Longleaf Lending Rhode Island DSCR Loans

DSCR Loans in Rhode Island:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Rhode Island DSCR Loan Needs

Crafted with savvy Rhode Island 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 Rhode Island 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 Rhode Island, 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 Rhode Island using our DSCR long-term 30-year investor loans.

Terms current as of July 22, 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 Rhode Island Requirements

Securing a DSCR Loan in Rhode Island 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 Rhode Island:

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 Rhode Island requirements

Designed for Rhode Island investors

Build wealth through real estate with our DSCR Loans in Rhode Island

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

Rhode Island long term rental property loans

Rhode Island's real estate market, though compact in size, offers a vibrant blend of urban living, coastal charm, and historic properties. As the smallest state in the U.S., Rhode Island boasts a unique appeal with its rich history, bustling cities like Providence, and picturesque coastal towns such as Newport and Narragansett. The state's economy, anchored by healthcare, education, and tourism, along with its proximity to major metropolitan areas like Boston and New York City, makes it an attractive market for real estate investment. DSCR loans in Rhode Island provide a strategic financing solution for investors looking to tap into the state's diverse and appealing real estate opportunities.

Why DSCR Loans Are Suitable for Rhode Island's Real Estate Market

DSCR loans are particularly advantageous in Rhode Island for several reasons:
  • High Demand for Rentals: Rhode Island's robust tourism industry, coupled with a strong student population from its numerous universities and colleges, drives a consistent demand for rental properties.
  • Desirable Coastal Market: The state's extensive coastline offers prime real estate for vacation rentals and luxury properties, attracting both seasonal visitors and affluent buyers.
  • Simplified Financing Process: By focusing on the rental income potential of the property rather than the investor's personal financial history, DSCR loans streamline the financing process, enabling quicker acquisitions and portfolio growth.

Strategic Advantages of SFR Investments in Rhode Island

Investing in Single-Family Residential (SFR) properties in Rhode Island offers key advantages:
  • Diverse Investment Opportunities: From urban apartments in Providence to beachfront homes in coastal communities, Rhode Island's real estate market supports a range of investment strategies.
  • Strong Potential for Appreciation: Given the state's limited land area and the high demand for properties, especially in coastal regions, Rhode Island presents significant opportunities for property value appreciation.

Maximizing Returns with Rhode Island DSCR Loans

DSCR loans in Rhode Island enable investors to maximize their investment potential through:
  • Portfolio Diversification: The ability to finance various types of properties across Rhode Island’s markets allows investors to build a diversified portfolio, reducing risk and maximizing potential returns.
  • Efficient Market Entry and Expansion: The efficient approval process for DSCR loans facilitates rapid market entry and expansion, helping investors to quickly capitalize on emerging opportunities.
Rhode Island’s real estate market, with its combination of urban appeal, coastal beauty, and historic significance, offers a compelling landscape for investors. DSCR loans provide the financial agility needed to navigate this market effectively, offering a streamlined path to acquiring properties that can generate stable rental income and appreciate in value over time. Whether targeting the dynamic city of Providence, the luxury market in Newport, or the scenic coastal towns, DSCR loans in Rhode Island offer a solid foundation for achieving real estate investment success in the Ocean State.

Rhode Island DSCR Loan frequently asked questions

How is DSCR Calculated in Rhode Island?

How is DSCR calculated in Rhode Island?

In Rhode Island, 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 Rhode Island?

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 Rhode Island loan request today

Start your DSCR Loan funding today

Ready to propel your Rhode Island 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 Rhode Island DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.