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Program 02
Rental / DSCR in North Carolina
DSCR loans for North Carolina rentals, qualified on the property.
Hold your rentals with financing that underwrites the asset, not just you. DSCR from 0.75, 30-year fixed and 5-7-10 ARM options, for a single property or a whole portfolio. In North Carolina the carry lines that move are property tax at revaluation and a homeowners rate that steps on a settled schedule. Business-purpose only, and every structure is set in underwriting.
0.75
min DSCR
5.5%
rates from
30-yr
fixed avail.
80%
max LTV
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
No tax returns or personal income docs in most cases. We qualify on the property's cash flow, so you can scale your portfolio without the paperwork drag of conventional lending.
Who it's for
Buy-and-hold investors
Single rentals and portfolios
Short-term rentals considered
Rate/term and cash-out refi
Typical terms
Loan amount$100K to $3M
Max leverageUp to 80% LTV
DSCRFrom 0.75
CreditFrom 640
Term30-yr fixed / 5-7-10 ARM
RateFrom 5.50% IO*
PrepayFlexible structures
*Typical terms, subject to underwriting and market conditions.
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Local FAQ
Rental / DSCR in North Carolina, answered.
Does North Carolina tax my rental income?
Yes, at a flat rate that is stepping down on a statutory schedule. The individual income tax ran 4.75% in 2023, 4.5% in 2024, 4.25% in 2025, and is 3.99% for 2026. Further trigger-based cuts below 3.99% depend on revenue targets we have not verified, so do not model past 2026 from this page. If you title in an LLC, the good news is the entity layer: franchise tax is $1.50 per $1,000 of net worth with a $200 minimum, but an LLC taxed as a partnership or a disregarded entity does not pay North Carolina franchise tax unless it elects corporate treatment. The corporate rate itself is phasing out, 2.0% for 2026 and 2027, then 1.0%, 0.5%, and zero from 2030. Run your own position past a North Carolina CPA.
How should I underwrite property tax on a North Carolina rental?
To the next revaluation, not to the seller's current bill. NCGS 105-286 requires counties to reappraise all real property at least every eight years, and between revaluations assessed values are frozen. Market appreciation is not captured until the county comes back around, so effective burden drifts down late in a cycle and then steps at reval. Counties above 75,000 population must advance a reappraisal if their sales-assessment ratio falls below 0.85 or rises above 1.15, and any county can shorten its cycle by resolution. Mecklenburg revalued effective January 1, 2023 on a four-year cycle, next 2027. Wake revalued effective January 1, 2024, next 2027, then two-year cycles from 2029. There is no homestead cap and no investor surcharge here, so every parcel sits at one local rate. Local rates and stacks live on the metro pages: Charlotte DSCR and Raleigh DSCR.
If the assessment jumps, can I appeal it?
Yes, and the deadline is an adjournment date rather than a fixed calendar day. Value appeals go to each county's Board of Equalization and Review, which convenes early in the year, and the window closes when that board adjourns. Adjournment dates vary by county and by year: Mecklenburg's 2026 deadline was May 4, 2026, and Wake's board typically adjourns for value appeals in early-to-mid April. Those are prior-year facts, not this year's, so check the current-year adjournment date with your county before you rely on either. NCDOR publishes a statewide overview of the appeal process. On a DSCR file this matters because the tax line feeds straight into the coverage ratio that sizes your loan, and a reval-year increase you did not appeal is one you carry for the rest of the cycle.
Is North Carolina insurance going to blow up my coverage ratio?
It moves in negotiated steps here, which is easier to model than most states. North Carolina is a rate-bureau state, unusual in our footprint: the North Carolina Rate Bureau files homeowners rates for all carriers and the Commissioner of Insurance approves, negotiates, or litigates them. In the settled 2025 round the Bureau asked for a 42.2% average statewide increase, with up to 99.4% in some territories, and the Commissioner settled it at 7.5% on June 1, 2025 and 7.5% on June 1, 2026, no more than 35% in any territory, with the Bureau barred from filing again before June 1, 2027. Location matters too. The coastal wind pool writes only in eligible coastal counties, so a Piedmont rental sits in the standard wind market with no pool assessment story. Metro-level average premiums are not something we publish; get a real quote on the address.
Who closes a North Carolina refinance, and is my LLC a problem?
An attorney closes it, and an entity borrower is the norm rather than a problem. Under Authorized Practice Advisory Opinion 2002-1, a licensed North Carolina attorney must be responsible for a residential real estate closing, so your refinance runs through a closing attorney's trust account instead of a title company escrow desk. On the borrower side, the entity is what keeps the loan cleanly outside consumer territory: the NC SAFE Act defines a residential mortgage loan as one made to individuals for personal, family, or household use, and NCGS 24-9 exempts a loan from Chapter 24's rate and fee limits when the borrower is a person other than a natural person or the purpose is not personal. We lend on non-owner-occupied investment property only. Ask your own counsel about how to hold title.
What credit score do I need for a North Carolina DSCR loan?
Credit starts at 640 on this program. That is a real floor, because a DSCR loan is priced off the property's cash flow rather than your tax returns, and credit is one of the few borrower inputs left in the file. DSCR itself starts at 0.75, so a property that does not fully cover debt service can still work. There is no hard credit pull to start. If your score is under 640, the asset-based programs are usually the better route. Subject to underwriting.
How much do I put down on a North Carolina rental?
20% at maximum leverage. We go up to 80% LTV, so on a $400,000 purchase that is $320,000 from us and $80,000 from you (400,000 x 80% = 320,000), before closing costs. Loan sizes run $100,000 to $3,000,000, with 30-year fixed or 5, 7, and 10-year ARM structures and flexible prepay options. Budget the tax line at post-revaluation value rather than the seller's frozen assessment. Subject to underwriting.
How fast does a North Carolina DSCR loan close?
Two to three weeks is the normal range. That is slower than our asset-based programs because a DSCR file needs the lease or market rent support, the appraisal, and insurance to line up, and here it also needs a closing attorney's calendar. The minimum loan is $100,000 and the maximum is $3,000,000. Start the file when you go under contract, not when the appraisal lands. Subject to underwriting.
More Rental / DSCR questions, answered on the program page
Resources
Guides for Rental / DSCR
Rental / DSCR · 5 min read
What Is a DSCR Loan? How Investors Qualify on Rental Income
Read the guide Strategy · 6 min read
Financing the BRRRR Method: Buy, Rehab, Rent, Refinance, Repeat
Read the guide Rental / DSCR · 5 min read
DSCR vs Conventional Loan: Which Is Better for Investment Property?
Read the guide Rates & Costs · 5 min read
Hard Money Loan Rates and Costs, Explained
Read the guide More in North Carolina
Other programs in North Carolina
Fix and FlipUp to 90% / 100% rehabGround-Up ConstructionUp to 70% LTV, most statesCRE BridgeUp to $10M, 24-36 moTransactional FundingSame-day double-close capitalBank Statement / No-DocNo tax returns requiredConventional InvestmentNon-owner-occupied investmentPortfolio LoansMultiple properties, one loanCRE PermanentLong-term agency & permSBA Financing7(a) & 504 placement
About the local figures on this page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-12.
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