Longleaf Lending Maryland DSCR Loans

DSCR Loans in Maryland:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Maryland DSCR Loan Needs

Crafted with savvy Maryland 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 Maryland 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 Maryland, 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 Maryland 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 Maryland Requirements

Securing a DSCR Loan in Maryland 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 Maryland:

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 Maryland requirements

Designed for Maryland investors

Build wealth through real estate with our DSCR Loans in Maryland

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

Maryland long term rental property loans

Maryland's real estate market offers an attractive landscape for investors, thanks to its diverse economy, strategic location near major cities, and a wide range of property types. From bustling urban areas in Baltimore to serene waterfront properties along the Chesapeake Bay, Maryland presents a variety of investment opportunities. DSCR loans in Maryland provide a flexible financing solution, enabling investors to leverage these opportunities to their advantage.

Why DSCR Loans Are a Smart Choice for Maryland's Market

DSCR loans cater to the unique dynamics of Maryland's real estate market by offering several key benefits:
  • Economic Diversity: Maryland's economy is bolstered by sectors like biotechnology, healthcare, and government, creating a stable environment for real estate investments.
  • High Property Values: The state's high property values make it an ideal market for DSCR loans, which focus on the income-producing potential of properties rather than the personal financial history of investors.
  • Streamlined Process: By eliminating traditional income verification, DSCR loans expedite the financing process, allowing investors to quickly take advantage of market opportunities.

Strategic Advantages of SFR Investments in Maryland

The demand for Single-Family Residential (SFR) properties in Maryland is driven by its growing population and the desire for space, particularly in suburban and rural areas. This trend offers significant advantages for investors:
  • Stable Rental Demand: Maryland's diverse and growing economy contributes to a steady demand for rental properties, ensuring consistent income for investors.
  • Long-Term Growth Potential: The state's property values have shown resilience and growth over time, providing opportunities for capital appreciation in addition to rental income.

Leveraging Maryland DSCR Loans for Maximum Return

DSCR loans in Maryland allow investors to tap into the state's lucrative real estate market with less red tape and more flexibility. This financing option supports a range of investment strategies, from acquiring new properties to refinancing existing ones for better terms.

By focusing on the income potential of the property, DSCR loans in Maryland offer a practical path for investors to expand their portfolios and achieve their financial goals in one of the most dynamic real estate markets in the country.

Maryland DSCR Loan frequently asked questions

How is DSCR Calculated in Maryland?

How is DSCR calculated in Maryland?

In Maryland, 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 Maryland?

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 Maryland DSCR markets

Submit your Maryland loan request today

Start your DSCR Loan funding today

Ready to propel your Maryland 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 Maryland DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.