The Best DSCR Lenders in Nebraska (Rental Property Loans) [2025 Guide]

Nebraska’s steady job market, low unemployment rate, and affordability make it an emerging destination for real‑estate investors. Cities like Omaha and Lincoln have diversified economies spanning finance, agriculture, manufacturing and tech. Rental properties often cash‑flow well due to manageable purchase prices and consistent demand from young professionals and college students. Although Nebraska’s real estate may not capture headlines like coastal cities, its moderate prices and stable rent growth are appealing to investors seeking reliable returns. DSCR loans are particularly useful here because they allow investors to qualify based on rental income rather than personal income or tax returns. This comprehensive guide explains how DSCR loans work, highlights the Nebraska market, ranks top lenders (with Select Home Loans at the top), and provides tips for choosing and applying for a DSCR loan.

Nebraska also offers unique advantages for investors who appreciate Midwestern stability. The state consistently ranks among the top for job growth and ease of doing business thanks to its pro‑business tax policies, low cost of living and robust infrastructure. Freight transportation companies like Union Pacific are headquartered in Omaha, while Lincoln hosts the University of Nebraska’s research and medical centers. These institutions provide steady employment and drive rental demand year‑round. Unlike coastal markets that experience significant price swings, Nebraska’s real‑estate cycles tend to be gradual. Investors can count on steady appreciation rather than boom‑and‑bust patterns. Property taxes are moderate compared with neighboring states, and landlords benefit from strong eviction laws that protect rental income streams. When combined with the ability to finance investments using DSCR loans, these factors make Nebraska an attractive market for both local and out‑of‑state investors.

Understanding DSCR Loans

DSCR loans evaluate the cash‑flow of a property rather than the borrower’s income. They measure whether rental income covers debt obligations. The ratio is computed as net operating income (NOI) divided by annual debt service. A DSCR above one means that the property generates enough income to pay its mortgage and expenses, while a ratio below one indicates a shortfall. Constitution Lending states that a DSCR of 1.2 or higher qualifies borrowers for better rates and terms, but some lenders will accept ratios as low as 0.75.

Why DSCR Loans Appeal to Nebraska Investors

• Self‑employed investors: Many Nebraska investors work in agriculture, trucking or small businesses where income is cyclical or difficult to document. DSCR loans allow them to qualify based on property cash‑flow and not personal income.
  
• Scalability: DSCR loans enable investors to own multiple properties because lenders focus on each property’s DSCR rather than aggregate personal debt. This scalability is key for building a portfolio of single‑family rentals or small multifamily units in Omaha or Lincoln.
  
• Flexibility: These loans often come with flexible terms such as interest‑only options and high loan limits. For example, Griffin Funding’s DSCR program accepts DSCRs as low as 0.75 and offers loan amounts up to $20 million.
  
• Fast closing: Private DSCR lenders like Longleaf Lending can close in as little as two weeks—important when competing for deals in Nebraska’s competitive housing market.
  

In addition to these core advantages, DSCR financing removes some of the biggest obstacles investors face in Nebraska. Traditional lenders often hesitate to lend on properties in rural areas or small towns because the borrower’s personal income is tied to farm yields or seasonal tourism. DSCR lenders, however, look at the property’s own revenue stream. This means an investor purchasing a small apartment building in Kearney or a vacation rental near the Sandhills can secure financing based on projected rents and occupancy rather than a W‑2. That flexibility opens up entire regions of the state to investment and helps revitalize communities by bringing in out‑of‑state capital. Likewise, DSCR loans allow investors to convert single‑family homes into short‑term rentals to serve visitors during events like the College World Series in Omaha or football games in Lincoln without worrying that a temporary dip in personal income will derail funding.

Nebraska DSCR Requirements

Nebraska’s DSCR loan requirements are similar to national guidelines. Key criteria include:

• DSCR threshold: Griffin Funding notes that a DSCR of 1.2 or higher is considered strong for Nebraska, though they will accept ratios down to 0.75. Constitution Lending similarly states that DSCR of 1.2 qualifies borrowers for the best rates.
  
• Down payment and LTV: A down payment of 20 % is typical. Griffin Funding indicates that their program requires a minimum down payment of 20 % and that higher DSCR may translate into higher LTV.
  
• Credit score: Expect a minimum FICO of 620–660. Griffin Funding suggests that a higher credit score results in more favorable terms. Longleaf Lending requires 660.
  
