Best DSCR Lenders in Providence, RI

Providence is Rhode Island’s capital and a vibrant historic city that anchors the state’s economy and culture. With colleges like Brown University and the Rhode Island School of Design and a growing technology and biomedical sector, the city attracts a steady flow of young professionals, students and families. Real‑estate investors are taking notice because Providence combines dense, walkable neighborhoods with a limited supply of homes, making rental properties attractive. In December 2025 the median home price in Providence was about $420,000, while the median price per square foot was $302. Roughly 440 homes were listed for sale and 638 rental properties were available, demonstrating an active market. Properties spent about 45 days on the market, and the median rent for a residential unit was $2,350 per month. These figures show a seller’s market; homes typically sell for 100 % of the asking price. Neighborhood prices vary dramatically from North End where homes cost around $399,949 and rent averages $2,100, to the upscale East Side where homes exceed $674,900 and command rents around $2,400. Investors need financing solutions that recognize local rental potential and provide leverage without burdensome personal income documentation. Debt‑service coverage ratio (DSCR) loans meet that need.

Overview of Providence’s real estate investment market

Providence’s housing market has been resilient in the face of higher interest rates. Median sale prices have crept up roughly 1.28 % month‑over‑month, and inventory remains relatively tight at about 440 listings. Though supply has improved slightly, demand from local buyers and investors keeps prices steady. Rental demand is even stronger: the city recorded 638 rental listings in December 2025, and rents rose about 2.08 % month‑over‑month. Universities and a stable healthcare sector provide a constant pool of renters. Neighborhoods such as Mount Pleasant, West End, Silver Lake and Wanskuck offer more affordable price points with median home prices around $364,950–$399,900 and rents in the $1,800–$2,199 range. Higher‑end areas like the East Side and Elmhurst have larger multifamily buildings that produce strong cash flow; median prices exceed $509,950 and rents approach $2,325. Because Providence is a relatively small city, investors can find both modest duplexes in working‑class neighborhoods and luxury condos downtown. The balanced mix of working professionals, students and families reduces vacancy risk.

How DSCR loans work for rental and investment properties

DSCR loans are mortgage products designed specifically for investment property financing. Rather than evaluating a borrower’s personal income and debt‑to‑income ratio, DSCR lenders look at the property’s projected cash flow. The debt‑service coverage ratio is calculated by dividing the property’s net operating income (NOI)gross rent minus expenses by the annual debt service. A DSCR of 1.00 indicates the property generates enough income to cover the mortgage payment; a DSCR above 1.20 provides a cushion. DSCR loans are appealing because they:

• Rely on property cash flow rather than tax returns or W‑2s. Lenders like Griffin Funding explain that DSCR loans are based on rental income from 1–4‑unit residential properties and can be used for both long‑term and short‑term rentals including Airbnbs. Borrowers can qualify with DSCR ratios as low as 0.75, though many lenders prefer 1.2 or higher.
  
• Allow lower credit scores. Some lenders accept credit scores as low as 620, although lower scores may require higher down payments or interest rates. Others set minimums around 650.
  
• Offer high leverage. DSCR loans often finance up to 80 % of the property’s value for purchases and slightly less for cash‑out refinances. Express Capital Financing’s program, for example, lends up to 85 % loan‑to‑value (LTV) for purchases, 80 % LTV for rate‑and‑term refinances and 75 % LTV for cash‑out refinances.
  
• Provide flexible terms. DSCR mortgages can have 30‑year amortization schedules with fixed or adjustable rates. Many lenders offer 5/30, 7/30, 10/30 or fully amortizing 30‑year terms. Interest‑only periods are common, improving initial cash flow.
  
• Avoid income verification. Because DSCR loans are asset‑based, investors do not need to provide tax returns or pay stubs. This makes them ideal for self‑employed investors or those with complex finances.
  

In practice, DSCR lenders will order a rental appraisal that estimates market rent for each unit. They then calculate DSCR using the projected rent less expenses (property taxes, insurance, HOA fees, maintenance and a vacancy factor). If the ratio meets the lender’s threshold (often 1.0–1.2), the loan is approved. Most programs require a minimum down payment around 20 % and include cash‑out options. Investors can hold properties in LLCs or corporations for liability protection, making DSCR loans a favorite for building portfolios.

What investors should look for in a DSCR lender

Choosing a DSCR lender involves more than picking the lowest interest rate. Investors should evaluate several factors:

1. Interest rates and fees – DSCR loan rates typically start in the mid‑5 % range. Easy Street Capital advertises rates from 5.75 % for Rhode Island DSCR loans, while Express Capital Financing lists rates starting at 5.875 %. Lenders may charge origination points (1–3 % of the loan) plus underwriting fees. Compare both the rate and total closing costs.
   
2. LTV and DSCR requirements – Higher leverage helps investors preserve capital. Express Capital Financing allows 85 % LTV on purchases, but some lenders may cap LTV at 75–80 %. Check the minimum DSCR ratio; some require 1.25 or higher while others lend with DSCR as low as 0.75.
   
