Virginia DSCR Loan Lenders for Long-Term and Short-Term Rentals
Are you seeking long-term private financing for a residential rental property in Virginia? 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 Virginia’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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Virginia DSCR Loan Interest Rates
According to the loan documents software company, Lightning Docs, the average interest rate for Virginia DSCR long-term rental loans in the 1st quarter of 2024 was 8.07%. The average loan amount was $183,667. These stats are the average of 65 loans funded for residential rental properties in Virginia 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 DSCR Rental Loans in Virginia
DSCR Rental Purchase Loan for Single-Family Residence in Stafford, Virginia
$217,781
RCN Capital, a national direct private lender, funded a $217,781 1st lien position long-term rental loan for the acquisition of a single-family residence in Stafford, VA. We funded 62% of the $305,000 purchase price, while the Borrower contributed $38% cash at closing. The subject property was appraised for $352,000 As-Is and a collateral desktop appraisal (CDA) was ordered to confirm the appraised value. The Borrower had a mid-score of 724 and bank statements that reflected sufficient assets/liquidity. The total loan amount was 61.9% LTV & 71.4% LTC with a 1.11 DSCR. The property was in excellent condition, consisting of approximately 1,780 square feet set in a 2,935 square foot lot. The Borrower plans to hold the property as a long-term rental loan. The fixed interest rate was 7.5% with amortized payments. The loan term was set at 30 years. This DSCR rental loan was funded in December 2022.