A rental house in Bellevue, Kirkland or Queen Anne often costs more than $1 million, and the tenants are frequently tech employees on corporate relocations. A large-balance DSCR loan qualifies that home on its rent, but at these prices leverage is usually set by the ratio, not the program cap.
In short: LendingStreet finances $1M+ rentals in Seattle and on the Eastside with DSCR loans that qualify on the property's rent, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, rates start at 6.125% for well-qualified borrowers, and purchases go up to 80% LTV, though large balances often get less and need more reserves. Single-family homes on the Eastside often need a larger down payment than the program maximum implies to reach a 1.0x ratio, while Seattle duplexes, triplexes and homes with a backyard cottage spread the payment across more rent. Seattle's tenant rules and Washington's newer statewide rent cap are worth checking before you buy.
Lake Washington splits the region into two different rental markets. Both have strong renter demand from major employers, but the housing stock and the rules are not the same.
Use this as a general guide to what to check, then confirm with current comps and city rules.
| Item | City of Seattle | Eastside (Bellevue, Kirkland, Redmond, Mercer Island, Sammamish) |
|---|---|---|
| Common $1M+ rental | Older homes, duplexes and triplexes, homes with a detached ADU | Newer and larger single-family homes, townhomes |
| Typical neighborhoods | Ballard, Fremont, Queen Anne, Capitol Hill, Wallingford, West Seattle, Magnolia | Downtown Bellevue area, West Bellevue, Kirkland waterfront areas, Redmond near major campuses |
| Local tenant rules | Extensive city tenant protections | Generally follow state law; check each city |
| Short-term rentals | Licensed, with limits on how many units one operator can run | City-by-city rules |
| Ratio challenge | Older systems, permits on added units | High price against a single rent |
Our purchase maximum is 80% LTV, and on larger balances the maximum is often lower. But on a single-family home with one tenant, the ratio usually limits the loan before the program does.
DSCR compares the monthly rent to the full payment: principal, interest, taxes, insurance and any HOA. Raise the loan and the payment grows while the rent stays the same. Eastside homes in particular often need a larger down payment to bring the payment down to the rent.
That is not a problem if you plan for it. Run the ratio before you make an offer, so the down payment is a known number rather than a surprise during underwriting.
This example is illustrative and not a quote. An investor buys a single-family home in Bellevue for $1,700,000 and leases it for $9,300 a month. Taxes are budgeted at $1,400 a month and insurance at $250.
At 65% LTV the loan is $1,105,000 and the down payment is $595,000. At a sample rate of 7.25% on a 30-year fixed, principal and interest is about $7,538. The total payment is about $9,188, and DSCR is $9,300 divided by $9,188, or about 1.01x.
At 75% LTV the loan would be $1,275,000, principal and interest about $8,698 and the total payment about $10,348. DSCR drops to about 0.90x. A sub-1.0 program could be an option, but most investors in this spot choose the larger down payment.
| Item | 65% LTV | 75% LTV |
|---|---|---|
| Loan amount | $1,105,000 | $1,275,000 |
| Down payment | $595,000 | $425,000 |
| Principal and interest | $7,538 | $8,698 |
| Taxes and insurance | $1,650 | $1,650 |
| Total monthly payment | $9,188 | $10,348 |
| DSCR at $9,300 rent | About 1.01x | About 0.90x |
Inside the city, more large-balance rentals have two or more rent streams. Seattle allows attached and detached accessory dwelling units on many residential lots, and Washington's 2023 middle housing law opened more lots to duplexes and other small multi-unit homes. Older neighborhoods also have existing duplexes and triplexes.
For underwriting, every unit you count needs to be permitted and supported by the appraisal. A basement apartment without permits, or a garage converted without approval, usually gets little or no rent credit. Ask the seller for permit records and confirm with the city's permit history.
Newer townhomes are another common Seattle rental. Many were built several to a lot and sold individually, sometimes with a shared driveway agreement or a small HOA. Those shared costs count in the payment, and the lender will want to see any maintenance or HOA agreement. A townhome with no HOA but a recorded shared-use agreement is usually fine; just send the document early.
Seattle has some of the more detailed tenant protections in the state, including just-cause eviction rules, long advance notice for rent increases and relocation assistance in certain situations. Washington also adopted a statewide cap on annual rent increases in 2025 for many residential rentals, with exemptions such as newer buildings.
