Longleaf Lending Austin Texas DSCR Loans

DSCR Loans in Austin Texas:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Austin Texas DSCR Loan Needs

Crafted with savvy Austin Texas 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 Austin Texas 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 Austin Texas, 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 Austin Texas 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 Austin Texas Requirements

Securing a DSCR Loan in Austin Texas 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 Austin Texas:

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 Austin Texas requirements

Designed for Austin Texas investors

Build wealth through real estate with our DSCR Loans in Austin Texas

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

Austin Texas long term rental property loans

Austin, Texas, celebrated for its vibrant culture, booming tech scene, and rapid growth, is an attractive destination for real estate investors. Known as the "Live Music Capital of the World," Austin offers a unique mix of entertainment, technology, and innovation, making it a magnet for young professionals, creatives, and tech entrepreneurs.

This dynamic environment, combined with a strong job market and a high quality of life, contributes to Austin's status as one of the fastest-growing cities in the United States.

Why DSCR Loans Are Perfect for Austin's Real Estate Market

  • Tech Industry Expansion: Austin's growing reputation as a tech hub increases the demand for both residential and commercial real estate, attracting workers and companies alike.
  • Cultural and Lifestyle Appeal: The city's diverse cultural scene and outdoor lifestyle options enhance its attractiveness, supporting a strong rental market.
  • Population and Economic Growth: With one of the nation's highest rates of population and economic growth, Austin presents ongoing opportunities for real estate investment and development.

Strategic Advantages of Investing in Austin

  • Diverse Rental Market: Austin's eclectic mix of students, tech professionals, and artists creates a varied rental market, with high demand for a range of housing options.
  • Property Value Appreciation: The city's continuous growth and development lead to appreciating property values, offering lucrative opportunities for long-term investments.
  • Innovation and Entrepreneurship: Austin's environment of innovation and entrepreneurship fosters a dynamic real estate market, ripe for creative and forward-thinking investment strategies.

Leveraging Austin's Real Estate Market with DSCR Loans

DSCR loans in Austin provide investors with the flexibility to tap into the city's flourishing market through.
  • Portfolio Diversification: The diverse Austin market allows for investments in various property types and locations, catering to different demographics and preferences.
  • Efficient Market Entry and Expansion: The streamlined approval process of DSCR loans is especially beneficial in Austin's competitive real estate environment, enabling swift action on investment opportunities.
Austin's blend of technological innovation, cultural richness, and steady growth offers a promising landscape for real estate investors. DSCR loans in Austin afford strategic financing solutions that resonate with the objectives of today's real estate investors, whether focusing on residential properties in burgeoning neighborhoods or commercial ventures in the city's tech corridors.

With its unique combination of factors driving demand, Austin stands as a key market for achieving real estate investment success in Texas.

Austin Texas DSCR Loan frequently asked questions

How is DSCR Calculated in Austin Texas?

How is DSCR calculated in Austin Texas?

In Austin Texas, 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 Austin Texas?

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 Austin Texas loan request today

Start your DSCR Loan funding today

Ready to propel your Austin Texas 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 Austin Texas DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.