Longleaf Lending Virginia DSCR Loans

DSCR Loans in Virginia:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Virginia DSCR Loan Needs

Crafted with savvy Virginia 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 Virginia 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 Virginia, 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 Virginia 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 Virginia Requirements

Securing a DSCR Loan in Virginia 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 Virginia:

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 Virginia requirements

Designed for Virginia investors

Build wealth through real estate with our DSCR Loans in Virginia

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

Virginia long term rental property loans

Virginia's real estate market offers a compelling mix of historical richness, economic growth, and geographic diversity, making it an attractive destination for real estate investors. With regions like the economically vibrant Northern Virginia, the historical and cultural hubs of Richmond and Williamsburg, and the scenic beauty of the Appalachian Mountains, the state presents varied opportunities for those interested in Single-Family Residential (SFR) properties. The consistent demand for housing, fueled by Virginia's strong job market and quality of life, underscores the potential for solid returns on investment.

DSCR Loans in Virginia: Unlocking Investment Potential

DSCR Loans in Virginia provide a strategic financing solution tailored to the state's unique real estate landscape. These loans are particularly suited for investors because of several key factors:
  • Adaptability Across Diverse Markets: Virginia's real estate market spans bustling urban areas, serene suburban communities, and rural retreats. DSCR loans offer the flexibility to invest across these varied environments, catering to a wide range of investment strategies.
  • Focus on Property Income: Reflecting the state's steady rental demand, DSCR loans assess a property's eligibility based on its income potential rather than the personal financial history of the investor. This approach is ideal for Virginia's market, where rental income stability is a key attraction.
  • Efficient Process for Investors: The streamlined nature of DSCR loans, with no personal income verification required, simplifies the property acquisition process. This efficiency is invaluable in a competitive market like Virginia, enabling investors to swiftly capitalize on opportunities.

Strategic Advantages for SFR Investors in Virginia

The SFR market in Virginia, buoyed by the state's economic stability and demographic growth, offers lucrative avenues for investors. The strategic use of DSCR loans enables investors to leverage high occupancy rates and the appreciation potential of properties, laying a solid foundation for long-term wealth accumulation.

Capitalizing on Virginia’s Real Estate Market with DSCR Loans

For investors eyeing Virginia’s diverse and dynamic real estate market, DSCR loans offer a significant advantage, facilitating quicker access to financing and enabling the acquisition of valuable properties. Whether looking to enter the market for the first time or expand an existing portfolio, DSCR loans provide the necessary financial flexibility and strategic edge to succeed in the Commonwealth of Virginia.

Virginia’s mix of economic vitality, cultural richness, and geographic diversity makes it an ideal state for real estate investment. By leveraging DSCR loans, investors can navigate this varied market with greater ease and efficiency, unlocking the full potential of their real estate investments and achieving long-term financial success.

Virginia DSCR Loan frequently asked questions

How is DSCR Calculated in Virginia?

How is DSCR calculated in Virginia?

In Virginia, 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 Virginia?

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 Virginia DSCR markets

Submit your Virginia loan request today

Start your DSCR Loan funding today

Ready to propel your Virginia 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 Virginia DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.