These rules do not stop a DSCR loan, but they can affect how quickly you can move an occupied unit to market rent. If the plan depends on raising rents after you buy, have a Washington attorney confirm which rules apply.
Short-term rentals in Seattle require a city license, and the rules limit how many units one operator can run, generally favoring owners who live in one of them. Eastside cities set their own rules. For most investor properties, plan on long-term rent.
Washington has no state income tax on wages, which is part of why the region draws high earners and strong renters. Property taxes are set by county assessment and local levies, so use King County's figures for the specific parcel rather than the listing's estimate.
Washington's real estate excise tax is graduated, with higher rates on higher-priced sales. It is customarily paid by the seller, but it affects your exit math when you sell later. Insurance is usually manageable in the city, while homes near wooded hillsides or steep slopes can raise questions about landslide and wildfire exposure.
Many Seattle-area investors bought rentals years ago and now hold significant equity. A cash-out refinance on one property can fund the down payment on the next, which matters when Eastside purchases need a lot of cash to reach a 1.0x ratio.
Cash-out goes up to 75% LTV, often lower on large balances, and the rent must cover the new, larger payment at the program minimum. Seasoning rules vary by program: some allow cash-out soon after purchase, while others want several months of ownership or cap the loan at the purchase price plus documented improvements.
If you own five or more rentals, a blanket portfolio loan can refinance them together in one closing, qualified on the cash flow of the whole portfolio. That can work well when a few strong properties carry one or two that would be tight on their own.
The region's largest employers in tech, aerospace, health care and research bring a steady flow of relocating professionals, many of whom rent before they buy. Corporate relocation packages and 12-month leases are common at higher price ranges.
That demand helps, but the appraiser's market rent is still what counts. The best support is signed leases on similar homes in the same neighborhood, not asking rents on listing sites.
Remote and hybrid work has also changed where some higher earners choose to rent, so demand can shift between in-city neighborhoods and suburban areas with larger homes. Underwrite to the lease you can actually sign today, not to a trend.
Many Seattle-area investor loans fall between $500K and $1M. Common examples include condos in Capitol Hill, South Lake Union and Belltown, townhomes in Ballard, Fremont and West Seattle, and single-family homes in Renton, Kent, Everett, Lynnwood and Shoreline.
Leverage on these balances is often closer to the program maximums of 80% LTV for purchases and 75% for cash-out, and reserve requirements are often lighter than on $1M+ loans, though both vary by program. The 1.0x standard minimum DSCR still applies, and condo HOA dues count in the payment.
Seattle's tenant protections and rental registration still apply at this size, and townhomes on shared lots may have their own maintenance agreements that underwriting will want to see.
On larger balances, some programs require a second appraisal or a more detailed review, and reserve requirements are often higher. Having the file ready helps the timeline.
LendingStreet is an investment property financing company. Our DSCR loans are business-purpose loans on non-owner-occupied property, with a 620 minimum credit score, LLC borrowers allowed, 30-year fixed options and cash-out up to 75% LTV, often lower on large balances.
Send the address, price, rent and the leverage you want. The financing team will run the ratio at a few loan amounts and come back with 2-3 options.
It depends on the rent. The program allows up to 80% LTV, often less on large balances, but many Eastside single-family rentals need more equity than that to reach a 1.0x ratio. In the illustrative example on this page, 65% LTV worked and 75% did not. Run your own numbers in our DSCR calculator.
Often yes, if it is permitted and the appraiser can support its rent. Unpermitted units usually get little or no credit.
Yes. Townhomes qualify like single-family homes on DSCR loans. Any HOA dues or shared maintenance costs count in the payment, so include them when you run the ratio.
No. It can limit how quickly you raise rent on an occupied unit, which may affect the rent the lender uses. Confirm with a Washington attorney how it applies to your property.
Seattle licenses short-term rentals and limits how many units one operator can run. If the property can be licensed, STR DSCR loans can qualify on projected revenue, with rates from 6.49% for qualified borrowers.
Our DSCR programs have no stated maximum. Loans start at $150,000, and larger balances are reviewed and priced case by case.
Yes. Cash-out goes up to 75% LTV, often lower on large balances. The rent must still clear the program minimum at the new, larger payment.
Yes. LLC borrowers are standard on our DSCR programs, and no personal tax returns or W-2s are required.
No. LendingStreet finances non-owner-occupied investment property only.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for Seattle condos and townhomes and for single-family homes in Renton, Kent, Everett and Shoreline.
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