Pennsylvania DSCR Loan Lenders for Long-Term and Short-Term Rentals

RCN Capital, a national direct private lender, funded a $204,750 1st lien position DSCR equity cash-out loan for a single-family home in Forty Fort, PA. The Borrower is a repeat foreign national investor. The subject property at that time was leased for $2,500 per month which was above the market rent amount per the appraiser’s estimate ($2,200). It was appraised at $315,000 As-Is value. We had to dispute the initial appraisal, and get a new 1007, and we still were able to close in under a month. The total loan amount was 65% loan-to-value with a 1.19 DSCR. The property is approximately 2,500 square feet. The Borrower had excellent credit with a mid-score of 737 and bank statements that showed sufficient liquidity. The interest rate was fixed at 8.99% with amortized payments and we charged 1.5% origination points. The DSCR was 1.19. The loan term was set at 30 years. This DSCR equity cash-out loan was funded in December 2023.

RCN Capital, a national direct private lender, funded a $136,500 1st lien position equity cash-out DSCR loan secured by a 2-unit residential investment property in Easton, Pennsylvania. The property value was estimated at $182,000 and a Collateral Desktop Analysis confirmed the value was acceptable, so our loan-to-value was 75%. We paid off a previous loan balance of $48,947. The subject property is a 2-family property currently leased for $1,825 per month which is below the market rates per the appraiser’s estimate ($2,000). This put the debt service coverage ratio (DSCR) at 1.33. The Borrower had excellent credit with a mid-score of 776 and bank statements that reflected sufficient liquidity to meet the reserve requirement. The subject property was in good condition. It is approximately 1,513 square feet. The interest rate was fixed at 7.8% with amortized payments and we charged 4% origination points. The loan term was set at  30 years. This DSCR equity cash-out loan was funded in May 2023.