Best DSCR Lenders in Little Rock, AR

The debt service coverage ratio (DSCR) loan has emerged as a game‑changing financing option for real estate investors in Little Rock. Unlike traditional mortgages that depend heavily on the borrower’s personal W‑2 income and tax returns, DSCR loans rely on the income produced by the rental property itself. For investors, this shift in underwriting philosophy opens the door to scaling a rental portfolio without being constrained by debt‑to‑income ratios or employment history. In a city like Little Rock – the capital of Arkansas and a regional economic hub – investors are increasingly turning to DSCR financing to acquire, refinance or cash out on single‑family rentals, duplexes, multifamily properties and even short‑term vacation rentals.

Demand for rental housing in Little Rock is strong. According to Stacker’s 2025 housing market review, the metro area recorded a median sale price of $244,057, with monthly home sales averaging 880 and a monthly inventory of 3,369 homes. Properties spend around 59 days on market, and the area has a 3.9‑month supply of homes, indicating a balanced market that still favors sellers. On the rental side, RentCafe reports that the average rent in Little Rock is about $1,072, with one‑bedroom apartments renting for around $945 and three‑bedroom rentals averaging $1,444. Notably, renters make up approximately 46 % of households in the city. This combination of moderate home prices, steady sales volume and a large renter population creates fertile ground for real estate investors. DSCR loans, which measure a property’s cash flow relative to its debt obligations, are particularly well‑suited to this environment.

This article will explore how DSCR financing works, what to look for in a lender, and why SelectHomeLoans.com is positioned as the top DSCR lender in Little Rock. We’ll also provide a comprehensive list of other DSCR lenders – including regional banks, national private lenders and local credit unions – along with rates, terms and qualification criteria. Finally, we’ll discuss common mistakes investors make with DSCR loans, compare DSCR financing with traditional mortgages, and offer city‑specific investing tips to help you make the most informed decision.

Overview of the Little Rock Real Estate Investment Market

To understand why DSCR loans are gaining traction in Little Rock, it’s important to examine the city’s real estate fundamentals. Stacker’s 2025 data reveals that the median sale price in the metro area hovers around $244,057, while the number of monthly sales (approximately 880 transactions) and new construction sales (152 per month) indicate a healthy, active market. The monthly inventory of 3,369 homes provides a relatively balanced supply, and the 3.9‑month supply points to modestly increasing prices but not a severe shortage. Homes generally spend 59.3 days on market, which suggests that properties sell at a steady pace.

In the rental market, affordability and demand continue to shape investor strategy. The average rental rate in Little Rock is $1,072, with one‑bedroom apartments renting for $945, two‑bedroom units for around $1,133 and three‑bedroom units for $1,444 per month. RentCafe also notes that rental rates increased by about 1.26 % over the past year and that nearly half of the city’s households are renters. Because many residents prefer to rent rather than buy, investors can achieve stable occupancy and strong cash flow by purchasing well‑located rental properties.

Little Rock’s economy diversifies across healthcare, government, technology and logistics, providing a stable job market that attracts new residents. The area includes strong neighborhoods like Hillcrest, Midtown, Heights and West Little Rock, each with distinct housing stock. Investors also look toward suburban communities such as North Little Rock, Maumelle and Bryant, where property values are slightly lower but rental demand remains steady.

Given these dynamics, Little Rock ranks among the top Arkansas cities for DSCR lending. Newfi, a national DSCR lender, lists Little Rock and Fayetteville among its top cities for investment and notes that a 2‑bedroom home in Arkansas had a median price of roughly $163,064 in 2025, with median rent around $976. For investors, the ability to qualify for financing based on the property’s projected rental income, rather than personal income, makes DSCR loans an attractive alternative to conventional mortgages.

How DSCR Loans Work for Rental and Investment Properties

A DSCR loan calculates the debt service coverage ratio, which is the property’s annual net operating income (rental revenue minus operating expenses) divided by its annual debt service (principal, interest, taxes and insurance). This ratio indicates whether a property’s cash flow can cover its debt obligations. Lenders generally look for a DSCR of 1.0 or greater, meaning the property’s income is equal to or exceeds its debt obligations. Some programs accept DSCR ratios as low as 0.75 or 0.8 for strong borrowers or properties in high‑growth markets.

