Oklahoma DSCR Loans | Visio Lending

When considering an investment with a DSCR loan, you may be surprised to find that Oklahoma balances a steady housing market with affordable rental rates; it's a perfect place to add rental properties to your real estate portfolio.

Visio Lending offers Oklahoma DSCR Loans with competitive rates and affordable loan payments to help borrowers take advantage of growing real estate investment opportunities in the Sooner State. Their financial experts can help you get set up with the best loan option for your purchase.

Why Invest with Oklahoma DSCR Loans?

Oklahoma has been experiencing a steady growth in population over the past decade, with Oklahoma City ranking #19 of the 20 fastest-growing cities in America. Oklahoma is home to some truly stunning landscapes as well as a wealth of fun activities for families and job opportunities for all working ages.

Oklahoma has a rich and storied history, being one of the first frontier lands opened for settlement. But they have grown alongside the rest of the nation.

Metro areas like Tulsa and Oklahoma City have been showing steady economic growth, while more rural towns make for a great escape from the hustle and bustle.

Why Real Estate Investors Prefer DSCR Loans in Oklahoma

When a real estate investor is looking at financing a new rental property, the application process for traditional loans tends to slow them down. Traditional loans have stringent requirements for personal income verification, such as a full credit report, pay stubs, W2s, or tax returns, as well as strict guidelines for the underwriting process.

Since many investors have multiple income streams, it can be time consuming for their financing to be based on their personal income. Instead, DSCR lenders determine the eligibility for Oklahoma DSCR loans by gathering proof that the rental property will have sufficient cash flow to cover loan payments and other fees like insurance.

To calculate DSCR, lenders divide the monthly expenses by the monthly rent. If the DSCR is greater than 1, then the rental property has sufficient cash flow to cover expenses.

Another reason investors prefer DSCR loans in Oklahoma is because they have a higher Loan-to-Value ratio, meaning borrowers can provide a smaller down payment at the cost of a slightly higher interest rate.

Most lenders require a DSCR of 1.25 and a minimum credit score of 640, but they can be more flexible with loan terms. A lender may also choose to offer a higher loan amount based on the property's ability to generate income; the highest loan amounts on record reach up to $5 million.

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Understanding Oklahoma's Housing Market

Zillow reports that Oklahoma's current average home value is $198,995, which is up 5.9% from last year. Their Market Overview goes on to reveal:

1.000 Median sale-to-list ratio (as of June 30, 2023)
31.4% of sales over list price (as of June 30, 2023)
45.0% of sales under list price (as of June 30, 2023)
12 Median days to pending (as of July 31, 2023)

Oklahoma DSCR loans help investors take advantage of low purchase prices and fair rent prices to build a real estate portfolio in a stable yet affordable market. It's a win-win scenario for renters and landlords.

Tips for Finding an Investment Property for a DSCR Loan

Real estate investing can be a lucrative financial strategy with the right approach. When it comes to choosing potential rental properties, networking with local real estate agents is an excellent idea.

DSCR mortgage loans depend on a property's cash flow, and a local agent will have real-time data on the current competitive rates in their area, helping you calculate potential rental income from investment properties.

Oklahoma's Rental Property Market

Oklahoma has a median rent of $1,370, but investors should look at cities of interest for a more accurate estimate of what kind of net income to expect with their purchase. This is less than the average median across the nation, but low housing prices help make up the difference in cash flow.

It makes for an affordable market despite the current rampant inflation, allowing for a strong DSCR and the opportunity to reinvest profit or build a cash reserve.

On average, Oklahoma households are pretty balanced between owners and renters: 40% of households rent. As Oklahoma's population continues to grow, so, too, will demand for rental properties.

Top 5 Hot Spots for Oklahoma Invesment Properties with a DSCR Loan

Oklahoma City
Moore City
Midwest City
Norman
Tulsa

Oklahoma's Landlord-Tenant Laws

Oklahoma's laws are fairly balanced between landlord and tenant, but they do favor landlords overall. It's important for investors, whether local or foreign nationals, to understand their rights and responsibilities when it comes to renting out residential rental properties.

Little beats the advice of a local real estate lawyer or property management company, but investors can get a head start by educating themselves about current Landlord-Tenant laws in Oklahoma.

Oklahoma's Tourism Industry

The Oklahoma tourism industry accounted for $10 billion in direct spending in 2021, supporting over 96,000 industry jobs. Oklahoma was one of the first states to adjust to pandemic restrictions while still offering a wealth of outdoor activities for folks looking to safely escape their homes for a while.

If you'd like to jump into this lucrative market with a low-interest rate, get in touch with Visio Lending, the premier DSCR loan provider; you just need your credit score, a great property, and a down payment to qualify.

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