Raleigh and the Triangle keep adding jobs and residents, and new townhome communities keep rising to house them. For investors, the opportunity is steady tenant demand. The challenge is that prices have risen faster than rents, so leverage and HOA dues need a careful look.
In short: LendingStreet is our top pick for Raleigh DSCR loans. We qualify on the property's rent with no W-2s or tax returns, and LLC borrowers are standard. Purchases go up to 80% LTV, cash-out up to 75% and rate-and-term up to 80% on some programs, with 30-year terms, a 620 minimum score and loans from $150,000. If a townhome lands just under 1.0x, sub-1.0 programs can help. Call (877) 298-1001 or use the form below.
We finance non-owner-occupied 1 to 8 unit rentals across Wake, Durham, Johnston and Orange counties. Loans are business-purpose and qualify on the rent, so a strong rental can carry its own loan whatever your personal income looks like on paper.
LendingStreet fits investors buying new-construction townhomes, landlords refinancing older ranches inside the Beltline, and out-of-state buyers who want exposure to the Triangle job market. The next step is to send the deal through the form below, with the HOA covenants if the home is in a community.
Well-known DSCR lenders include CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Compared scenario by scenario for investors in Raleigh, NC, LendingStreet comes out as the stronger choice, and one application covers it.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
Inside the Beltline, Oakwood, Mordecai and Boylan Heights have older homes near downtown, while Southeast Raleigh offers lower entry prices and older ranches. North Raleigh has 1980s and 1990s single-family homes.
Growth is strongest in the ring of towns around the city: Garner, Knightdale, Wendell, Wake Forest, Rolesville, Fuquay-Varina, Holly Springs, Apex, Morrisville and, in Johnston County, Clayton. Durham adds older mill-era homes and duplexes. Much of the new supply is townhomes in HOA communities, where dues and leasing rules matter.
Raleigh investors often start with a bank they already use, or a hard money lender for a quick purchase. Here is how LendingStreet compares on the terms that matter for a long-term rental.
| What matters on a rental loan | LendingStreet | Local bank or credit union | Local hard money lender |
|---|---|---|---|
| Documents | Rent-based qualifying, no tax returns | Often full personal income review | Light, but terms are short |
| Entity borrowing | LLC borrowers are standard | Varies | Common |
| Holding period | Built for long-term holds, 30-year terms | Varies | Built for short holds |
| Leverage | Up to 80% purchase, 75% cash-out | Varies | Varies |
| Credit score | 620 minimum | Varies | Varies |
| Large balances | No stated maximum | Varies; may be capped | Varies |
| Growing past one market | All 50 states and DC | Usually local only | Often regional |
Wake County's 2024 revaluation raised many assessed values, and towns set their own rates on top of the county's. Budget on the current assessed value and the combined county and town rate, not an older bill.
North Carolina charges an excise tax on deeds of $1 per $500 of price, customarily paid by the seller. Buyers pay normal title, recording and lender costs. Confirm figures with your closing attorney, since attorneys handle closings in North Carolina. Durham and Johnston counties set their own rates and revaluation schedules, so a home in Clayton or Durham can carry a very different tax line from a similar home in Wake County.
Many Triangle townhome and subdivision HOAs cap the number of rentals, set minimum lease terms or bar leasing for the first year of ownership. Read the covenants before you sign, and include HOA dues in your ratio.
North Carolina law prohibits local rent control, so rents follow the market. With new supply arriving in some suburbs, use a realistic market rent rather than the top listing in the community. Builder incentives can also make new homes look cheaper than resale homes nearby, so compare the full monthly cost, including HOA dues, before you choose.
Raleigh's rules on short-term rentals have changed several times. The city now requires a permit and sets operating standards, and HOAs can still prohibit nightly rentals. Confirm current rules with the city and your HOA before relying on short-term income. Storms that drift inland can bring flooding along creeks such as Crabtree Creek, so check the flood zone too. Most Triangle investors, and most of our Raleigh loans, rely on 12-month leases to tenants working in health care, universities, government and the research and technology employers around Research Triangle Park.
This example is illustrative and not a quote. An investor buys a new Knightdale townhome for $340,000 that leases for $2,250 a month. Taxes are $260 a month, the landlord policy is $75 because the HOA insures the exterior, and HOA dues are $140.
At 80% LTV the loan is $272,000, estimated principal and interest is about $1,810 and the total payment is about $2,285, for a DSCR of about 0.98x. That is close, and a sub-1.0 program may fit. At 75% LTV the loan is $255,000 and DSCR is about 1.04x, above the 1.0x standard.
| Item | 80% LTV | 75% LTV |
|---|---|---|
| Purchase price | $340,000 | $340,000 |
| Loan amount | $272,000 | $255,000 |
| Down payment | $68,000 | $85,000 |
| Estimated principal and interest | $1,810 | $1,697 |
| Property taxes | $260 | $260 |
| Insurance | $75 | $75 |
| HOA dues | $140 | $140 |
| Total monthly payment | $2,285 | $2,172 |
| DSCR at $2,250 rent | About 0.98x | About 1.04x |
Before you pick any lender, ask the same questions of each one and get the answers in writing.
Here is how LendingStreet answers: up to 80% LTV on purchases, up to 75% on cash-out and up to 80% on rate-and-term on some programs. The standard minimum is 1.0x, with sub-1.0 programs available. Seasoning varies by program, LLC borrowers are standard, and we lay out the timeline when we review your file. There is no stated maximum loan size, though max LTV can be lower on larger balances and 5 to 8 units.
Share the address, price, rent, HOA dues and covenants. We will run the ratio at a few loan amounts and show what works. Get a quote with the form below or call (877) 298-1001.
Our top pick is LendingStreet, for rent-based qualifying with no tax returns, LLC borrowers, 30-year terms and sub-1.0 programs for tight townhome numbers.
Yes. We lend across Wake, Durham, Johnston and Orange counties, throughout North Carolina, and in all 50 states and DC.
It can. Higher assessed values raise the tax line in your payment, which lowers the ratio. Use the current value and combined rate.
By custom the seller pays the $1 per $500 deed excise tax, but your contract controls.
Often, but many HOAs cap rentals or require a waiting period. Read the covenants before you buy.
Possibly, with a city permit, where zoning and your HOA allow it. Rules have changed, so confirm them first.
Yes, up to 75% LTV. Seasoning varies by program.
Yes. We finance 1 to 8 units. Max LTV can be lower on 5 to 8 units.
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