Unlike conventional mortgages, DSCR loans typically do not require personal income verification, W‑2 forms or tax returns. Easy Street Capital, which offers DSCR loans throughout Arkansas, emphasizes that these loans are secured by 1–4 unit residential properties used strictly for business or investment purposes. They allow up to 80 % loan‑to‑value (LTV) for purchases and rate‑and‑term refinances and 75 % LTV for cash‑out refinances, with rates starting around 5.75 %. The DSCR approach is property‑centric: lenders underwrite the loan based on the expected rental income relative to the mortgage payment, rather than on the borrower’s personal debt‑to‑income ratio.

Programs vary between lenders, but they generally share some common characteristics:

• Loan terms: Many DSCR lenders offer 30‑year fixed loans, 15‑year or 40‑year products, and interest‑only options. Some lenders, such as Newfi, also provide interest‑only periods or 40‑year amortization options for investors who wish to maximize cash flow.
• Credit scores: Minimum credit score requirements usually range from 640 to 680. Lenders like Newfi accept borrowers with scores as low as 640 while Express Capital Financing prefers 650 or higher.
• Down payment: Borrowers typically need to invest 20 % to 25 % of the purchase price. Express Capital Financing offers up to 85 % LTV for purchases and 80 % for rate‑and‑term refinances, while Ridge Street Capital provides up to 80 % LTV.
• DSCR minimum: Many lenders require the DSCR to be at least 1.0, though some programs, such as those from Newfi and some private lenders, may allow DSCR ratios down to 0.8. Ridge Street Capital requires a DSCR of 1.0 and six months of reserves.
• Property types: DSCR loans can finance single‑family homes, townhomes, condos, duplexes, triplexes, quadplexes and small multifamily properties. They are also popular for short‑term rentals (Airbnb or vacation homes), as lenders base qualification on projected nightly rental income rather than year‑round leases.
• Income verification: DSCR lenders typically do not require tax returns, pay stubs or personal financial statements. Instead, they ask for rental income documentation, appraisals and property insurance details.
• Speed of funding: Because the underwriting process is simplified, DSCR loans can close quickly. Express Capital Financing advertises funding in as little as three weeks, while Ridge Street Capital notes closings in about 21 days.

What Investors Should Look for in a DSCR Lender

Choosing the right DSCR lender is critical to maximizing your investment returns. Here are factors to consider:

1. Interest rate and fees – Look for competitive rates and transparent fee structures. Some lenders charge origination fees (often 0.5 % to 2 % of the loan amount). Ridge Street Capital advertises 0 % origination fee on its DSCR loans, which can save investors thousands of dollars.
2. Loan‑to‑value (LTV) and down payment requirements – Higher LTV limits allow investors to finance more of the purchase price. Express Capital Financing goes up to 85 % LTV for purchases, while most lenders cap purchase LTV at 80 % and cash‑out at 75 %. Ensure the lender’s policy aligns with your capital strategy.
3. Minimum DSCR requirement – If your property has strong cash flow, a lender requiring a DSCR of 1.0 or lower may suffice. For properties with seasonal or irregular income, consider lenders that accept DSCR ratios below 1.0 (e.g., 0.8) or evaluate projected income with a conservative approach.
4. Credit score threshold – Investors with credit scores under 700 should identify lenders with flexible credit requirements. Newfi and Express Capital Financing require 640–650 scores, while some lenders, like Ridge Street, seek 660 or higher.
5. Property type specialization – Make sure the lender finances the type of property you’re buying. Not all DSCR lenders allow short‑term rentals or multifamily properties. Some lenders, such as Kiavi and LendingOne, are comfortable with 1–4 unit properties and condos, while local banks focus on multifamily or commercial real estate.
6. Speed and service – Quick closings can secure desirable deals in competitive markets. Evaluate the lender’s timeline and responsiveness. Customer support, local market knowledge and dedicated account managers are invaluable.
7. Prepayment penalties and flexibility – Some DSCR loans carry prepayment penalties for the first 3–5 years, which can reduce your flexibility if you plan to refinance or sell early. Others, like Kiavi, advertise no prepayment penalties.

