Rhode Island DSCR Loans for STR Financing

Grow Your Portfolio with DSCR Loans

Whether you're investing in STRs in Newport, long-term rentals in Providence, or coastal properties in Warwick, our DSCR loans  provide Rhode Island investors with the flexibility and terms needed to expand. These loans use the property’s income—not your personal financials—to determine eligibility. We look at whether the asset generates enough rental income to support the loan. With strong demand in both vacation and year-round rental markets, Rhode Island is ideal for investors focused on cash flow. DSCR loans simplify the process by removing traditional income requirements, making it easier to qualify and grow your portfolio.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score



 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit



Loan Terms


  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

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Frequently Asked Questions

What is a DSCR loan and how does it work for Rhode Island real estate investors?

A DSCR loan (Debt Service Coverage Ratio loan) is an asset-based loan product that evaluates a property's rental income rather than the borrower’s personal income or credit history. Lenders determine eligibility by calculating whether the income from the property is enough to cover loan payments, taxes, and insurance. This allows investors to secure financing without relying on conventional documentation. In Rhode Island, where STRs in Newport and year-round rentals in Providence are in steady demand, DSCR loans offer a simple, scalable financing tool for growing a profitable portfolio.

How is DSCR calculated in a typical loan scenario?

Rhode Island real estate investors calculate DSCR by dividing a property’s net operating income (NOI) by its total debt service for the year. For example, if a Rhode Island rental generates $90,000 in NOI and debt costs are $75,000, the DSCR would be 1.20. That indicates a strong cash flow buffer, which improves loan approval odds. While a 1.00 DSCR is the minimum threshold, most Rhode Island lenders prefer higher ratios—especially in markets like Providence, Newport, or coastal STR zones. Understanding DSCR in Rhode Island enables investors to evaluate property performance and meet lender expectations confidently.

What is considered a good DSCR ratio for Rhode Island investors when applying for financing?

For Rhode Island investors, a good DSCR ratio generally starts at 1.20. Although lenders might accept a 1.00 ratio, that’s often considered the bare minimum. A 1.20 DSCR in Rhode Island demonstrates that the income exceeds debt payments by 20%, making the property more appealing to lenders. Whether you're investing in Providence, Newport, or other coastal STR markets, maintaining a strong DSCR helps you secure more favorable financing. Understanding what qualifies as a good DSCR in Rhode Island gives investors clarity when structuring deals and forecasting long-term portfolio success.

Can I qualify for a DSCR loan if my personal income is limited?

Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.

How does a lender evaluate rental income when approving a DSCR loan?

In Rhode Island, lenders assess DSCR loans using only the rental income produced by the property. Rhode Island investors can provide leases, vacation rental reports, or appraised market rents to verify income. This income is divided by the property’s debt obligations to calculate the DSCR. If the DSCR is 1.00 or higher, Rhode Island lenders may approve the loan, even without personal income documentation. DSCR loans in Rhode Island offer more flexibility for investors in short- and long-term rental markets. Understanding how rental income is evaluated in Rhode Island helps you secure financing based on property performance alone.

What’s the minimum debt service coverage ratio required for approval?

In Rhode Island, most DSCR lenders require a minimum ratio of 1.00, showing the property can support its debt service independently. Some Rhode Island lenders may consider a DSCR as low as 0.75, but this usually applies to seasoned investors with strong financial backing. A DSCR of 1.20 or more is recommended in Rhode Island, especially in markets like Providence, Newport, or coastal STR zones. DSCR loans in Rhode Island provide asset-based lending options for investors scaling their portfolios. Understanding Rhode Island’s minimum DSCR thresholds helps ensure your investment meets lender criteria from the start.

Who should consider using a DSCR instead of a traditional loan?

These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. In Rhode Island, DSCR loans provide a faster, simpler alternative to traditional financing by using rental income to qualify. Whether investing in Providence, Newport, or vacation-heavy areas, Rhode Island borrowers gain flexibility and speed with fewer documentation barriers. DSCR lending is a practical tool for portfolio expansion in Rhode Island.

Expanding your rental portfolio beyond Rhode Island? We also offer financing in Massachusetts and Connecticut , making it easy to scale across New England with the same asset-based approval process.