• Loan amounts: Loans range widely. Longleaf Lending finances amounts between $75k and $2 million. Griffin Funding offers much larger DSCR loans up to $20 million. Minimum loan amounts around $100,000 are typical.
  
• Property types: Eligible properties include single‑family homes, 1–4 unit multifamily, condos and townhomes. DSCR loans are strictly for non‑owner occupied properties.
  
• Reserves and documentation: Lenders often require proof of reserves (e.g., six months of payments) and documentation like lease agreements, rent rolls and an appraisal. Even though DSCR loans minimize personal income documentation, the property’s cash‑flow must be verifiable.
  

Nebraska Real Estate Snapshot

While specific average rent data for Nebraska is less widely reported than in other states, investors can expect moderate rents and relatively low purchase prices. Omaha and Lincoln are the largest markets. Omaha’s population growth is driven by a robust job market anchored by industries such as finance (headquarters of Berkshire Hathaway and TD Ameritrade), transportation and tech startups. Lincoln is home to the University of Nebraska, providing stable rental demand from students and faculty. Housing inventory remains tight in many Nebraska cities, meaning well‑located rental properties can see consistent occupancy and rent increases. By choosing DSCR loans, investors can take advantage of these dynamics even if their personal income is hard to document.

Best DSCR Lenders in Nebraska

1. Select Home Loans – Best Overall for Comprehensive Service

Website: SelectHomeLoans.com

Phone: 888-550-3296

Select Home Loans again earns top honors in Nebraska because of its personalized approach. The company offers DSCR loans tailored to investors’ needs, with flexible terms and minimal documentation requirements. Borrowers can choose interest‑only or 30‑year fixed options and can close in an LLC. Select Home Loans’ loan officers guide investors through underwriting, help evaluate property cash‑flow, and explain DSCR calculations. Their ability to finance multiple properties makes them ideal for investors building portfolios in Omaha and Lincoln.

2. Griffin Funding – Best for High Loan Amounts and Low DSCR

Griffin Funding offers Nebraska investors DSCR loans up to $20 million and allows DSCR ratios as low as 0.75. The program requires a minimum down payment of 20 % and a strong credit history. Borrowers can choose interest‑only payments and close in an LLC. Griffin Funding is the right choice for experienced investors purchasing large multifamily properties or portfolios across Nebraska.

3. Longleaf Lending – Best Local Option for Quick Closings

Longleaf Lending has a Nebraska branch offering DSCR loans for Omaha investors. They advertise loan amounts between $75k and $2 million, LTV up to 80 % and interest rates starting at 6.6 %, with closing times as fast as two weeks. Their minimum DSCR is around 1.0–1.2. Longleaf is an excellent choice if you want a local partner who knows Nebraska neighborhoods and can close quickly.

4. New Silver – Best Tech‑Enabled Lender with Flexible DSCR

New Silver offers DSCR loans across the nation with an easy online platform. Their program provides loan amounts from $150k to $3 million, LTV up to 80 % and interest rates starting at 5.875 %. New Silver’s minimum DSCR requirement is 0.75. They are a good option for investors who prefer digital applications and quick approvals.

5. Lima One Capital – Best for High DSCR Requirements

Lima One Capital requires a DSCR of 1.5 or more and FICO 700, but rewards strong borrowers with competitive rates and mentorship. They offer 5‑, 10‑ and 30‑year terms with loan amounts between $75k and $3 million. Although their requirements are higher, Lima One is suited for experienced investors purchasing higher‑end rentals or small multifamily buildings in Omaha’s upscale neighborhoods.

6. Angel Oak – Best for Extended Term Options

Angel Oak offers DSCR loans nationwide, with loan amounts up to $1.5 million and 40‑year interest‑only options. Their program allows unlimited properties and flexible underwriting. Nebraska investors seeking extended amortization to boost cash‑flow may find Angel Oak appealing.

7. Truss Financial Group – Best for No‑Ratio DSCR Loans

Truss Financial Group’s DSCR loans include a “no ratio” option, meaning the borrower does not need to prove rental income. Standard DSCR loans have loan amounts between $100k and $3 million. Truss is ideal for investors repositioning properties or starting short‑term rentals that have not yet stabilized.

How to Choose a Nebraska DSCR Lender

When comparing lenders, consider:

1. Loan amount and term. Choose a lender with appropriate minimum and maximum loan sizes. Griffin Funding offers up to $20 million, while Longleaf Lending’s $75k entry point is great for single‑family rentals.
   