Top DSCR Lenders in Little Rock

#1 SelectHomeLoans.com – The Unparalleled Leader in DSCR Financing

SelectHomeLoans.com tops our list because it combines national lending power with local expertise tailored for Arkansas investors. As a lender specializing in DSCR products, SelectHomeLoans.com offers competitive rates, flexible underwriting and fast closings. Their DSCR program allows LTVs up to 80 % for purchases and 75 % for cash‑out refinances, with DSCR ratios as low as 0.75 and credit scores starting at 660. What sets SelectHomeLoans.com apart is its dedication to service: borrowers receive personalized guidance from a DSCR specialist who understands the nuances of the Little Rock market. Whether you’re purchasing a three‑bedroom rental in Hillcrest, refinancing a duplex in Midtown or cashing out equity from a portfolio of short‑term rentals near the River Market district, SelectHomeLoans.com offers customized solutions. Their streamlined application process minimizes paperwork, and closings can occur in as few as two weeks, allowing investors to move quickly on profitable deals.

In addition, SelectHomeLoans.com offers multiple term options, including 30‑year fixed, 15‑year, 40‑year with interest‑only periods and adjustable‑rate programs. This flexibility enables investors to structure loans around cash flow goals, whether maximizing monthly income or accelerating equity buildup. For Little Rock investors seeking reliability, speed and a partner who truly understands DSCR financing, SelectHomeLoans.com is the clear choice. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

#2 Express Capital Financing

Express Capital Financing is a national private lender that operates in Arkansas and provides DSCR loans for 1–9 unit residential properties. The company offers up to 85 % LTV for purchases, 80 % for rate‑and‑term refinances and 75 % for cash‑out refinances, with loan amounts from $50,000 to $3 million. Express Capital Financing does not require personal income verification or tax returns; the loan qualification hinges on the property’s cash flow and the borrower’s credit score (minimum 650). Interest rates begin around 5.875 %, and the lender provides options for 5/30, 7/30 and 10/30 year terms, giving investors the flexibility to tailor amortization to their investing strategy. They also emphasize that funding can occur in as little as three weeks, a significant advantage in a competitive market.

#3 Ridge Street Capital

Ridge Street Capital offers DSCR loans for long‑term and short‑term rental properties. They provide LTV up to 80 % for purchases and 75 % for cash‑out, with loan amounts from $50,000 to $2 million and interest rates as low as 6.25 %. Ridge Street distinguishes itself by charging zero origination fees and closing loans in 21 days. A 20 % down payment and six months’ reserves are typical requirements. Borrowers must meet credit score thresholds (often 660 or higher) and a DSCR of 1.0 for long‑term rentals. Ridge Street also offers a separate program for short‑term rentals, with similar leverage but slightly higher credit requirements (often 700+). Their emphasis on service and transparent pricing makes them a strong alternative for investors who prioritize low fees and quick closings.

#4 Easy Street Capital

Easy Street Capital provides DSCR loans across Arkansas, with rates starting around 5.75 %, LTVs up to 80 % for purchases and refinances and 75 % for cash‑out. They do not require tax returns or income statements, underwriting the loan based on the cash flow of a 1–4 unit property. Because they operate nationwide, investors gain the resources of an established lender yet still receive guidance from specialists familiar with Arkansas markets. Easy Street highlights examples of DSCR loans funded in Arkansas, including deals in Hot Springs Village, Jacksonville, Benton and West Memphis, demonstrating that they are active in the state.

#5 Newfi

Newfi is another national DSCR lender that services Arkansas investors. The company’s DSCR program accepts minimum credit scores of 640 and allows DSCR ratios as low as 0.8. They offer 15‑, 30‑, and 40‑year fixed loans and provide interest‑only options for the first 10 years. Down payments start at 20 %, and Newfi emphasizes that borrowers can finance both long‑term and short‑term rentals. For investors seeking flexible terms and the ability to finance multiple properties, Newfi can be an attractive choice.

