Longleaf Lending Philadelphia Pennsylvania DSCR Loans

DSCR Loans in Philadelphia Pennsylvania:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Philadelphia Pennsylvania DSCR Loan Needs

Crafted with savvy Philadelphia Pennsylvania 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 Philadelphia Pennsylvania 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 Philadelphia Pennsylvania, 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 Philadelphia Pennsylvania using our DSCR long-term 30-year investor loans.

Terms current as of July 14, 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:
620 minimum

DSCR Loan Requirements Simplified

Understand DSCR Loan Philadelphia Pennsylvania Requirements

Securing a DSCR Loan in Philadelphia Pennsylvania 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 Philadelphia Pennsylvania:

DSCR Calculation:
Minimum of 0.65x
Credit Score:
620 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 Philadelphia Pennsylvania requirements

Designed for Philadelphia Pennsylvania investors

Build wealth through real estate with our DSCR Loans in Philadelphia Pennsylvania

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

Philadelphia Pennsylvania long term rental property loans

Philadelphia, the city of brotherly love, is rich in American history and modern vibrancy. As one of the oldest cities in the United States, it offers a unique mix of historic sites, cultural landmarks, and a steadily growing economy. This blend of old and new makes Philadelphia an intriguing market for real estate investors.

With a diverse economy rooted in healthcare, education, technology, and financial services, Philadelphia attracts a wide range of residents and businesses. The city's affordability, when compared to other East Coast metropolitan areas, along with its historic and cultural appeal, positions it as an attractive option for investors looking to tap into the residential and commercial real estate markets.

Why DSCR Loans Are Perfect for Philadelphia's Real Estate Market

  • Economic and Demographic Diversity: Philadelphia's economy and population are diverse, supporting a steady demand for both residential and commercial real estate.
  • Affordability and Growth Potential: Compared to neighboring East Coast cities, Philadelphia offers more affordable investment opportunities, with significant potential for growth and appreciation.
  • Simplified Financing with DSCR Loans: The flexibility and efficiency of DSCR loans align well with Philadelphia's market dynamics, offering investors a streamlined path to financing.

Strategic Advantages of Investing in Philadelphia

  • Robust Rental Market: The city's mix of students, professionals, and families creates a strong demand for rental properties, from downtown apartments to suburban homes.
  • Historic and New Development Blends: The opportunity to invest in both historic properties and new developments offers diverse portfolio options and the potential for unique value propositions.
  • Economic Stability: With a foundation in sectors like healthcare and education, Philadelphia's economy offers stability to real estate investors, even in fluctuating markets.

Leveraging Philadelphia's Real Estate Market with DSCR Loans

DSCR loans in Philadelphia empower investors to capitalize on the city's unique characteristics by:
  • Diverse Investment Options: Philadelphia's real estate market includes a wide range of investment opportunities, from historic row homes to modern condos and commercial spaces.
  • Efficient Market Entry and Expansion: The streamlined approval process for DSCR loans is especially advantageous in Philadelphia, enabling quick and efficient market entry or portfolio expansion.
Philadelphia's real estate market, with its historical depth, cultural richness, and economic diversity, presents a compelling landscape for investors. DSCR loans in Philadelphia provide the strategic financing needed to effectively navigate this market, offering a customized approach that aligns with the goals of today's real estate investors.

Whether focusing on revitalizing historic neighborhoods or investing in burgeoning areas, DSCR loans in Philadelphia offer a solid foundation for achieving real estate investment success in one of America's most storied cities.

Philadelphia Pennsylvania DSCR Loan frequently asked questions

How is DSCR Calculated in Philadelphia Pennsylvania?

How is DSCR calculated in Philadelphia Pennsylvania?

In Philadelphia Pennsylvania, 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 Philadelphia Pennsylvania?

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 Pennsylvania DSCR markets

Submit your Philadelphia Pennsylvania loan request today

Start your DSCR Loan funding today

Ready to propel your Philadelphia Pennsylvania 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 Philadelphia Pennsylvania DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.