Longleaf Lending Washington DC DSCR Loans

DSCR Loans in Washington DC:
Modern Financing for Investors

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

Modern, long-term financing solutions

Why Choose Longleaf Lending for Your Washington DC DSCR Loan Needs

Crafted with savvy Washington DC 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 Washington DC 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 Washington DC, 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 Washington DC 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 Washington DC Requirements

Securing a DSCR Loan in Washington DC 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 Washington DC:

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 Washington DC requirements

Designed for Washington DC investors

Build wealth through real estate with our DSCR Loans in Washington DC

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

Washington DC long term rental property loans

Washington, D.C., renowned as the epicenter of political power and cultural importance, also presents a thriving real estate landscape ripe with investment opportunities. From the historic neighborhoods of Capitol Hill to the vibrant urban corridors of Dupont Circle, Washington, D.C. offers a diverse array of real estate ventures. DSCR (Debt Service Coverage Ratio) loans emerge as the strategic financial solution for investors seeking to capitalize on Washington, D.C.'s real estate potential.

Why DSCR Loans Hold the Key to Success in Washington, D.C. Real Estate

  1. Economic Resilience: Washington, D.C.'s economy is anchored by a robust mix of government, technology, and professional services sectors. This economic resilience translates into a steady demand for rental properties, providing investors with a stable income stream and long-term growth potential.
  2. Prime Location: Situated along the picturesque Potomac River, Washington, D.C. boasts a prime location in the heart of the Mid-Atlantic region. Its status as the nation's capital and a global diplomatic center ensures a constant influx of professionals and tourists, driving demand for rental accommodations.
  3. Competitive Real Estate Market: Washington, D.C.'s real estate market is characterized by high demand and limited inventory, making it highly competitive for investors. DSCR loans offer investors the financial leverage needed to navigate this landscape, enabling them to seize lucrative opportunities and optimize their returns.

Advantages of DSCR Loans for Washington, D.C. Investors

  1. Enhanced Financial Flexibility: DSCR loans provide investors with flexible financing options tailored to their investment objectives. By evaluating a property's income potential, rather than solely relying on personal financial history, DSCR loans empower investors to amplify their buying power and acquire properties that align with their investment strategies.
  2. Risk Mitigation: Washington, D.C.'s real estate market, like any other, is subject to fluctuations. DSCR loans mitigate risk by ensuring that properties generate sufficient income to cover debt obligations, safeguarding investors against market volatility and enhancing the resilience of their portfolios.
  3. Portfolio Diversification: With DSCR loans, investors can diversify their portfolios across Washington, D.C.'s diverse neighborhoods and property types. This diversification strategy minimizes risk exposure and maximizes long-term returns, ensuring sustained growth and stability.

Unlocking Washington, D.C.'s Real Estate Potential with DSCR Loans

Whether you're drawn to the historic charm of Georgetown or the cosmopolitan energy of Downtown, Washington, D.C. offers a wealth of investment opportunities waiting to be tapped. DSCR loans serve as the catalyst for unlocking these opportunities, providing investors with the financial tools and flexibility needed to thrive in one of the nation's most dynamic real estate 

Washington DC DSCR Loan frequently asked questions

How is DSCR Calculated in Washington DC?

How is DSCR calculated in Washington DC?

In Washington DC, 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 Washington DC?

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 Washington DSCR markets

Submit your Washington DC loan request today

Start your DSCR Loan funding today

Ready to propel your Washington DC 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 Washington DC DSCR Loan in 60 Seconds

Begin the funding process by completing our short online form.