#6 Local Lenders: Union Bank of Arkansas and Bank OZK

While national private lenders dominate the DSCR space, local banks and credit unions in Arkansas also provide financing options for income properties. Union Bank of Arkansas offers commercial real estate loans that can be used for the purchase, refinance or construction of owner‑occupied or non‑owner‑occupied property. They emphasize competitive rates, flexible terms and local decision‑making, which can be beneficial when navigating Arkansas zoning and permit requirements. Bank OZK, a major Arkansas bank, provides long‑term and short‑term loans, real estate loans and lines of credit for both owner‑occupied and investment properties. Although not strictly DSCR lenders, these institutions may offer cash‑flow‑based underwriting or hybrid structures for experienced investors. Investors who have longstanding relationships with local banks often find competitive terms and personalized service.

#7 Additional Options: LendingOne and Kiavi

LendingOne is a private lender offering DSCR and rental property financing across the country. Their DSCR loans range from $70,000 to $50 million with terms of 9 to 360 months and originate with 0.75 % to 1.99 % fees. LendingOne will finance single‑family homes, townhomes, condos and 2–4 unit properties, requiring credit scores of 640+ and closing in as little as 10 business days.

Kiavi is another national lender offering DSCR loans with amounts from $100,000 to $3 million and interest rates ranging 6.62 % to 12.45 %. Kiavi provides 12‑ to 30‑year terms, LTV up to 80 % for purchases, DSCR ratios greater than 1.0 and credit score requirements starting at 640. Notably, Kiavi has no prepayment penalty and can close loans in as little as seven days, making them appealing to investors who need rapid funding.

DSCR Loan Rates, Terms and Qualification Factors

While rates and terms vary by lender, the DSCR loan market in Little Rock generally offers competitive options compared to conventional mortgages. Investors should expect rates starting in the mid‑5 % to mid‑6 % range, depending on the DSCR ratio, credit score, loan amount and property type. For example, Easy Street Capital advertises rates starting around 5.75 %, while Ridge Street Capital cites rates as low as 6.25 %. Express Capital Financing lists rates from about 5.875 %. Rates may rise if the DSCR ratio is below 1.0, credit scores are lower or the property type is unconventional.

Loan terms typically run 30 years (often with 5‑, 7‑ or 10‑year fixed periods followed by adjustable rates), though some lenders offer 40‑year loans with interest‑only features. Minimum credit scores range from 640 to 660; down payments usually start at 20 %, though Express Capital Financing’s program allows up to 85 % LTV for purchases. Lenders may also require borrowers to maintain a certain number of months of reserves (typically six months of principal, interest, taxes and insurance). Because DSCR loans are primarily underwritten against the property’s income, borrowers can often finance multiple properties without hitting an arbitrary cap, enabling portfolio growth.

Common Mistakes Investors Make with DSCR Loans

While DSCR loans offer flexibility and speed, investors should avoid several common pitfalls:

1. Underestimating operating expenses – The DSCR calculation depends on accurate projections of taxes, insurance, maintenance, management fees and vacancy. Overly optimistic estimates can inflate the DSCR ratio and jeopardize cash flow once the loan is secured.
2. Ignoring vacancy and market rent – In Little Rock, the rental market is competitive but not immune to vacancies. Investors should examine comparable rents and occupancy trends. RentCafe’s data shows that rents have increased by about 1.26 % year‑over‑year; a modest growth assumption is prudent.
3. Failing to maintain reserves – Many lenders require six months of reserves for PITI. Beyond lender requirements, reserves are essential for unexpected repairs or periods of vacancy.
4. Overleveraging – While DSCR loans often allow high LTVs, taking on too much leverage can erode cash flow, especially if interest rates rise or property expenses increase.
5. Neglecting to shop around – Differences in rates, fees and loan terms among lenders can have a significant impact on returns. Investors should compare options and weigh total cost of borrowing rather than focusing solely on the interest rate.

