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DSCR loans: What is it and how it works?
Learn all about DSCR loans, what is it, and how real estate investors can benefit from it.
Veteran-owned lender, offering investors DSCR Loans in Lexington Kentucky for no-income-verification, hassle-free long-term financing.
Modern, long-term financing solutions
Crafted with savvy Lexington Kentucky 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%.
Fast and simple
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:
Get the financing you need to build wealth with real estate in Lexington Kentucky using our DSCR long-term 30-year investor loans.
Terms current as of September 08, 2024
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DSCR Loan Requirements Simplified
Securing a DSCR Loan in Lexington Kentucky 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 Lexington Kentucky:
Designed for Lexington Kentucky investors
Lexington Kentucky's Real Estate Potential: Ideal for 30-Year Rental and Long-Term DSCR Loans
In Lexington Kentucky, 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.
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.
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.
Since 2018, we have funded over 600 hard money loans, totaling more than $125 million in loan value.
Our leadership includes co-founders Pete Underwood and Matt Weidert, who bring extensive experience from real estate investment, investment banking, and military service.
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.
Market trends, case studies, investment strategies, and success stories.
Learn all about DSCR loans, what is it, and how real estate investors can benefit from it.
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Useful tips for renting out your investment property whether for long-term or short-term rental. Check it out here.
Ready to propel your Lexington Kentucky rental project forward? Our simple loan request process is designed to get you the funding you need quickly and efficiently.
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.
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.
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
Begin the funding process by completing our short online form.