3. Credit score thresholds – Minimum FICO scores vary. Griffin Funding accepts scores as low as 620, Express Capital requires 650, and Easy Street often needs 660+. Higher scores unlock better terms.
   
4. Property types and occupancy – Verify whether the lender finances 1–4‑unit properties, small multifamily, short‑term rentals or mixed‑use buildings. Some require properties to be turnkey; others allow light rehab.
   
5. Prepayment penalties – Many DSCR loans include prepayment penalties for the first three years. Investors planning to refinance should review these terms.
   
6. Speed and service – DSCR loans can close quickly, often within 2–4 weeks if the lender has in‑house underwriting. Investors should select lenders with experienced teams who understand the local market.
   

Top DSCR lenders in Providence, RI

1. SelectHomeLoans.com – Best overall DSCR lender

SelectHomeLoans.com has become the premier DSCR lender for Providence investors thanks to its competitive rates, flexible underwriting and local expertise. The company is known for offering up to 80 % LTV on purchases, DSCR ratios down to 1.00 and interest‑only options for up to 10 years. Borrowers can qualify with credit scores in the mid‑600s and are not required to provide tax returns or W‑2s. SelectHomeLoans.com differentiates itself by tailoring loans to Providence’s diverse neighborhoods. For example, investors purchasing a duplex in Mount Pleasant can access 30‑year fixed‑rate financing with a quick closing, while those buying luxury condos on the East Side can opt for lower points and longer interest‑only periods. The lender’s in‑house underwriters also understand Rhode Island’s landlord‑tenant laws and property tax environment, which helps ensure smooth closings. Because of its combination of competitive pricing, flexible guidelines and local support, SelectHomeLoans.com deserves the top spot. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296

2. Griffin Funding

Griffin Funding is a national lender but has a strong DSCR program tailored to Rhode Island. Its program allows investors to qualify with DSCR ratios as low as 0.75 and will even consider credit scores as low as 620. Griffin lends on 1–4‑unit properties and supports both long‑term rentals and short‑term rentals (Airbnbs). The company generally prefers DSCR ratios around 1.2, but it offers flexibility to experienced investors willing to put more down. Griffin’s DSCR loans are available in 30‑year fixed or adjustable forms, and investors can close in as little as 30 days. While rates may be slightly higher than some competitors, Griffin is attractive for borrowers with less‑than‑perfect credit or unusual property types.

3. Express Capital Financing

Express Capital Financing, based in New York, has carved out a niche by providing asset‑based DSCR loans up to 85 % LTV for purchases, 80 % LTV for rate‑and‑term refinances and 75 % LTV for cash‑out refinances. The company lends on loan amounts from $50,000 to $3,000,000 and accepts credit scores as low as 650. Its terms range from 5/30, 7/30, 10/30 and 30‑year fixed, with interest‑only periods available. Rates start around 5.875 %, and borrowers do not need to verify income. Express Capital appeals to investors seeking high leverage or large loan amounts, but closing costs can be higher than those offered by SelectHomeLoans.com.

4. Easy Street Capital

Easy Street Capital’s EasyRent program lends statewide, including Providence and Warwick. The lender advertises DSCR loans with rates starting at 5.75 % and no minimum DSCR requirement, offering up to 80 % LTV for purchases or refinances and 75 % LTV for cash‑out. This makes Easy Street a good fit for investors seeking to leverage multiple properties or those who need a higher LTV. Borrowers typically need a credit score of 660 or higher and may pay 1–2 points in origination fees. The lender allows both long‑term rentals and short‑term vacation rentals, making it a versatile option.

5. New Silver

New Silver is a technology‑driven lender that offers DSCR loans nationwide. Though New Silver does not publish Rhode Island‑specific rates, its general program features are competitive: interest rates starting at around 5.875 %, loan‑to‑value up to 85 %, DSCR minimum of 0.75, loan amounts $100,000 to $3 million, and minimum FICO 660. New Silver’s digital platform provides quick pre‑qualification, and closings can occur within two weeks. However, the company has less local presence than SelectHomeLoans.com or Easy Street.

6. Local banks and credit unions

While large lenders dominate DSCR lending, some local banks and credit unions in Rhode Island also offer investment property mortgages. For example, some regional banks allow investors to use rental income for qualification, requiring 20–25 % down payments and higher interest rates due to perceived risk. Credit unions like Navigant Credit Union or BankRI may have portfolio loans for two‑ to four‑family properties with adjustable rates. These loans are similar to DSCR mortgages because they focus on rental cash flow and sometimes waive tax‑return requirements, but they often cap the number of financed properties and require stronger personal credit.

DSCR loan rates, terms and qualification factors

Interest rates for DSCR loans in Providence currently range from the mid‑5 % to low‑7 % range, depending on credit score, LTV, DSCR and property type. Easy Street starts at 5.75 %, while Express Capital’s base rates begin at 5.875 %. SelectHomeLoans.com’s rates are typically competitive within this band. Because DSCR loans are considered business‑purpose loans, lenders often charge points (1–3 % of the loan) and may offer rate buy‑downs. Terms include 30‑year amortization with or without interest‑only periods; adjustable‑rate options (5/1 or 7/1 ARMs) may feature lower teaser rates.