DSCR Loans vs. Traditional Investment Property Financing

When comparing DSCR loans to conventional mortgages or commercial loans, investors should understand the trade‑offs. Traditional loans typically offer lower interest rates and smaller down payments but rely on the borrower’s personal income, tax returns and debt‑to‑income ratios. This can limit the ability of self‑employed investors or those with multiple mortgages to qualify. DSCR loans, on the other hand, focus on the property’s cash flow and may close faster because there is less documentation. Lenders like Ridge Street Capital highlight that DSCR loans are designed for investors who may not qualify for conventional financing due to debt‑to‑income constraints but are willing to pay slightly higher rates and down payments. Investors who have strong personal income and want the lowest possible rate may still prefer a conventional loan, especially if the property is owner‑occupied or will be held long term.

DSCR loans are also more flexible when it comes to property use. Many conventional loans do not permit short‑term rentals or require a high owner‑occupancy ratio in multifamily properties. In contrast, DSCR lenders will underwrite based on projected nightly rates for vacation rentals or the combined rental income of a duplex or fourplex.

Who Are DSCR Loans Best Suited For (And Who They Aren’t)

DSCR loans are ideal for:

• Real estate investors with multiple properties – Because qualification is based on the property rather than personal income, investors can continue to grow their portfolio without reaching a personal debt‑to‑income ceiling.
• Self‑employed or 1099 earners – Entrepreneurs and self‑employed individuals may not have consistent W‑2 income or may claim significant expenses on tax returns. DSCR loans bypass this issue.
• Investors seeking to finance short‑term rentals or vacation homes – DSCR lenders that allow short‑term rentals can underwrite based on projected rental income rather than long‑term leases.
• Borrowers who want fast, hassle‑free closings – The simplified documentation and property‑focused underwriting means DSCR loans can close more quickly than conventional loans.

However, DSCR loans might not be the best option for:

• Owner‑occupant buyers – DSCR loans are strictly for business or investment purposes. Borrowers planning to live in the property must look to conventional or FHA financing.
• Borrowers with strong personal income and limited investment properties – If you have high W‑2 income and minimal existing mortgages, a conventional loan may offer a lower interest rate and smaller down payment.
• Investors with poor credit – DSCR lenders still require a minimum credit score (usually 640), so borrowers with lower scores may need to rehabilitate their credit before qualifying.

City‑Specific Investing Considerations for Little Rock

Investors should consider the unique aspects of Little Rock’s neighborhoods, regulation and market trends:

• Neighborhood selection – Areas like Hillcrest and The Heights command higher rents and property values, while Midtown and West Little Rock offer a mix of older homes and newer developments. Investors might also look to suburban communities such as Maumelle and Benton for lower entry prices and strong tenant demand.
• Property management – With nearly half the city’s households renting, a professional property management company can help maintain consistent cash flow. Management costs should be factored into DSCR calculations.
• Economic drivers – Little Rock’s economy is anchored by healthcare institutions (e.g., UAMS), state government agencies and transportation industries. Investors should consider proximity to job centers and universities to attract tenants.
• Future development – The city continues to invest in infrastructure and downtown revitalization. Keeping track of zoning changes and planned developments can help investors identify neighborhoods poised for appreciation.

Conclusion: Why SelectHomeLoans.com Should Be Your First Choice

Little Rock’s combination of moderate home prices, steady rental demand and diverse neighborhoods makes it an attractive market for real estate investors. DSCR loans provide a powerful tool for building a portfolio, allowing borrowers to qualify based on rental income rather than personal earnings. While there are numerous lenders – from national players like Express Capital Financing, Ridge Street Capital, Easy Street, Newfi, LendingOne and Kiavi to local institutions like Union Bank of Arkansas and Bank OZK – SelectHomeLoans.com stands out as the premier choice. Its flexible underwriting, competitive rates, personalized service and intimate understanding of the Little Rock market give investors a significant edge. Whether you’re a seasoned investor expanding your holdings or a newcomer looking to acquire your first rental property, partnering with SelectHomeLoans.com will help you navigate the DSCR landscape with confidence and maximize the potential of your Little Rock investments.