In Seattle and on the Eastside, plenty of ordinary family homes are priced above $1 million. Getting a rental there to qualify on its own income usually takes a second rent, more equity or both.
In short: Yes. LendingStreet finances $1M+ Washington rentals with DSCR loans that qualify on the property's rent instead of your personal income. Loans start at $150,000 with no stated maximum, and larger balances are reviewed and priced case by case. In the Seattle area, adding or buying a home with a permitted ADU or DADU is one of the most practical ways to clear the 1.0x standard minimum on a seven-figure property. Washington's tenant rules, Seattle's short-term rental limits and the graduated excise tax on higher-priced sales are worth checking early.
Most large-balance DSCR requests in Washington come from King County. In Seattle, neighborhoods like Queen Anne, Magnolia, Capitol Hill, Ballard, Fremont, Wallingford and West Seattle have single-family homes, townhomes and small multifamily properties that cross $1 million. Many of them rent to professionals who work for the region's large tech and health employers.
Across Lake Washington, Bellevue, Kirkland, Redmond, Mercer Island and Sammamish have executive single-family homes that often rent to relocating families. Further out, high-value vacation homes in the San Juan Islands, around Lake Chelan, in Leavenworth and near the ski areas along the Cascades attract buyers who want seasonal rental income where local rules allow it.
Spokane, Tacoma and Vancouver have active rental markets too, but fewer properties there reach $1 million. Those deals usually fit our standard DSCR programs.
DSCR compares monthly rent to the full monthly payment, including principal, interest, taxes, insurance and HOA dues. In Seattle, a single house at $1.5 million often rents for well under what the payment would be on a large loan. One rent simply cannot carry that much debt.
Seattle has made it easier to build accessory units, and many lots now have an attached ADU, a basement unit or a detached backyard cottage, often called a DADU. A permitted second unit adds a second rent to the qualifying income. Some lots can hold more than one accessory unit, depending on zoning.
Lenders usually count only permitted units. If the basement apartment was never permitted, expect it to be treated as part of the main house. Gather the permit records and certificate of occupancy before you apply.
This example is illustrative and not a quote. An investor buys a Seattle house with a permitted detached backyard unit for $1,500,000. The main house rents for $5,800 a month and the DADU for $2,800, so combined rent is $8,600. Taxes and insurance are about $1,250 a month.
At 70% LTV, the loan is $1,050,000 and the down payment is $450,000. At a sample rate of 7.125% on a 30-year fixed, principal and interest is about $7,074, and the total payment is about $8,324. With both rents, DSCR is $8,600 divided by $8,324, or about 1.03x. Without the DADU, the main house rent alone would produce a ratio of about 0.70x.
The second unit is what makes this a standard approval. Without it, the investor would need a much larger down payment or a program that accepts a low ratio.
| Item | Main house only | House plus DADU |
|---|---|---|
| Loan amount (70% LTV) | $1,050,000 | $1,050,000 |
| Principal and interest (7.125%, 30-year) | About $7,074 | About $7,074 |
| Taxes and insurance | $1,250 | $1,250 |
| Total monthly payment | About $8,324 | About $8,324 |
| Qualifying rent | $5,800 | $8,600 |
| DSCR | About 0.70x | About 1.03x |
Bellevue, Kirkland, Redmond, Mercer Island and Sammamish are known for large single-family homes in strong school districts. These often rent on long leases to families relocating for work. A signed lease to a qualified tenant helps the appraiser support the rent.
These are one-rent properties, so the down payment does most of the work on the ratio. Newer homes in planned communities may also carry HOA dues, which count in the payment. If the ratio comes in a little short, ask about sub-1.0 programs, which often allow lower leverage.
Rental comparables for large Eastside homes can be limited at the very top of the market. The appraiser may need to reach further for similar rentals, which is one reason some programs ask for a more detailed review on large balances.
A waterfront home in the San Juan Islands or on Lake Chelan, or a mountain house near Leavenworth, can produce strong seasonal income. STR DSCR loans can qualify on projected revenue, with rates starting at 6.49% for qualified borrowers.
