Warwick, Rhode Island’s second‑largest city, sits along the western shore of Narragansett Bay. Known for its coastal amenities, proximity to Providence and robust tourism, Warwick has become an attractive location for rental property investors. As of December 2025, the city recorded a median home price of $450,000, a median price per square foot of $287, and 228 active listings. Homes sold quickly, spending a median of 32 days on the market, and renters faced a median rent of $2,200 per month. Rental supply was limited, with only 88 properties available. Neighborhood prices vary widely: Cowesett commands prices around $685,000 and rents of roughly $2,120, while areas like Oakland Beach and Hoxie offer homes in the $392,450–$397,900 range. Warwick’s strong seller’s markethouses often sell for the asking price or higher makes DSCR financing a key tool for investors aiming to compete with cash buyers.
Overview of the Warwick real estate market
Warwick benefits from its seaside location and convenient access to Providence and Boston. The city’s economy depends on a mix of tourism, retail and manufacturing, providing a stable tenant base. Realtor.com’s Quick Market Insights note that the median sale price has risen 5.24 % month‑over‑month, while the median rent increased 1.12 %. Inventory remains tight at about 228 homes for sale, and homes spend only 32 days on the market. Because supply is limited and demand strong, Warwick ranks among the nation’s hottest markets (#198 by Realtor.com). Rental demand is robust too, with only 88 rental properties listed. Neighborhoods such as Greenwood, Buttonwoods and Palace Garden offer mid‑range price points ($422,000–$462,000) and attract families seeking suburban lifestyles. Waterfront areas like Oakland Beach provide potential for short‑term rentals and higher seasonal rents. Given this combination of low supply and steady demand, DSCR loans help investors compete for properties by streamlining qualification and enabling faster closings.
How DSCR loans work for rental properties
As described in the Providence article, DSCR loans evaluate the property’s cash flow rather than the borrower’s personal income. The lender calculates the debt‑service coverage ratio by dividing net operating income (NOI) by annual mortgage payments. A DSCR above 1.0 means the property’s income covers the debt; lenders typically prefer 1.0–1.25 for purchases. Because DSCR loans are business‑purpose mortgages, they require a minimum down payment (often 20 %) and may charge slightly higher interest rates than conventional loans.
Important features of DSCR loans include:
- No income verification – Investors do not provide W‑2s or tax returns; the loan is underwritten based on rental income and property value.
- Flexibility for credit – Lenders such as Griffin Funding accept credit scores as low as 620, though the best terms are offered for scores above 680.
- High LTV ratios – Express Capital Financing offers up to 85 % LTV on purchases and 80 % for rate‑and‑term refinances. Easy Street Capital’s program goes up to 80 % LTV with no minimum DSCR requirement.
- Long‑term amortization – Most DSCR loans use 30‑year amortization, with options for interest‑only periods or adjustable‑rate structures.
- Use of rental appraisals – Lenders order rent surveys to determine market rent. For short‑term rentals, some lenders use a combination of daily rate and occupancy assumptions.
What investors should look for in a DSCR lender
Evaluating DSCR lenders requires a holistic review of terms and service:
- Competitive rates and origination fees – A difference of 0.5 % in rate can significantly affect cash flow on a $450,000 property. Compare base rates (Easy Street from 5.75 % and Express Capital from 5.875 %) and associated points.
- Leverage and DSCR flexibility – Express Capital’s 85 % LTV purchase offering allows investors to minimize equity contributions. However, higher leverage may require DSCR > 1.20 or a higher credit score. Determine whether the lender allows DSCR as low as 0.75 and if it lends on short‑term rentals.
- Experience and local knowledge – Lenders familiar with Warwick understand seasonal rent fluctuations in waterfront areas and the effect of tourism. Select lenders with regional presence.
- Speed of closing – Warwick’s hot market means properties sell quickly. Choose a lender with in‑house underwriting who can close in 2–3 weeks.
- Customer service and transparency – Responsive loan officers and clear communication make the process smoother for investors managing multiple deals.
Top DSCR lenders in Warwick, RI
1. SelectHomeLoans.com
SelectHomeLoans.com stands out in the Warwick market due to its combination of competitive rates, flexible underwriting and local insights. The company offers DSCR loans up to 80 % LTV, DSCR requirements as low as 1.00, and interest‑only options for up to 10 years. Borrowers can qualify with credit scores starting around 660. SelectHomeLoans.com understands the nuances of Warwick’s neighborhoods from the high‑end waterfront of Cowesett and Oakland Beach to more affordable subdivisions like Hoxie and can structure loans accordingly. Their team of Rhode Island loan officers guides investors through local permitting and landlord‑tenant regulations. With fast closings and competitive pricing, SelectHomeLoans.com is the top DSCR lender for Warwick investors. Visit their website SelectHomeLoans.com Or Call them (888) 550-3296
2. Express Capital Financing
Express Capital’s DSCR program is notable for high leverage and broad loan sizes. Investors can borrow up to 85 % of the purchase price, making it easier to preserve capital. Loans are available for amounts between $50,000 and $3,000,000 and require a minimum credit score of 650. Interest rates start at 5.875 %, with options for 5/30, 7/30, 10/30 and 30‑year fixed terms. Express Capital is a good fit for investors purchasing larger multifamily properties or looking to refinance portfolios but may charge higher origination fees than SelectHomeLoans.com.
