Question 1

Where in the Triangle does a DSCR rental actually cash flow?

Accepted Answer

East and south of Raleigh, not the west-side suburbs. As of June 2026, Zillow's rent index ran 0.58% of value a month in Zebulon and 0.62% in Smithfield, versus 0.28% in Cary and 0.27% in Chapel Hill. Wendell, Garner, and Knightdale sit in between at 0.47% to 0.52%. Cary and Apex are appreciation and school-district markets, not DSCR markets; the yield lives in the cheaper eastern Wake towns and Johnston County.

Question 2

How does Wake County's revaluation cycle change my DSCR carry math?

Accepted Answer

The tax line moves in a step, not a slope. Wake County reappraises property in one large jump rather than annually. The 2024 revaluation raised residential values 53% in a single reset, and the next revaluation is effective January 1, 2027, with the county then shifting to a two-year cycle starting 2029. A DSCR loan underwritten to today's tax bill across a multi-year hold should model that 2027 step, not assume the current bill holds flat.

Question 3

Can I underwrite a Raleigh rental near NC State by the bedroom?

Accepted Answer

Not past four unrelated tenants, absent a zoning determination. Raleigh's housing code defines a "family" as at most four unrelated people living together in a dwelling unit; a household of more sits outside that use unless the parcel's zoning permits a group-living use like a boardinghouse, which is capped at six people with rentals over 30 days. A five-bedroom house leased by the room to five unrelated students near campus exceeds the ordinance. Underwrite at four unrelated tenants unless the borrower can show the zoning determination.

Question 4

Does a short-term rental in Raleigh need city registration before we can count that income toward DSCR?

Accepted Answer

It needs a zoning permit, not a registration, and North Carolina law forbids the latter. Raleigh's short-term rental ordinance (TC-8-20) requires an annually renewed zoning permit, currently the FY27 commercial zoning permit fee of $278, and allows whole-house rentals with no owner-occupancy requirement in ten zoning districts. North Carolina's NCGS 160D-1207(c) separately bars cities from requiring general rental registration. Wake County's 6% room occupancy tax still applies to the stay itself, monthly, due the 20th. Run the numbers with the DSCR calculator.

Question 5

If my Triangle portfolio spans Raleigh and Durham, can I use one tax number for both?

Accepted Answer

No, and blending them is the most common carry-math error we see here. On the fiscal 2025-2026 rates that put all three counties on one footing, a Raleigh (Wake County) address ran a combined $0.8721 per $100, a Durham address $0.9913, roughly 14% higher on the same value, and a Chapel Hill (Orange County) address $1.1383, about 30% higher. Wake revalued in 2024; Durham and Orange both revalued in 2025. Each county sets its own rate, revaluation year, and appeal calendar, so a scattered-site Triangle deal needs county-by-county underwriting. See our portfolio loans for how we structure multi-property Triangle deals.

Question 6

What is a DSCR loan, and how do I qualify without tax returns?

Accepted Answer

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Question 7

What rate and terms can I get on a rental loan?

Accepted Answer

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

Question 8

How much can I borrow, and what is the maximum LTV?

Accepted Answer

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

Question 9

What credit score do I need for a DSCR loan?

Accepted Answer

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Question 10

Can I get a DSCR loan on a short-term rental (Airbnb)?

Accepted Answer

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Question 11

Is there a prepayment penalty?

Accepted Answer

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.

Rental / DSCR in Raleigh

How it works

Run your Rental / DSCR numbers.

Rental / DSCR in Raleigh: local questions

Rental / DSCR questions, answered.

Guides for Rental / DSCR

Rental / DSCR vs. other options

Other programs in Raleigh

Funding Raleigh deals fast.