Wisconsin, known as “America’s Dairyland,” has a long-standing reputation for its dairy exports. The state produces over 600 varieties of cheese, accounting for 26% of the country’s total cheese production. You can milk this state for its variety of real estate opportunities!
Beyond its dairy fame, Wisconsin boasts a rich history, friendly communities, and a strong appeal for real estate investors. The state consistently ranks among the best places to live, offering affordable housing well below the national average.
In this guide, we’ll cover everything you need to know about Wisconsin’s real estate market, from investment opportunities to financing options, helping you turn your real estate goals into reality.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
DSCR (debt-service-coverage-ratio) loans offer a straightforward financing solution for foreign nationals interested in income-producing properties in Wisconsin.
Rather than relying on personal income verification, these loans focus on the property’s ability to generate cash flow. DSCR loans cater to foreign investors looking to buy U.S. real estate without planning to live in the property. These loans help non-U.S. residents fulfill the financial and legal requirements that are needed to purchase property in Wisconsin.
DSCR loans provide a potential solution to simplify U.S. real estate investing. Here are some of the key benefits:
Lenders review applications using several key factors. Understanding these can help make the process easier and improve your chances of approval.
Most lenders: U.S. lenders usually focus on income earned in the U.S. because it is easier to work with. If your income comes from another country, there will be several extra steps involved. You will need extra documents, such as translated bank statements, proof of salary, and U.S. tax returns if you have them. Even with all the required paperwork, delays or denials are common because many lenders are unfamiliar with international financial systems.
Waltz: We understand that income can come from many sources from the United States or in your country of origin. That's why we look at a range of documents, including local bank statements, pay slips from your employer, and rental income from properties you own to better evaluate your finances.
Most lenders: Despite the fact that many American buyers pay around 20% in a down payment, many lenders require foreign buyers to pay 30–50% of the property’s price upfront. Some also ask for extra savings to cover possible costs, like repairs or vacant months, which adds to the upfront expenses.
Waltz: We offer more flexible terms. While a 30% down payment is common, qualified buyers may pay as little as 25%. We also adjust reserve fund requirements to match your financial situation and the property’s potential rental income. This can make purchasing in Wisconsin more manageable than paying all-cash.
Most lenders: Most lenders require U.S. identification, such as a passport and visa. For investment properties, you may also need to create a U.S.-based LLC (Limited Liability Company), which involves setting up the LLC and providing its operating agreement.
Waltz: We simplify this step for international buyers. When you work with Waltz, you only need your passport for identification. If you need an LLC, our Investor Toolkit can help you set it up quickly and get an EIN (Employer Identification Number) within minutes.
Most lenders: Lenders in the U.S. rely on U.S.-based credit scores to approve loans. If you do not have a U.S. credit history, it can be very hard to get approved. This is the case even if you have good credit in your home country.
Waltz: Our team understands how hard it can be for foreign nationals to build a U.S. credit score. That’s why we evaluate your credit score in your home country, among other things, so we can fairly assess your financial reliability without penalizing you for not having a U.S. credit score.
Find out how international investors have benefited from working with Waltz.
Wisconsin’s property market offers options suited to a range of investment strategies. Here are some of the most popular types to consider:
Montana’s real estate market offers several advantages for investors looking to generate rental income:
Wisconsin offers several promising cities for real estate investors, each presenting unique opportunities:
Milwaukee is Wisconsin’s largest city, with over half a million residents. Its diverse economy and job opportunities are supported by major employers like Harley-Davidson and Northwestern Mutual, while Marquette University and University of Wisconsin-Milwaukee attract students and professionals alike. Despite its vibrant culture – with year-round festivals, a thriving arts scene, and a historic brewing industry – Milwaukee remains an affordable housing market, with average home prices around $200,000.
Madison, home to the University of Wisconsin’s flagship campus with over 50,000 students, boasts a strong rental market fueled by both education and innovation. The city’s thriving tech industry has drawn interest from major companies like Google and Microsoft, further boosting demand for housing. With a growing population and a reputation as one of the best places to live in the U.S., Madison offers solid investment potential.
Green Bay may be famous for its triumphant NFL team, but the city has a lot to offer foreign investors aside from football. Green Bay has a stable economy anchored by a diverse range of industries, including shipping, manufacturing, healthcare, and tourism. Because the city offers a standard of living that is 8% lower than the national average, young professionals and families looking for lower living costs flock to the area, driving persistent rental demand.
With a growing population and a strong higher education presence, Eau Claire offers excellent opportunities for student housing and long-term rentals. The University of Wisconsin-Eau Claire attracts students, while the city’s vibrant cultural scene appeals to young professionals and creatives. Eau Claire is also known as the hometown of American band Bon Iver, whose influence can be seen in the city’s thriving indie music and arts culture, as well as its expanding events calendar. With a low unemployment rate and a household income on par with the national average, Eau Claire meets many of the standards foreign investors are looking for.
Wisconsin is a unique state, and its quirks mean that there are some specific considerations to keep in mind before you invest here:
Refinancing your Wisconsin investment property involves replacing your existing mortgage with a new one. This process allows you to tap into the equity of your current property to fund new real estate ventures.
Waltz provides comprehensive and efficient solutions tailored to help foreign nationals navigate this process smoothly. With our expertise, we ensure that you can confidently enhance your Wisconsin real estate investment strategy. Here’s what a refinancing process for foreign nationals typically looks like:
Rate-and-term refinancing allows you to modify the terms of your current mortgage – potentially securing more favorable terms on your mortgage. However, it's important to remember that even if you refinance at a lower interest rate, your overall finance charges could be higher throughout the duration of the loan.
Cash-out refinancing allows foreign investors in Wisconsin to access their property’s equity and borrow more than the current mortgage balance, based on the original equity. This type of refinancing can free up extra funds, which you can then use to improve your property, purchase another Wisconsin rental, or consolidate debt.
Getting a DSCR mortgage with Waltz makes owning your next property simpler than you might expect. Just follow these steps:
1. Find a profitable investment
Consider your goals – whether you're aiming for steady rental income, a future flip, or something else – and find a property that fits your budget and ideal outcome.
2. Gather essential documents
Get your important documents together and you’ll enjoy a smoother and faster application process. You'll need a valid passport, proof of income (such as pay stubs or bank statements), and details about the Wisconsin property you're interested in.
3. Select a lender experienced with foreign nationals
Partner with a lender who understands the needs of international buyers, like Waltz. They’ll provide tailored guidance to help you navigate the mortgage process.
4. Set up an LLC and U.S. bank account
For investment properties, you'll need a U.S.-based LLC and a local bank account to handle financial transactions.2 Waltz can simplify this process by setting up both your LLC and EIN on your behalf, taking more tasks off your plate.
5. Submit your loan application
Once you have your documents in order, submit your loan application. Double-check everything to ensure all paperwork is accurate and complete.
6. Perform due diligence
Before finalizing the deal, take the time to inspect the property. Confirm its condition, ensure the value matches the loan, and double-check the terms to make sure everything aligns with your expectations.
7. Complete the purchase process
You’re almost across the finish line! After everything checks out, sign the documents, transfer the funds, and pop the champagne – you’re now a Wisconsin property owner!