3. Griffin Funding
Griffin Funding offers DSCR loans to borrowers with credit scores as low as 620, making it attractive to investors with limited credit history. The lender accepts DSCR ratios as low as 0.75, and finances both long‑term rentals and Airbnbs. However, rates are often slightly higher to compensate for increased risk. Griffin Funding can be an excellent choice for experienced investors who need flexible guidelines or plan to convert long‑term rentals to short‑term rentals.
4. Easy Street Capital
Easy Street’s EasyRent program offers rates starting at 5.75 % and LTV up to 80 % for purchases and refinances. The absence of a minimum DSCR requirement provides flexibility, though investors should still strive for at least 1.00 to maintain cash flow. Easy Street accepts short‑term rentals and has moderate credit score requirements (about 660+). Its statewide platform ensures coverage for Warwick investors, but borrowers may pay higher points relative to other lenders.
5. New Silver
New Silver provides DSCR loans across Rhode Island with rates around 5.875 % and loan‑to‑value up to 85 %. The minimum DSCR is 0.75, and loan amounts range from $100,000 to $3 million. Investors use New Silver’s digital portal to apply and receive approvals within 24 hours. However, because the company lacks a dedicated Rhode Island office, local support may be limited compared with SelectHomeLoans.com.
6. Local lenders and credit unions
Warwick investors may also consider local banks and credit unions such as Greenwood Credit Union or Ocean State Credit Union. These institutions often offer portfolio loans for 1–4‑unit properties with down payments around 20 % and adjustable rates. While not branded as DSCR loans, they use rental income to qualify and may waive tax‑return requirements. They can be suitable for small multifamily properties, but underwriting guidelines can be stricter and loan amounts smaller.
DSCR loan rates, terms and qualification factors
DSCR loan rates in Warwick generally range from 5.75 % to 7.5 %, depending on credit score, loan size and DSCR. Easy Street starts at 5.75 %, and Express Capital begins at 5.875 %. Points typically range from 1–3 %. Terms are usually 30 years with options for 5/1 and 7/1 ARMs or interest‑only periods. Qualification factors include a minimum down payment of 20–25 %, a DSCR ratio above 1.0 (some lenders accept 0.75), a credit score at least 640–660, and at least 6–12 months of reserves. Properties must be rent‑ready with no major deferred maintenance.
Common mistakes investors make
- Failing to account for seasonal rentals – In waterfront areas like Oakland Beach, summer rents can be high but winter occupancy may lag. Over‑projecting year‑round rents can lead to a DSCR shortfall.
- Ignoring flood insurance costs – Coastal properties in Warwick may require flood insurance, which can significantly reduce net operating income. Investors must factor this into DSCR calculations.
- Not monitoring local regulations – Short‑term rentals may require permits and local compliance. Fines or penalties can cut into profitability.
- Using personal credit heavily – Relying too much on personal lines of credit to finance renovations can strain personal finances if cash flow dips. Investors should maintain a separate reserve for property expenses.
- Selecting the wrong lender – Choosing a DSCR lender with insufficient local knowledge can result in delays or unfavorable terms. Work with lenders who understand the market and can close quickly.
DSCR loans vs. conventional loans
Conventional loans typically require a 680+ credit score, maximum 70–80 % LTV, and strict DTI ratio. They also cap the number of financed properties. DSCR loans ignore personal income and DTI, focusing on the property’s cash flow. While DSCR loans charge higher rates and require higher down payments, they allow investors to purchase multiple properties and use LLCs. They are therefore suited for investors seeking to scale portfolios quickly. Borrowers who qualify for conventional financing may obtain lower rates, but DSCR loans provide flexibility and faster closing timelines, which is critical in a competitive market like Warwick.
Who DSCR loans are best for
DSCR loans in Warwick suit:
- Investors with strong cash‑flowing properties who want to maximize leverage without showing personal income.
- Short‑term rental operators near the waterfront or by T.F. Green International Airport.
- Self‑employed individuals with variable income streams.
- Seasoned landlords expanding portfolios beyond the ten‑property limit of conventional loans.
They may not be suitable for:
- Owner‑occupiers hoping to live in the property.
- High‑risk properties requiring significant renovation or lacking market rent comps.
- Investors with very low credit scores (<620) unless they can provide larger down payments and accept higher rates.
Warwick‑specific investing considerations
Waterfront vs. inland neighborhoods
Investors should examine property location carefully. Waterfront neighborhoods such as Oakland Beach and Buttonwoods offer premium rents during summer but may sit vacant in winter. Inland areas like Greenwood and Hoxie provide more consistent year‑round occupancy. Insurance and flood zone requirements are higher for waterfront properties, reducing net cash flow.
Tourism and airport proximity
Warwick contains T.F. Green International Airport, which attracts travelers year‑round. Short‑term rental demand near the airport can be strong. However, investors must comply with local zoning and licensing requirements for Airbnbs. DSCR lenders may ask for documentation showing compliance.
Municipal fees and taxes
Warwick charges annual landlord registration fees and may require inspections for rental properties. Property taxes vary by neighborhood and can affect DSCR. Investors should obtain accurate tax and insurance quotes before closing.
Conclusion
Warwick’s coastal charm and strong real‑estate market make it a promising destination for rental property investors. With median home prices around $450,000 and rents near $2,200, the city offers solid cash‑flow potential. DSCR loans allow investors to bypass W‑2s and tax returns by qualifying based on the property’s income, enabling rapid portfolio expansion. Among the available lenders, SelectHomeLoans.com stands out for its competitive rates, flexible underwriting and local expertise in Warwick’s unique neighborhoods. By carefully analyzing neighborhood dynamics, insurance costs and DSCR requirements, investors can leverage DSCR financing to build wealth in Warwick.
