Longleaf Lending Chicago Illinois DSCR Loans

DSCR Loans in Chicago Illinois:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Chicago Illinois DSCR Loan Needs

Crafted with savvy Chicago Illinois 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 6.6%.

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 Chicago Illinois 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 Chicago Illinois, 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 Chicago Illinois using our DSCR long-term 30-year investor loans.

Terms current as of December 07, 2024

Long Term Rental Loan
Loan Value:
$75,000-$2,000,000
LTV:
Up to 80% (as is)
Interest Rate:
Starting at 6.6%
Points:
1-3
Term:
30 years
Closing Time:
As fast as 2 weeks
FICO:
660 minimum

Hundreds of investors trust our Rental Loan Calculator to assess their investments

Use our DSCR Loan Calculator to accurately evaluate the financial health of your rental property. Get a personalized term sheet instantly, and join the ranks of savvy investors making smarter financial decisions.

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Calculate your loan terms, below, instantly!

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DSCR Loan Requirements Simplified

Understand DSCR Loan Chicago Illinois Requirements

Securing a DSCR Loan in Chicago Illinois 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 Chicago Illinois:

DSCR Calculation:
Minimum of 0.65x
Credit Score:
660 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 Chicago Illinois requirements

Designed for Chicago Illinois investors

Build wealth through real estate with our DSCR Loans in Chicago Illinois

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

Chicago Illinois long term rental property loans

Chicago, renowned for its striking skyline, rich history, and vibrant neighborhoods, offers a wealth of opportunities for real estate investors. As the third-largest city in the United States, Chicago combines a strong economic foundation with a diverse cultural scene, making it a compelling location for investment in residential and commercial properties.

The city's economy is robust, anchored by sectors such as finance, technology, manufacturing, and transportation. Chicago's status as a transportation and logistics hub, coupled with its diverse population and educational institutions, fuels a dynamic real estate market with a steady demand for rental and commercial spaces.

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

  • Economic Strength and Diversity: Chicago's diversified economy supports a resilient real estate market, suitable for a variety of investment strategies.
  • High Demand for Rentals: With a significant population of professionals, students, and families, there's a consistent demand for rental properties across the city.
  • Simplified Financing with DSCR Loans: The efficiency and flexibility of DSCR loans match perfectly with Chicago's fast-paced real estate environment, enabling investors to navigate the market with ease.

Strategic Benefits of Investing in Chicago Properties

  • Investment Versatility: Chicago's real estate market offers a range of investment opportunities, from high-rise apartments in the Loop to historic homes in its many neighborhoods.
  • Economic Resilience: The city's economy has shown strength and resilience through various economic cycles, supporting long-term real estate investment stability.
  • Cultural and Architectural Richness: Chicago's rich architectural heritage and cultural depth add unique value to properties, enhancing their appeal to renters and buyers.

Leveraging Chicago's Market with DSCR Loans

DSCR loans in Chicago empower investors to fully leverage the city’s diverse real estate opportunities by:
  • Diverse Portfolio Building: Chicago’s varied neighborhoods and property types enable investors to build a diversified and resilient investment portfolio.
  • Rapid Market Access and Growth: The streamlined approval process of DSCR loans is a boon for investors looking to quickly enter or expand within Chicago’s competitive real estate market.
Chicago's real estate landscape, marked by its economic vibrancy, diverse population, and architectural beauty, presents a fertile ground for investors. DSCR loans offer the strategic financing needed to effectively tap into this market, providing a tailored approach that aligns with the goals of modern real estate investors.

Whether targeting the bustling downtown area, the upscale markets of the North Side, or the emerging neighborhoods on the South and West Sides, DSCR loans in Chicago provide a solid foundation for achieving real estate investment success in this illustrious Midwestern city.

Chicago Illinois DSCR Loan frequently asked questions

How is DSCR Calculated in Chicago Illinois?

How is DSCR calculated in Chicago Illinois?

In Chicago Illinois, 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 Chicago Illinois?

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 Illinois DSCR markets

Submit your Chicago Illinois loan request today

Start your DSCR Loan funding today

Ready to propel your Chicago Illinois 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 Chicago Illinois DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.