Longleaf Lending Arkansas DSCR Loans

DSCR Loans in Arkansas:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Arkansas DSCR Loan Needs

Crafted with savvy Arkansas 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 Arkansas 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 Arkansas, 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 Arkansas 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 Arkansas Requirements

Securing a DSCR Loan in Arkansas 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 Arkansas:

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 Arkansas requirements

Designed for Arkansas investors

Build wealth through real estate with our DSCR Loans in Arkansas

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

Arkansas long term rental property loans

Arkansas's real estate market offers a mix of affordability, steady economic growth, and a high quality of life, making it an appealing option for real estate investors. The state's diverse landscapes, from the bustling streets of Little Rock and Fayetteville to the tranquil Ozark and Ouachita Mountains, provide a variety of investment opportunities. DSCR loans in Arkansas present a strategic financing solution for investors looking to capitalize on the state's stable and growing real estate market.

Why DSCR Loans Are Ideal for Arkansas's Real Estate Market

DSCR loans are particularly well-suited for the Arkansas market for several reasons:
  • Economic Stability: Arkansas's economy, with its strong agricultural base, expanding manufacturing sector, and emerging tech scene, provides a solid foundation for real estate investments.
  • Consistent Rental Demand: The presence of major universities, hospitals, and corporate headquarters, such as Walmart in Bentonville, creates a steady demand for rental properties across the state.
  • Simplified Financing Process: By focusing on the rental income potential of the property rather than the personal financial history of the investor, DSCR loans simplify the financing process, enabling quicker acquisitions and portfolio expansion.

Strategic Advantages of SFR Investments in Arkansas

Investing in Single-Family Residential (SFR) properties in Arkansas offers significant benefits:
  • Diverse Tenant Base: The state's economic and educational institutions attract a wide array of tenants, including students, professionals, and families, ensuring a consistent demand for rental homes.
  • Affordable Entry Points: Arkansas's real estate market is known for its affordability, allowing investors to enter the market at a lower cost and potentially secure higher yields on their investments.

Maximizing Returns with Arkansas DSCR Loans

DSCR loans in Arkansas empower investors to maximize their real estate investments through:
  • Portfolio Diversification: The flexibility of DSCR loans supports the acquisition of properties across Arkansas's urban and rural areas, enabling investors to diversify their portfolio and spread risk.
  • Efficient Market Entry: The streamlined approval process associated with DSCR loans allows for rapid market entry, helping investors to quickly take advantage of emerging opportunities.
Arkansas's real estate market, with its combination of economic stability, diverse landscapes, and investment opportunities, offers a promising environment for investors. DSCR loans provide the necessary financial flexibility to navigate this market effectively, facilitating the acquisition of properties that can generate stable rental income and appreciate in value over time. Whether targeting the dynamic urban centers or the scenic rural settings, DSCR loans in Arkansas offer a solid foundation for achieving real estate investment success.

Arkansas DSCR Loan frequently asked questions

How is DSCR Calculated in Arkansas?

How is DSCR calculated in Arkansas?

In Arkansas, 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 Arkansas?

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.

Submit your Arkansas loan request today

Start your DSCR Loan funding today

Ready to propel your Arkansas 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 Arkansas DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.