DSCR Loans in Rhode Island

Rhode Island's tight rental market, coastal tourism, and proximity to Boston create niche DSCR opportunities in America's smallest state.

$425K
Median Home Price
$1,800/mo
Median Monthly Rent
0.88x
Est. DSCR at Median
70+
Lenders in Network
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MARKET OVERVIEW

Rhode Island DSCR Loan Market

Rhode Island is a compact but compelling DSCR market. Providence anchors the state with Brown University, RISD, and a growing tech sector. The state's small size means tight housing supply, supporting both rents and values. Newport's coastal location drives STR tourism. Rhode Island's property taxes are above average at 1.40%, making multifamily the preferred strategy. The state's proximity to Boston creates spillover demand from commuters and professionals seeking lower costs. Providence's multifamily stock (triple-deckers) is particularly well-suited for DSCR investors.

MODERATE REGULATIONS

Top Investor Cities

  • Providence
  • Warwick
  • Cranston
Effective Property Tax Rate
1.40%

Monthly tax on $425,000 property: $496/mo

REQUIREMENTS

DSCR Loan Requirements in Rhode Island

Licensing & Regulatory

Loans in Rhode Island are originated by [Broker A], NMLS# [XXXXXX], licensed in Rhode Island.

All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.

Common Property Types

  • Small Multifamily (2-4 Units)
  • Single-Family Rentals

Down Payment & LTV

  • Standard DSCR: 20% minimum down (80% LTV)
  • No-Ratio DSCR: 30% minimum down (70% LTV)
  • 30%+ down unlocks No-Ratio DSCR programs and broader lender access

Appraisal & Rent Schedule

  • Form 1007 rent schedule required with appraisal
  • Appraisal estimates market rent for DSCR calculation
  • STR properties: AirDNA projected income accepted

DEAL EXAMPLE

Sample DSCR Deal in Providence, Rhode Island

3-Unit Multifamily

Providence, Rhode Island

DSCR
Purchase Price $465,000
Down Payment 25% ($116,250)
Loan Amount $348,750
Loan Type 30-Year Fixed DSCR

Monthly Breakdown

Principal & Interest $2,321
Property Tax $543
Insurance $215
Total PITIA $3,079
Monthly Rent $3,600
DSCR Ratio
1.17x
Monthly Cash Flow
+$521
Close Time
25 days
DSCR = $3,600 ÷ $3,079 = 1.17x

This borrower closed in 25 days with no income verification, no tax returns, and no employment check.

Results may vary. This is a representative example, not a guarantee of future performance.

This deal example is for illustrative purposes only and is based on representative scenarios across our broker network. Actual loan terms, approval, and closing depend on your full credit profile, property details, appraisal, and the matched lender's specific guidelines. This is not a loan offer or commitment to lend.

FREQUENTLY ASKED

DSCR Loan Questions for Rhode Island Investors

DSCR loans in Rhode Island require a minimum 660 credit score, 20% minimum down payment, and non-owner-occupied status. No income docs or tax returns needed. Providence's triple-decker multifamily stock is ideal for DSCR investing.

Rates start from 5.99% for 740+ FICO with 35%+ down. Most RI investors see rates between 6.50% and 7.75%.

Yes. Newport is Rhode Island's premier STR market. Block Island also attracts seasonal visitors. Our STR DSCR program uses projected income to qualify. Check local regulations.

Rhode Island's effective property tax rate is approximately 1.40%. On a $465,000 property, that's about $543/month. The multifamily strategy is essential: 3-unit properties with combined rents offset the higher taxes.

Yes. DSCR loans have no owner-occupancy requirement. Rhode Island's proximity to Boston attracts regional investors.

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Loans in Rhode Island are originated by [Broker A], NMLS# [XXXXXX], licensed in Rhode Island. is not affiliated with DSCRBroker.com except as a participating broker in our matching network. All lending decisions and terms are determined solely by the matched broker and their wholesale lending partners.