Counties and cities in these areas regulate vacation rentals in different ways, and some limit new permits or require minimum stays. San Juan County, Chelan County and the City of Leavenworth have each had their own vacation rental rules. Confirm the property can be legally rented short term before you rely on that income.
Remote properties also raise practical questions: year-round road access, septic and well systems, and insurance in wildfire-prone parts of eastern Washington. Get those answers during your inspection period.
Washington has no state income tax on wages, which helps draw residents and renters, but other costs and rules apply to rental owners. Confirm details with a local attorney or title company.
High-rise condos in downtown Seattle, South Lake Union and Bellevue, and newer townhome developments across Seattle, are common $1M+ rentals. HOA dues go into the payment, and condo projects are reviewed for budget, reserves, insurance, litigation and rental restrictions.
Townhomes built on subdivided lots sometimes have shared-wall or shared-driveway agreements instead of a full HOA. Have those documents ready, since the appraiser and title company will ask about them.
Newer condo buildings sometimes have high owner-occupancy requirements in their rules or a large share of units held by investors. Either can affect how a project is reviewed. Ask the managing agent for the questionnaire early, since associations can take time to respond, and a large loan already has a longer review than a small one.
DSCR rates start at 6.125% for well-qualified borrowers and larger balances are priced case by case. Purchases go up to 80% LTV and cash-out refinances up to 75%, but on large balances the maximum LTV is often lower and reserve requirements higher. Some programs require a second appraisal or a more detailed review.
The minimum credit score is 620, with better pricing at higher scores. No W-2s or tax returns are required, LLC borrowers are allowed and 30-year fixed options are available. The financing team reviews your scenario and comes back with 2-3 options.
If you plan to build a DADU after purchase, tell us. Some investors buy first with a short-term loan, add the unit, then refinance into a DSCR loan once both units are rented.
Outside Seattle's priciest neighborhoods, a lot of Washington rentals finance between $500K and $1M. Examples include single-family homes in Tacoma, Puyallup and Olympia, homes and duplexes in Spokane and Vancouver, condos and townhomes around Seattle and Bellevue, and cabins near Leavenworth, Cle Elum and the Cascade passes.
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. Cabins used as short-term rentals can qualify on projected revenue where county rules allow.
Local rules still apply at this size. Cities and counties set their own rental and short-term rental requirements, so confirm them locally, and wildfire exposure can affect insurance on mountain properties.
These items answer most of the questions a large Washington DSCR file will raise.
Yes. LendingStreet finances investment property in Washington, including Seattle homes with ADUs, Eastside executive rentals, condos and vacation homes above $1 million. Loans start at $150,000 with no stated maximum.
Usually, if it is permitted and the appraisal supports its rent. Unpermitted units are often excluded from qualifying income.
Seattle limits how many STR units one operator can run, which restricts most investor STRs in the city. Long-term rent is usually the safer basis for qualifying a Seattle property.
Possibly, through an STR DSCR program that uses projected revenue, if county or city rules allow short-term rentals at that property. Confirm permits first.
Purchases go up to 80% LTV, but on large balances the maximum is often lower, and a one-rent property may need more equity to clear 1.0x. Test the numbers in the DSCR calculator.
They can affect future rent growth and the rent you rely on for a tenant-occupied property. The lender uses current leases or market rent. Confirm how state and Seattle rules apply with a local attorney.
Washington's real estate excise tax is graduated, so higher-priced sales generally pay a higher rate on the portion above each threshold. It is a tax on the sale, typically paid by the seller, and separate from the loan. Your escrow or title company can confirm how it applies.
Yes. Once the unit is permitted and rented, a DSCR refinance can use both rents. Cash-out goes up to 75% LTV, subject to program seasoning rules.
No. DSCR loans qualify on the property's rent. You need a 620 or higher credit score, reserves and entity documents if borrowing through an LLC.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for Tacoma, Spokane and Vancouver homes, Seattle and Bellevue condos and townhomes, and Cascade cabins.
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