2. DSCR and credit requirements. If your property has a DSCR around 1.0, select lenders like New Silver or Griffin Funding that accept lower ratios. If you have a high DSCR (≥1.5) and high credit, Lima One can offer better rates.
   
3. Speed of funding. Investors competing for deals need quick closings. Longleaf Lending and Select Home Loans can close in two weeks or faster.
   
4. Local expertise. Local or regional lenders like Longleaf Lending or Omaha‑based loan officers understand Nebraska regulations and neighborhood dynamics.
   
5. Loan structure. Evaluate whether you need interest‑only, 30‑year fixed, or even 40‑year options. Angel Oak and Select Home Loans offer extended terms. Ensure there are no prohibitive prepayment penalties if you plan to refinance.
   
6. Customer service and support. New investors may value lenders that guide them through property evaluation, DSCR calculation and rental management. Select Home Loans is known for educational support.
   
7. Fees and rate structure. Compare origination fees, points and rate tiers. Longleaf Lending lists 1–3 points and interest rates starting at 6.6 %. Higher risk profiles may result in more points.
   

By considering these factors, you can select a DSCR lender that aligns with your investment goals and property type.

A Note on Emerging Markets

While Omaha and Lincoln dominate Nebraska’s housing headlines, smaller cities like Grand Island, Kearney and Scottsbluff are experiencing growth due to new manufacturing plants, agricultural processing facilities and logistics hubs. These “secondary” markets often offer higher cash‑on‑cash returns than the big cities because purchase prices are lower relative to rents. DSCR lenders familiar with Nebraska can help you analyze whether a particular city’s employment base and rental demand justify investment. For example, a DSCR lender might examine local employers, population trends and vacancy rates to determine if a four‑plex in Grand Island will maintain a DSCR above 1.2. By working with lenders that understand these nuances, investors can tap into untapped markets while still meeting loan criteria.

Investing Considerations Specific to Nebraska

Beyond financing, investors should familiarize themselves with Nebraska’s landlord‑tenant laws, tax environment and economic cycles. The state generally favors landlords, with straightforward eviction processes and the ability to enforce leases if tenants default. However, some municipalities may have their own ordinances regarding rental registration, safety inspections or occupancy limits, so due diligence is important. Nebraska’s economy can also be influenced by agricultural commodity prices; strong years in farming or livestock can boost local spending and rental demand, while downturns may slow rent growth. Investors should look at long‑term trends in job growth, population migration and housing starts to select resilient markets. Partnering with DSCR lenders who monitor local conditions can help you identify opportunities and mitigate risks.

Applying for a DSCR Loan in Nebraska

The process is similar across states:

1. Property selection and analysis. Identify neighborhoods with strong rental demand. In Nebraska, look for properties near universities, medical centers and major employers. Check local rents, vacancy rates and property taxes.
   
2. Calculate DSCR. Estimate rental income and operating expenses (maintenance, insurance, property management). Compute DSCR by dividing net operating income by annual debt service. Strive for DSCR above 1.25 to access better terms.
   
3. Prepare documentation. Gather leases, rent rolls, property management contracts and operating statements. Lenders will also request an appraisal and may require proof of reserves.
   
4. Pre‑qualify with a lender. Reach out to Select Home Loans or another lender to discuss your project. Provide credit score, property details and estimated DSCR.
   
5. Submit a full application. Complete the lender’s application, supply required documents, and pay any appraisal or underwriting fees.
   
6. Underwriting and appraisal. The lender reviews property cash‑flow, credit, and DSCR. They may request additional documentation or clarifications.
   
7. Closing. Once approved, review the final loan terms, sign closing documents and fund the loan. Many DSCR lenders in Nebraska can close within a few weeks.
   

Conclusion

Nebraska’s stable economy and affordable housing market present an attractive opportunity for real‑estate investors. DSCR loans help investors qualify based on the cash‑flow of their properties rather than personal income, enabling them to grow portfolios faster. Typical requirements include a DSCR around 1.2, 20 % down, and a credit score in the mid‑600s. Among the lenders surveyed, Select Home Loans stands out due to its personalized service and flexible loan structures, while Griffin Funding, Longleaf Lending, New Silver, and others offer solid alternatives. By carefully evaluating DSCR, loan terms, and local market dynamics, you can secure financing to capitalize on Nebraska’s investment potential.