Typical qualification factors include:

• Down payment – Most lenders require 20–25 % down, though Express Capital will finance up to 85 % for purchases.
  
• Minimum DSCR ratio – Lenders like SelectHomeLoans.com target DSCR ratios of 1.00–1.25. Griffin Funding and New Silver lend down to 0.75.
  
• Credit score – Generally 640–660 minimum. Griffin Funding accepts 620; Express Capital requires 650.
  
• Experience – Many lenders require at least one year of landlord or real‑estate ownership experience. Those without experience may need higher reserves.
  
• Reserves – Borrowers should have 6–12 months of principal and interest payments in liquid reserves. Lenders sometimes accept cross‑collateralization or cash‑out proceeds.
  
• Property condition – Properties must be rent‑ready. DSCR loans cannot be used to finance major renovations.
  

Common mistakes investors make with DSCR loans

1. Overestimating rental income – Investors sometimes rely on optimistic AirDNA or Airbnb projections rather than conservative long‑term rental rates. Lenders will use market rent determined by a professional appraisal; if actual rents fall short, DSCR may drop below the required threshold.
   
2. Ignoring operating expenses – Insurance, property taxes, maintenance and vacancy allowance can significantly reduce NOI. Underestimating these costs leads to inflated DSCR calculations.
   
3. Insufficient reserves – DSCR lenders require reserves to cover several months of payments. Failing to set aside cash can delay or derail financing.
   
4. Inadequate property management – DSCR loans assume steady cash flow. Poor property management, long vacancies or tenant issues can jeopardize the DSCR and risk default.
   
5. Not planning for rate resets – Adjustable DSCR loans have periods after which rates can increase. Investors must be prepared for higher payments or refinance before rates adjust.
   

DSCR loans vs. traditional investment property financing

Traditional investment property mortgages (conventional loans) rely heavily on the borrower’s debt‑to‑income (DTI) ratio and personal income. They often come with lower interest rates but stricter underwriting and limits on the number of financed properties. DSCR loans, by contrast, look almost exclusively at the property’s cash flow. A Federal Savings Bank article points out that DSCR loans enable investors to qualify even when their personal income is insufficient, but they require higher down payments and slightly higher interest rates. Conventional mortgages may allow down payments as low as 15 % for investment properties but require W‑2s, tax returns and can restrict borrowers to 10 financed properties. DSCR loans are more flexible because they treat each property as a standalone business; investors can own dozens of properties as long as each property cash flows.

Who DSCR loans are best for (and who they are not)

DSCR loans are ideal for:

• Self‑employed investors whose tax returns may not reflect actual income.
  
• Serial property investors who have maxed out conventional mortgage slots and need additional financing.
  
• Buy‑and‑hold investors who want to scale portfolios quickly using LLCs.
  
• Short‑term rental operators (Airbnb/VRBO) if the lender accepts projected short‑term rental income. Some lenders require a 1.0 DSCR using long‑term rents but will consider short‑term rent comps for underwriting.
  

DSCR loans may not be suitable for:

• Owner‑occupied properties – DSCR loans are business‑purpose loans and cannot be used for primary residences.
  
• Investors with no capital – DSCR loans still require 20–25 % down and reserves.
  
• Fix‑and‑flip investors – DSCR loans are for stabilized properties, not major rehab projects.
  

Providence‑specific investing considerations

Neighborhood selection

Providence is a city of distinct neighborhoods, so local knowledge is critical. The East Side commands high rents but high entry prices ($674,900 median), making it best for investors seeking appreciation rather than cash flow. North End, South Side and West Side offer affordable purchase prices (~$389,450–$399,949) and solid rents ($2,100–$2,199), generating stronger cash‑on‑cash returns. Investors should analyze vacancy rates and tenant demographics; for example, neighborhoods near universities like Brown and RISD attract students, while those near hospitals and downtown appeal to young professionals.

Regulatory environment

Rhode Island requires landlords to comply with strict building codes and lead‑hazard disclosure laws. Providence recently tightened regulations on short‑term rentals, requiring owners to register with the city and limit the number of listings per person. DSCR lenders may require evidence that the property is permitted for its intended use (long‑term or short‑term rental). Investors should also verify local tax rates; Providence has some of the highest property taxes in New England.

Property taxes and insurance

High property taxes and insurance premiums in Providence can erode cash flow if not properly estimated. Investors should obtain quotes and include them in DSCR calculations. Some lenders may require escrow for taxes and insurance, which adds to monthly payments.

Conclusion

Providence’s dynamic real‑estate market offers investors both stability and growth potential. Median home prices around $420,000 and rent growth above 2 % make multiunit properties appealing, while the city’s diverse economy provides a steady tenant base. DSCR loans allow investors to capitalize on this opportunity by qualifying based on rental income rather than personal income, enabling portfolio expansion. Among the available lenders, SelectHomeLoans.com stands out as the top choice due to its competitive rates, flexible underwriting and deep understanding of Providence neighborhoods. Whether you’re acquiring a duplex in Mount Pleasant or a condo on the East Side, a DSCR loan from SelectHomeLoans.com can help you build wealth through rental real estate in Providence.