Connecticut DSCR Loan Lenders for Long-Term and Short-Term Rentals
Are you seeking long-term private financing for a residential rental property in Connecticut? On this page you'll find a list of lenders that offer these “DSCR” loans for single family homes, condos, and 2-4 unit rental properties in Connecticut’s urban areas. Some lenders consider vacation rentals (aka short-term rental or STR). The maximum loan-to-value is 80%. For a purchase, investors need a minimum down payment of 20%, and it could be higher depending on the debt service coverage ratio (DSCR), borrower’s credit score and location. The minimum credit score is 680 for most lenders. The loans terms range from 5 to 30 years.Searching...
Sorry, your search returned no results.
Nationwide Mortgage
Outstanding Service for Investment Property Bridge, Rehab, Rental, and Construction Loans
Connecticut DSCR Loan Interest Rates
According to the loan documents software company, Lightning Docs, the average interest rate for Connecticut DSCR long-term rental loans in the 1st quarter of 2024 was 8.08%. The average loan amount was $358,508. These stats are the average of 51 loans funded for residential rental properties in Connecticut between January 1, 2024 and March 31, 2024 by multiple lenders that use Lightning Docs as their preferred software provider to prepare loan documents.
Funded Long-Term Rental Loans in Connecticut
RCN Capital, a national direct private lender, funded a $193,177 1st lien position long-rental purchase loan for the acquisition of a single-family home in Meriden, CT. We funded 72% of the $267,000 purchase price, while the Borrower contributed 28% cash at closing. The subject property was appraised for $278,000 as-is. It was leased starting on January 1, 2024, for $2,750 monthly and the market rent would be $2,000/month. The loan was structured at a 1.10 DSCR. The Sponsor had good credit and sufficient liquidity. The subject property was in good condition and vacant at closing. It is approximately 1,854 square feet. The interest rate was fixed at 7.86% with amortized payments. We charged 3% origination points. The loan term was set at 30 years. This DSCR long-term rental purchase loan was funded in January 2024.
DSCR Equity Cash Out Loan for Luxury SFR Rental in Greenwich, Connecticut
$1,250,000
RCN Capital, a national direct private lender, funded a $1,250,000 1st lien position equity cash-out DSCR loan secured by a large single-family home in Greenwich, Connecticut. The property’s appraised value was $5,500,000 so our loan-to-value was 23%. The experienced Borrower was looking to cash out on a free-and-clear property with long-term financing. They acquired it for $4,825,000 in January 2022 and spent over $396,000 on renovations using their own cash. The house is currently leased and generating a rent of $21,000 per month which resulted in a 1.49 DSCR. The rent is slightly below the appraiser’s estimate of $22,000/month. The house consists of 6,327 square feet. It is managed by a local property management company. The Borrower on the loan had excellent credit with a mid score of 742. The interest rate was fixed at 7.49% with amortized payments. We charged 2% origination points. The loan term was set at 30 years. This DSCR equity cash-out loan was funded in May 2023.