Longleaf Lending Minnesota DSCR Loans

DSCR Loans in Minnesota:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Minnesota DSCR Loan Needs

Crafted with savvy Minnesota 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 Minnesota 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 Minnesota, 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 Minnesota 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 Minnesota Requirements

Securing a DSCR Loan in Minnesota 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 Minnesota:

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 Minnesota requirements

Designed for Minnesota investors

Build wealth through real estate with our DSCR Loans in Minnesota

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

Minnesota long term rental property loans

Minnesota's real estate market is a blend of vibrant urban centers, serene lakeside communities, and expansive agricultural lands, offering a diverse array of investment opportunities. The state's strong economic foundations in healthcare, education, and manufacturing, coupled with its quality of life, drive a steady demand for rental properties. DSCR loans in Minnesota provide a strategic financing solution for investors aiming to tap into this promising market.

Why DSCR Loans Are Ideal for Minnesota's Market

DSCR loans are particularly well-suited to the Minnesota real estate landscape for a few key reasons:
  • Economic Stability: Minnesota's diversified economy creates a stable environment for real estate investments, with less volatility compared to markets heavily reliant on a single industry.
  • High Rental Demand: The state's growing population, including a significant influx of students and professionals, ensures a consistent demand for rental properties, particularly in urban areas like Minneapolis-St. Paul and college towns.
  • Simplified Financing Process: By bypassing traditional income verification processes and focusing on the property's income potential, DSCR loans streamline the path to investment, enabling quicker acquisitions and portfolio growth.

Strategic Advantages of SFR Investments in Minnesota

The strategic advantages of investing in Single-Family Residential (SFR) properties in Minnesota include:
  • Diverse Tenant Base: From students and young professionals to families, Minnesota's demographic diversity offers a broad tenant base for SFR properties, contributing to high occupancy rates.
  • Growth and Appreciation Potential: Minnesota's real estate market has historically shown resilience and steady growth, suggesting potential for both short-term rental income and long-term capital appreciation.

Leveraging Minnesota DSCR Loans for Real Estate Success

DSCR loans in Minnesota empower real estate investors to leverage the state's investment potential effectively:
  • Portfolio Diversification: The flexibility of DSCR loans supports the acquisition of a range of property types across Minnesota's urban and rural areas, enabling investors to diversify their portfolios and mitigate risk.
  • Efficient Market Entry and Expansion: The efficiency of the DSCR loan process allows investors to quickly enter the market or expand their existing portfolio, capitalizing on opportunities as they arise.
Minnesota's real estate market, with its mix of urban and natural beauty, economic stability, and diverse communities, offers fertile ground for investors. DSCR loans provide the necessary financial tools to navigate this landscape successfully, offering a streamlined approach to financing that aligns with the goals and timelines of today's real estate investors. Whether targeting the bustling Twin Cities, the peaceful North Shore, or the agricultural heartlands, DSCR loans offer a path to achieving investment success in Minnesota.

Minnesota DSCR Loan frequently asked questions

How is DSCR Calculated in Minnesota?

How is DSCR calculated in Minnesota?

In Minnesota, 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 Minnesota?

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 Minnesota DSCR markets

Submit your Minnesota loan request today

Start your DSCR Loan funding today

Ready to propel your Minnesota 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 Minnesota DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.