Longleaf Lending Arizona DSCR Loans

DSCR Loans in Arizona:
Modern Financing for Investors

Veteran-owned lender, offering investors DSCR Loans in Arizona for no-income-verification, hassle-free long-term financing.

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Arizona DSCR Loan Needs

Crafted with savvy Arizona investors in mind, our Long-Term DSCR Loans enable wealth building through a diverse portfolio of rental properties. By prioritizing your investment property's rental income and cash flow metrics, we simplify the loan process. As a top DSCR lender, enjoy competitive interest rates starting at 6.5%.

No Income Verification
Our no-income-verification process eliminates traditional barriers, focusing on your investment's cash flow to qualify you for a loan. This DSCR-centered approach ensures a hassle-free experience, catering specifically to real estate investors' unique needs.
Tailored to Investment Goals
Whether you're investing in short-term vacation rentals or long-term leases, our DSCR loans are crafted to align with your strategic investment plans. This versatility ensures that whatever your goals, our financing solutions fit perfectly.
Efficiency and Speed
At Longleaf Lending, we value your time. Our Arizona DSCR loan application and approval processes are optimized for efficiency, ensuring quick, smooth progress from your initial application to the final funding.
Adaptive Financing Solutions
Our financing options are as diverse as the properties you invest in. We're committed to offering flexible DSCR solutions that accommodate a wide range of property types and investor profiles.

Fast and simple

How Longleaf Lending's DSCR Loans Work

DSCR (Debt Service Coverage Ratio) loans are a type of financing used by real estate investors that focus on the income generated by the property rather than the personal income of the borrower. Here’s a simplified explanation:

Calculation.
The DSCR is calculated by dividing the property's Net Operating Income (NOI) by its total annual debt payments. NOI reflects the positive cash flow from the property after operating expenses (mortgage payment, taxes, and insurance) are subtracted.
Criteria for approval.
For Arizona, we typically require a DSCR greater than 1.0, indicating the investment property generates sufficient cash flow to cover its debt obligations. A common threshold is a DSCR of 1.0 to 1.2 or higher, but it is possible to go lower.
No personal income verification.
The approval process emphasizes the property’s cash flow potential, not the borrower's personal financial situation, allowing for more accessible financing for investors.
Craftsman house

DSCR Loan Terms

Get the financing you need to build wealth with real estate in Arizona using our DSCR long-term 30-year investor loans.

Terms current as of April 25, 2024

Long Term Rental Loan
Loan Value:
$75,000-$2,000,000
LTV:
Up to 80% (as is)
Interest Rate:
Starting at 6.5%
Points:
2-3
Term:
30 years
Closing Time:
As fast as 2 weeks
FICO:
600 minimum

DSCR Loan Requirements Simplified

Understand DSCR Loan Arizona Requirements

Securing a DSCR Loan in Arizona involves a focused evaluation of your experience, liquidity, credit score, and investment property's income potential. Here's a summary of the current requirements you should know before applying for a DSCR Loan in Arizona:

DSCR Calculation:
Minimum of 0.65x
Credit Score:
600 minimum
Loan Amount:
$75,000 to $3 million
Investor Experience:
none required
US Citizenship:
not required
Documentation:
Some of the key required documents include personal ID, bank statements, entity documentation if using a company (operating agreement, EIN letter, articles of incorporation), lease agreement (if currently leased), appraisal (requrested by us), and the purchase HUD (if purchased in the last 12 months).
Occupancy:
Short or long-term rentals, vacant or occupied
Property Type:
SFR, 2-4 units, multifamily 5+ units, mixed use, or commercial
DSCR Loan Arizona requirements

Designed for Arizona investors

Build wealth through real estate with our DSCR Loans in Arizona

Arizona's Real Estate Potential: Ideal for 30-Year Rental and Long-Term DSCR Loans

Arizona long term rental property loans

Arizona's dynamic real estate landscape, characterized by its sprawling deserts, vibrant cities, and growing communities, presents a unique opportunity for Single-Family Residential (SFR) property investors. The state's increasing population and diverse economy contribute to a robust demand for rental properties, making it a fertile ground for building wealth through real estate.

