Longleaf Lending North Carolina DSCR Loans

DSCR Loans in North Carolina:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your North Carolina DSCR Loan Needs

Crafted with savvy North Carolina 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 North Carolina 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 North Carolina, 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 North Carolina 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 North Carolina Requirements

Securing a DSCR Loan in North Carolina 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 North Carolina:

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 North Carolina requirements

Designed for North Carolina investors

Build wealth through real estate with our DSCR Loans in North Carolina

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

North Carolina long term rental property loans

North Carolina's real estate market is increasingly attractive to investors, thanks to its blend of rapid urbanization, flourishing suburban communities, and untouched rural landscapes. The state's economic diversity, from the tech-driven Research Triangle to the financial hub of Charlotte, drives a robust demand for Single-Family Residential (SFR) properties. With its scenic beauty, moderate climate, and strong job growth, North Carolina presents a compelling case for real estate investment, offering both high rental yields and potential for significant property appreciation.

DSCR Loans in North Carolina: Financing Growth and Diversity

DSCR Loans in North Carolina are tailored to support the state's dynamic real estate investment opportunities. These loans stand out for their ability to adapt to various market needs, making them an excellent choice for investors due to:
  • Market Versatility: Whether you're drawn to the vibrant city life of Raleigh and Charlotte or the peaceful retreats in the Appalachians, DSCR loans provide the necessary flexibility to invest across North Carolina's diverse real estate landscape.
  • Income-Based Financing: In a state with consistent rental demand, DSCR loans prioritize the income potential of properties. This focus is particularly beneficial for investors looking to capitalize on North Carolina's growing rental market without the constraints of traditional lending criteria.
  • Efficient Investment Process: The streamlined approach of DSCR loans, which bypasses personal income verification, accelerates property acquisition and portfolio expansion, enabling investors to quickly respond to market opportunities.

Strategic Investment in North Carolina's SFR Market

North Carolina's SFR market is ripe with opportunity. The state's demographic trends, including a growing population and an influx of professionals seeking quality living spaces, create a favorable environment for SFR investments. DSCR loans facilitate entry into this market, offering investors a path to leverage high occupancy rates and appreciation potential, essential for long-term wealth building.

Leveraging DSCR Loans for Real Estate Success in North Carolina

Investors eyeing North Carolina's vibrant market will find DSCR loans to be a valuable asset. These loans not only ease the financing hurdle but also empower investors to make the most of the state's real estate potential. From acquiring sought-after properties in growing areas to diversifying investment portfolios across different regions, DSCR loans provide the foundation for successful real estate ventures in North Carolina.

North Carolina's real estate market, characterized by its diversity and growth potential, offers a fertile ground for investors. Utilizing DSCR loans, investors can navigate this market with greater flexibility and efficiency, unlocking the full potential of their real estate investments and setting the stage for significant financial growth.

North Carolina DSCR Loan frequently asked questions

How is DSCR Calculated in North Carolina?

How is DSCR calculated in North Carolina?

In North Carolina, 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 North Carolina?

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 North Carolina loan request today

Start your DSCR Loan funding today

Ready to propel your North Carolina 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 North Carolina DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.