Kansas offers moderate prices from the Johnson County suburbs to Wichita, which keeps many rentals in qualifying range. Hail and wind insurance is the cost that most often changes the answer.
In short: No single DSCR lender is best for every Kansas rental. The right one has a program that fits your property, rent and leverage, at a total cost you can compare side by side. LendingStreet finances investment property in Kansas with DSCR rates from 6.125%, up to 80% LTV on purchases and up to 75% on cash-out, with a 620 minimum credit score and no tax returns. If a rental falls just short of 1.0x at full leverage, a slightly larger down payment is often enough to bring it over.
CoreVest, RCN Capital, Kiavi and Angel Oak also write DSCR loans, along with LendingStreet. Leverage, reserves and property rules vary by program.
Ask each one to quote the same property at the same leverage. An Olathe single-family home and a Wichita fourplex may fit different programs, and the cheapest rate is not always the lowest total cost.
Our DSCR loans qualify on the property's rent, not your W-2 or tax returns. Rates start at 6.125% for well-qualified borrowers, and short-term rental DSCR starts at 6.49%.
Purchases go up to 80% LTV and cash-out refinances up to 75%. The standard minimum DSCR is 1.0x, with some programs below that. LLC borrowers are welcome, 30-year fixed options are available and the loan minimum is $150,000. Our financing team reviews your scenario and returns 2-3 options.
The Kansas side of the Kansas City metro includes Overland Park and Olathe in Johnson County, known for strong schools and large suburban employers, and Kansas City, Kansas, in Wyandotte County, which generally has lower entry prices. Many investors buy on both sides of the state line.
Wichita is the state's largest city, with a long history in aircraft manufacturing and McConnell Air Force Base nearby. Topeka is the capital, with state government jobs. Lawrence is home to the University of Kansas, and Manhattan is home to Kansas State University and sits near Fort Riley, so student and military renters are common in both.
Kansas sees frequent hail and severe wind. Insurance premiums reflect that, and many policies carry a separate wind and hail deductible, sometimes set as a percentage of the dwelling coverage. Roof age and material often drive the quote.
Insurance is part of the monthly payment in the ratio, so a high premium can push a deal below 1.0x. Get a full quote early, and ask whether an impact-resistant roof would lower it.
This example is illustrative and not a quote. An investor buys a single-family home in Overland Park for $390,000 that rents for $2,600 a month. Taxes and insurance total $520 a month. The sample rate is 7.25% on 30-year amortization.
At 80% LTV the loan is $312,000, principal and interest is about $2,128 and the total payment is about $2,648. DSCR is about 0.98x, just under the standard minimum. At 75% LTV the loan is $292,500, principal and interest is about $1,995 and the total payment is about $2,515. DSCR rises to about 1.03x. The extra $19,500 down moves the deal from below the line to above it. Sample closing costs of $7,500 apply in either case.
| Item | 80% LTV | 75% LTV |
|---|---|---|
| Down payment | $78,000 | $97,500 |
| Loan amount | $312,000 | $292,500 |
| Principal and interest | About $2,128 | About $1,995 |
| Taxes and insurance | $520 | $520 |
| Total monthly payment | About $2,648 | About $2,515 |
| DSCR at $2,600 rent | About 0.98x | About 1.03x |
If you would rather keep more cash, some programs accept a DSCR below 1.0x, usually with lower leverage or tighter credit requirements. No-ratio programs are another option on some files.
Run a few versions of the deal with our DSCR calculator before you decide how much to put down.
Send the address, purchase price or value, the lease or a market rent estimate, an insurance quote that shows the wind and hail deductible and your LLC documents if you borrow through one. Recent bank statements show reserves.
If you are buying on both sides of the Kansas City metro, send them together. We can look at each property and tell you how they compare.
Yes. LendingStreet finances investment property in Kansas, including Overland Park, Olathe, Kansas City, Wichita, Topeka, Lawrence and Manhattan. Loans are business-purpose on non-owner-occupied property with a $150,000 minimum.
It depends on the deal. CoreVest, RCN Capital, Kiavi, Angel Oak and LendingStreet all write DSCR loans. Compare full quotes on the same property and leverage to find the best fit.
Yes. LendingStreet finances investment property in both states. Each property is underwritten on its own rent, taxes and insurance.
Insurance is part of the payment in the ratio, and hail-prone areas often carry higher premiums and wind and hail deductibles. A newer or impact-resistant roof may help the quote.
A slightly larger down payment often brings it over. Some programs also allow ratios below 1.0x, usually at lower leverage.
Often, yes, if the property is a standard residential rental and the loan meets the $150,000 minimum. The rent used is based on the lease or an appraiser's market rent estimate.
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