Georgia DSCR Loan Lenders for Long-Term and Short-Term Rentals
Are you seeking long-term private financing for a residential rental property in Georgia? 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 Georgia’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...
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Georgia DSCR Loan Interest Rates
According to the loan documents software company, Lightning Docs, the average interest rate for Georgia DSCR long-term rental loans in the 4th quarter of 2023 was 8.75%. The average loan amount was $185,651. These stats are the average of 102 loans funded for residential rental properties in Georgia between October 1, 2023 and December 31, 2023 by multiple lenders that use Lightning Docs as their preferred software provider to prepare loan documents.
Funded DSCR Long-Term Rental Loans in Georgia
RCN Capital, a national direct private lender, funded a $118,000 1st lien position long-term rental loan for the acquisition of a single-family home in Perry, GA. We funded 76% of the $147,500 purchase price, while the Borrower contributed 20% cash to the purchase at closing. The 1,247-square-foot subject property was in good condition and was appraised at $155,000. It was vacant at the time of closing but the Borrower anticipates having a lease in place within 30 days, with a market rent of $1,350 per month. This repeat Client was self-employed. They had good credit and liquidity to close this deal. The loan was structured at 76.1% loan-to-value and 80% loan-to-cost, presenting a 1.15 DSCR with a 3-year prepayment penalty. The interest rate was fixed at 8.71% with amortized payments, and we charged 0.75% origination points. The loan term was set at 30 years. This DSCR rental purchase loan was funded in February 2024.
DSCR Refinance Loan for Portfolio of 26 SFR Rentals in Macon, Georgia
$1,795,350
Lima One Capital, a lender for residential real estate investors, funded a $1,795,350 1st lien position rental refinance loan secured by a portfolio of 26 single-family rentals homes in Macon, GA, approximately 80 miles southeast of Atlanta. The value of the entire portfolio was estimated at $2,494,000 so our loan-to-value was 72%. The properties were all purchased at different times, and there was a previous loan on them which we paid off. Most of the homes were leased, but some of them were vacant at the time of closing. Lima One provided a fixed-rate, fully amortized loan. This gave the Investor certainty in terms of expenses so they can plan cash flow over the long term. The loan term was set at 30 years. This DSCR rental refinance loan was funded in October 2023.
Conventus LLC, a direct private mortgage lender, funded a $1,498,725 1st lien position equity cash-out loan secured by a portfolio of 9 single-family homes in suburban Decatur, GA. The combined value of all 9 properties was estimated to be $2,702,800, so our loan-to-value for the entire portfolio was 56%. All 9 rental homes were owned free & clear prior to closing. The Borrower did not have any debt on them. All homes were rented and cash-flowing with a combined 1.10 debt service coverage ratio. The Borrower had excellent credit, and this was their 2nd portfolio loan with us. They plan to continue leasing the properties and hold them long-term. The homes were in good condition and tenant-occupied at closing. The interest rate was fixed at 7.375% with amortized payments. We charged a 1% origination point. The loan term was set at 30 years. This DSCR equity cash-out loan was funded in February 2023.
RCN Capital, a national direct private lender, funded a $220,000 1st lien position equity cash-out loan secured by a single-family residence in Lawrenceville, GA. The property value was estimated to be $389,000 so our loan-to-value was 56%. A Collateral Desktop Analysis (CDA) was ordered to confirm that the value was acceptable. The repeat and experienced Borrower was looking to refinance existing debt on the property and hold it as a long-term loan. The subject property was being leased for $2,500 per month which was below the market rates as per the appraiser’s estimate. The Client purchased the property in April 2022 for $66,000 and completed a heavy rehab. In January 2023, the opinion of value was $279,000 ($160,000 As-Is value). The rehab budget at that time was $65,000. The property condition was down to the studs (original owner said there was a fire and ran out of money to finish the home so they sold it at a great discount). Since then, the property has received: a new roof, gutters, siding, interior/exterior paint, new flooring, lighting, water heater, and HV/AC system. The kitchen was updated with solid surface countertops and stainless steel appliances. The bathrooms were updated. The subject property is approximately 1,316 square feet. The Borrower had a mid-FICO score of 696 and bank statements that reflected sufficient liquidity. The total loan amount was 56.6% of the loan-to-value with a 1.10 DSCR. The interest rate was fixed at 6.25% with amortized payments and we charged 3% origination points. The loan term was set at 30 years. This SFR DSCR equity cash-out loan was funded in November 2022.
RCN Capital, a national direct private lender, funded a $116,250 1st lien position long-term rental loan for the acquisition of a single-family residence in Macon, GA. We funded 69% of the $155,000 purchase price, while the Borrower contributed 31% cash at closing. The subject property was appraised for $168,000 as-is with an estimated market rent of $1,350/month. The Borrower got a $13,000 discount off the appraised value. They had excellent credit and solid liquidity which was sufficient to close both purchase deals in the pipeline. The loan was structured at 75% of the purchase price presenting 1.32 DSCR. The subject property was in good condition. It was approximately 1,810 square feet. The Borrower plans to continue leasing the property long-term. The interest rate was fixed at 6.5% with amortized payments, and we charged 2% origination points. The loan term was set at 30 years. This DSCR rental purchase loan was funded in February 2023.
I Fund Cities, a direct private lending firm, funded a $167,600 DSCR loan for a single-family rental property in Savannah, Georgia. The loan-to-value was 80%. One of our great broker partners originally referred this borrower over to Caitlin, one of iFC’s super-pro loan officers. This was a repeat borrower who does a lot of her business within a certain proximity, so getting the initial file together for processing was simple. Caitlin had a great appraiser in mind that delivered the report to iFC quickly.
“The borrower submitted a cash offer on this property,” says Caitlin. “She was using a method of ‘cash offer/delayed purchase’ to make the offers she submitted to sellers more attractive. However, she, of course, preferred not to use her own cash. We were initially discussing a ‘delayed purchase,’ which is where the client purchases the property with cash initially, and then we finance the transaction within a short amount of time on the back end.” However, it was going to be more advantageous to the borrower if we could fund the deal before closing. “Closing was 2.5 weeks away,” recalls Caitlin, “so I worked quickly to beat the clock, and close first, preventing her from using her own funds to initially close on the loan.“ Adds Caitlin, “On the front end, I communicated the possibility we would fund with all parties involved with this transaction, so everyone was on the same page.”
This DSCR loan was funded in February 2022.
Key Loan Benefit to Borrower:
Says Caitlin “It was a smooth closing for not one, but two properties the borrower initially thought she would need to use her own cash to close on.
Customer Feedback:
“The closing went well. You are very diligent, responsive, and helpful. Hope we will work together again in the near future…5 stars!”