Why DSCR Loans Are Ideal for Arizona's Market

DSCR loans cater specifically to the needs of real estate investors by prioritizing the income potential of properties over personal financial history. This approach is particularly beneficial in Arizona for several reasons:
  • Economic Growth and Population Surge: Arizona's economy is on the rise, with sectors like technology and manufacturing attracting people from across the country. This growth fuels a strong rental market, ideal for SFR investments.
  • Investment Versatility: From the bustling streets of Phoenix to the serene landscapes of Sedona, DSCR loans offer the flexibility to invest in a wide range of properties across Arizona.
  • Efficient Financing: The no personal income verification requirement streamlines the financing process, allowing investors to quickly secure the funds they need to capitalize on emerging opportunities.

The Strategic Advantage of SFR Investments in Arizona

Investing in SFR properties in Arizona offers a stable and lucrative path for real estate investors. The state's varied geography and climates cater to a wide audience, from city dwellers to those seeking the tranquility of suburban or rural life. High occupancy rates and the potential for long-term rental income solidify SFR investments as a cornerstone of a successful real estate portfolio in Arizona.

Maximizing Returns with Arizona DSCR Loans

For real estate investors aiming to leverage the potential of Arizona's thriving market, DSCR loans provide a straightforward and effective financing solution. These loans facilitate the acquisition of valuable properties and the expansion of investment portfolios, enabling investors to achieve their financial goals in one of the most promising real estate markets in the Southwest.

By focusing on the cash flow generated by the property rather than the investor's personal financial situation, DSCR loans in Arizona offer a unique advantage. They not only simplify the investment process but also open doors to opportunities that might otherwise be inaccessible due to traditional financing barriers.

Explore the Potential of DSCR Loans in Arizona

Arizona's real estate market is ripe with opportunities for savvy investors. With DSCR loans, you can tap into the state's potential and embark on a journey of strategic investment and wealth building. Whether you're looking to invest in urban apartments, suburban homes, or rural retreats, DSCR loans in Arizona provide the flexibility, efficiency, and financial leverage needed to succeed.

Arizona DSCR Loan frequently asked questions

How is DSCR Calculated in Arizona?

How is DSCR calculated in Arizona?

In Arizona, the Debt Service Coverage Ration (DSCR) is calculated by dividing a property's rental income by it's expenses. In some cases another method could be used which involves dividing Net Operating Income (NOI) by the Debt Service.

Income: For simplicty purposes, you can think about the top line as the annual rental income for your investment property. In some cases a 90% factor might be applied.

Expenses: There are four main components of the expenses.

  • Principal and Interest
  • Taxes
  • Insurance
  • HOA fees

Here's an example so you can see exactly how DSCR is calculated. To keep things easy, we are assuming there is no principal payment, which you might expect with an interest only period. To learn more about how DSCR loans work, check out our detailed article.

How is DSCR calculated in Arizona?

About the Longleaf Lending Team

Longleaf Lending is a veteran-owned, direct lending firm with a deep focus on the real estate market. Established in Texas, we bring over two decades of combined experience in real estate, hard money lending, and investment banking.

Funding Experience

Since 2018, we have funded over 600 hard money loans, totaling more than $125 million in loan value.

Expert Leadership

Our leadership includes co-founders Pete Underwood and Matt Weidert, who bring extensive experience from real estate investment, investment banking, and military service.

Commitment to Innovation

We are committed to providing innovative real estate solutions, with a strong focus on integrity and professionalism as a member of the American Association of Private Lenders.

For more about our journey and the dedicated team behind Longleaf Lending, visit our full About Us page.

Explore other Arizona DSCR markets

Submit your Arizona loan request today

Start your DSCR Loan funding today

Ready to propel your Arizona rental project forward? Our simple loan request process is designed to get you the funding you need quickly and efficiently.

How the DSCR funding process works with Longleaf Lending

Submit our Online Form

Begin by filling out our short form. It's straightforward and only takes a minute. Provide us with some basic information about you and your project.

Get a Term Sheet in less than 24 Hours

After submitting your form, you'll receive a detailed term sheet from us within 24 hours. This term sheet will outline the terms of your loan and give you the confidence to proceed with your project.

Get Funded

Experience fast and straightforward funding. At Longleaf Lending, you'll work directly with our team throughout the entire process, from application to funding.

Applying does not affect your credit score

Apply for a Arizona DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.