zones an excellent choice.

A strong focus on automated manufacturing ensures that Wisconsin will remain competitive in the coming years; food manufacturing giant Nestle is also adding new production lines to its Wisconsin plants, bringing further attention to this state's untapped potential as an economic powerhouse.

Excellent Local Tourism

For decades, Wisconsin has been known as a place where tourists from places like Chicago and Detroit come to relax; in fact, tourism rose by an unprecedented 8.7% from 2021 to 2022, reaching a record-breaking 111.1 million. As many are overnight vacationers, short-term rentals in popular spots like Madison, Wisconsin Dells, and Kenosha are brilliant options for investors wanting to find highly productive property in this promising economy.


Why Pursue DSCR Loans in Wisconsin?

Unlike traditional mortgage loans or bank statement loans, real estate investing with Wisconsin DSCR loans is a simple process that relies almost entirely on the property's potential income rather than your own financial history. This gives DSCR loans a much shorter timeline than the long, drawn-out application for other mortgage loans, which require an exhaustive investigation into the borrower's financial health.

No Personal Income Verification Required

As the loan purpose is strictly for an investment property, lenders require very little income information from borrowers: no tax returns, no pay stubs, or debt-to-income ratio calculations.

Greater Range of Real Estate Investment Opportunities

There are an abundance of property types that can be covered with a DSCR loan - many of which would not be eligible for conventional mortgage loans. Non-warrantable condos, multi-unit residential property, and commercial real estate are all eligible for DSCR loans.

As the loan purpose is solely for investment, you cannot use these loans to finance owner-occupied property or rural homes; however, nearly any type of investment property will qualify.

Better yet, you can roll more properties into a DSCR loan than with any other loan type: a conventional loan will only finance up to 10 units, but as long as your investments will cover the overall mortgage payment, you can purchase far more properties with a Wisconsin DSCR loan.



Requirements for a DSCR Loan: Wisconsin

While DSCR loans require far less paperwork and no personal income information, there are still stipulations you must consider when applying for these loans, such as the minimum DSCR and the loan-to-value ratio.

Credit Score

While you don't need to show tax returns or other personal information, you will still need to prove your creditworthiness to be approved for most DSCR loans. Most lenders require a score of at least 640 for Wisconsin DSCR loans; this is lower than in other states in deference to the more humble market. However, the higher your score, the better interest rates you can acquire, so strive for a 680 or higher.

Debt Service Coverage Ratio (DSCR)

DSCR loans focus on the DSCR ratio, which divides the rental income by the monthly mortgage payment, called PITIA (principal, interest, taxes, insurance, association dues). If the rental income covers the payments, it's a 1 or above, but if the net operating income is lower than the loan payments, you have a negative DSCR. Most lenders require a minimum DSCR of 1.2 or higher, though 1.25 makes you a better contender.

DSCR Calculator

Appraisal and Proof of Property's Cash Flow

Lenders require an appraisal of the property before approving DSCR loans; you'll also need to submit a rental analysis, called a rent schedule, which proves the expected rental income.

Loan-to-Value Ratio

This refers to how much you borrow versus how much the property costs. The maximum loan-to-value ratio is 80%, but some lenders will want no more than 75%.

Down Payment

Your down payment amount will be directly proportional to the loan-to-value ratio, typically 20% or more. You'll also need to pay closing costs as with other mortgage loans.


Best Markets for Wisconsin DSCR Loans

DSCR loans anywhere in Wisconsin are a wonderful idea, but these four markets are some of the hottest in the state, based on economic projections, variety of profitable property types, and potential rental income.

Wisconsin DSCR loans

📍 Madison

The capital of the state, Madison is known for its colorful, quirky vibe and its large population of college students. With the many tourists coming to bask in its beauty, both long-term rentals and short-term rentals do very well here.

As the average home price here is much higher than the state average - about $376,977 - accordingly, rental properties generate more income. The average rent is $1,622 across all residential properties. Both office and retail spaces average about $23.60 per square foot.

Vacations and staycations are a mainstay of the Madison economy, so it's no wonder that the average cost of a vacation rental is an incredible $300 per night, with some averaging even higher at $1,987 per night. An attractive, well-maintained home in a desirable location could make big money for a clever investor.

📍 Milwaukee

Famous for its breweries, Milwaukee also has many cultural attractions, including the Milwaukee Public Museum, Milwaukee Museum of Art, and the Warehouse Art Museum. It's also home to the Milwaukee Brewers, drawing in sports fanatics from around the Midwest.

Home values are much lower here than in Madison at about $195,566, but rents are only a little lower at $1,410, making it an excellent place to purchase investment property. Office and retail space rents are comparable to the capital at around $22.30 per square foot.

📍 Kenosha

Kenosha is where weary travelers go to breathe fresh Midwestern air, making vacation rentals a great use of a DSCR loan: you can generate $348 per night on average. Home values sit squarely between Milwaukee and Madison at $232,810, but its rents are lower at $1,350 per month. Commercial space is cheaper at about $17.61 per square foot.

📍 Green Bay

Home of the NFL team, the Packers, this town has emerged like a phoenix from its gritty industrial roots to become a peaceful and contemporary urban area. Home values are comparable to Kenosha at $235,138, but the cost of living is much lower: about 10% below the national average.

Part of this low cost of living is due to the fact that rents are quite low at $949 per month across all residential rental types. Commercial real estate is shockingly affordable, averaging only $12.70 per square foot. This signifies great growth potential for those who want to participate in this city's regeneration through small businesses and investments.


Closed DSCR Loans Wisconsin

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


Green Bay Rental


  Green Bay, WI

  • $262,500 Loan Amount
  • Purchase
  • STR 
  • DSCR: 2.07


Kenosha, WI

  • $102,480 Loan Amount
  • Cash-Out Refinance
  • LTR
  • DSCR: 1.55


  Milwaukee, WI

  • $136,500 Loan Amount
  • Cash-Out Refinance
  • LTR
  • DSCR: 1.56
map of wisconsin

Our DSCR Loans in Wisconsin 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


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