DSCR loans in North Carolina
Qualify on the property's rent, not your income. Up to 85% LTV for U.S. residents, 70% for foreign nationals.
Term sheet the same business day. Flipping? Fix-and-flip loans statewide.
North Carolina rental markets at a glance
Typical home value and rent by metro, with the gross rent yield: a year of rent divided by the value.
Higher yield means less money down to reach a 0.8 DSCR, where the best pricing starts. Each link opens the DSCR calculator with that market's numbers.
| Metro | Typical home value | Typical rent | Gross yield | Down for best pricing | |
|---|---|---|---|---|---|
| Winston-Salem | $278,000 | $1,530/mo | 6.6% | 20% | Run the DSCR |
| Greensboro | $261,000 | $1,410/mo | 6.5% | 20% | Run the DSCR |
| Charlotte | $381,000 | $1,730/mo | 5.4% | 35% | Run the DSCR |
| Raleigh | $428,000 | $1,670/mo | 4.7% | 45% | Run the DSCR |
Metro-level typical values and rents, September 2026. The down payment column and the calculator link assume a 7.5% rate, a 30-year payment and $1,800 a year insurance. Change them to match your deal.
North Carolina property taxes and your DSCR
North Carolina's effective property tax rate is 0.66% of value a year (2024), ranked 33rd among the states.
On a $381,000 rental, 0.66% is about $2,515 a year, or $210 a month added to the payment the rent has to cover.
The actual bill depends on the county and city. Use the property's real tax figure when you run the numbers.
What North Carolina investors should know
Landlord rules worth knowing
A landlord must mail or deliver an itemized list of damages, with the balance of the security deposit, within 30 days after the tenancy ends and possession is returned. If the claim cannot be settled by then, an interim accounting is due in 30 days and a final one within 60.
For unpaid rent, the lease is forfeited if the tenant does not pay within 10 days after the landlord demands all past-due rent.
Source: N.C. General Statutes 42-52 and 42-3Foreclosure by power of sale
A deed of trust with a power of sale is foreclosed through a hearing before the clerk of court, with notice served at least 10 days before the hearing.
If the clerk finds a valid debt, a default, the right to foreclose and proper notice, the trustee can advertise and hold the sale. The clerk's ruling can be appealed to a judge.
Source: N.C. General Statutes 45-21.16Vacation rentals and rental registration
The North Carolina Vacation Rental Act covers rentals of residential property for vacation, leisure or recreation for fewer than 90 days, made under a written vacation rental agreement.
Separately, local governments may not require a permit to rent residential property or require rental registration, except for properties with repeated verified violations or in the top 10% for crime or disorder.
Source: N.C. General Statutes 42A-4 and 160D-1207Excise tax and revaluations
North Carolina levies an excise tax of $1 per $500 of the price or value on each deed. The seller (transferor) pays it to the register of deeds before recording.
Each county must reappraise all real property at least every eight years and may choose to do it more often.
Source: N.C. General Statutes 105-228.30 and 105-286North Carolina DSCR loan rates
Rates from 6.172%*, the same as nationwide. Rates move with the market, so the reliable number is a priced quote on your property.
Your DSCR, credit score, LTV, prepayment penalty and loan size move the rate most. In North Carolina, the property tax bill above feeds straight into the DSCR.
This week's DSCR loan rates* This may be for the strongest files, sometimes with a buydown. Subject to underwriting. Terms as of November 2026.
North Carolina DSCR loan requirements
- A North Carolina rental, long-term or short-term, not a home you live in
- DSCR of 0.75 or higher, 0.8 or higher for the best pricing
- Up to 85% LTV on a purchase for U.S. residents, 70% for foreign nationals
- Rent from the current lease, or the appraiser's market rent
- No tax returns, W-2s or pay stubs
- Close in your name or an LLC
Loans for North Carolina investors
- DSCR rental loans: up to 85% LTV purchase, 70% cash-out, 30-year fixed or interest-only
- Fix and flip (hard-money): up to 90% of purchase and 100% of rehab, capped at 75% of ARV
- Bridge loans: up to 70% LTV, 7-14 days to close
- Foreign nationals: every program, no SSN or U.S. credit, close in a U.S. LLC
North Carolina DSCR loan questions
What are DSCR loan requirements in North Carolina?
The same as nationwide. Best pricing at a DSCR of 0.8 or higher. Minimum 0.75 with a pricing adjustment.
Up to 85% LTV on a purchase for U.S. residents. Credit and reserves are priced in. No tax returns.
Can a North Carolina city require me to register my rental?
Generally no. State law bars local governments from requiring a permit to rent residential property or rental registration. The exceptions are properties with repeated verified violations or high crime or disorder.
Who pays the transfer tax in North Carolina?
The transferor, which is the seller, pays the state excise tax of $1 per $500 of value before the deed is recorded.
Sources
General information, not legal or tax advice. Loan terms are subject to underwriting.