DSCR Loan Oregon

Last updated: December 9, 2024

What areas in Oregon do you serve?

Oregon experienced robust population growth of 10.6% between 2010-2020, well above the national rate. The influx was driven by strong job growth and inmigration from other states, particularly to the Portland and Bend metro areas. Major employers like Intel, Nike, Providence Health Systems, and others fueled economic expansion. However, housing construction struggled to keep up with demand statewide. This supply/demand imbalance has created a very favorable environment for rental investors across many Oregon markets.

• 97233 - Part of the Hillsboro suburb of Portland near Intel's major campuses. Apartment occupancies routinely over 97% amid very limited new supply.
• 97702 - Located in Bend, which saw a 30% population boom. Rent growth consistently in the 8-10% range due to severe housing shortages.
• 97303 - An affluent area of the Portland metro, vacancy rates under 3% and double-digit rent growth over the past 3 years.

Portland, OR Metro Area

The overall Portland metro area added over 230,000 residents in the 2010s, an 11% increase. The market is anchored by major employers like Intel, Nike, Providence Health Systems, and others in the technology, athletic, and healthcare industries. However, housing production fell well behind the pace of population and job growth.

• 97123 - Part of the desirable Westside suburbs of Portland. Near Nike HQ and a major healthcare corridor. Extremely land-constrained.
• 97211 - Close-in Portland neighborhood near Downtown with limited new apartment supply and steadily increasing rents.
• 97070 - Suburb on the west side experiencing a massive influx of new residents from out of state amid job growth but little rental construction.

Salem/Eugene, OR Area

The state capital region around Salem grew over 11% in population from 2010-2020, while Eugene saw a 9% increase. State government, education, manufacturing, and agriculture are economic drivers. Housing starts improved but still lagged behind robust population growth.

• 97301 - Close to downtown Salem amid strong job growth. Rents up over 30% in the last 5 years due to extremely limited apartment inventory.
• 97305 - Residential areas of Eugene near the University of Oregon. Student population plus relocation from Portland/California created tight market.
• 97303 - Affluent Wilsonville/Tualatin area of Portland's Southwest suburbs. Virtually no vacant rental units available in this high-income zip code.

Bend, OR Area

No area of Oregon saw more extreme housing shortages than Bend, which grew over 30% in the 2010s. The market was unprepared for the massive influx of new residents relocating from California and other states.

• 97701 - Downtown Bend has seen annual rent spikes of 12-15% over the past 5 years amid essentially zero vacancy.
• 97702 - As mentioned, this zip saw years of 8-10% annual effective rent growth before new supply finally began arriving.
• 97707 - Outlying Bend area near the Industrial District. Build-to-rent may be an attractive opportunity amid continued housing shortages.

Additional areas in Oregon

A few other Oregon markets to watch for potential opportunities:

• 97459 - Medford/Southern Oregon grew in population but had very little residential construction.
• 97504 - The Corvallis/Albany area is home to Oregon State University and solid job growth. Limited rental inventory.
• 97838 - Pendleton/Eastern Oregon is land-constrained with increasing housing demand from California inmigration.

With extremely robust population growth that easily outpaced housing production across most of Oregon's major metros, rental investors and builders have an opportunity to satisfy market demand.

Can you lend on properties worth less then $100k?

In short, no, appraisal as is value must come in at above 100k. We can only lend on properties that are less then $100k if they are in a portfolio with other properties and the portfolio's total as-is value on the appraisal is above $250k. In order to qualify for our loans, the property must appraise for at least $100k as-is at the time of the appraisal, however, total loan amount may be less then 100k, minimum loan amount is $55k.

Are you able to lend on rural properties?

We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our Rural Designation Search Tools. The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as not rural for it to be eligible for our funding. Use these instruction to find out if your property is considered rural

Do I need to have my property insured to qualify for funding?

Yes, but if you don't already have insurance, we can roll it into the lending process with no extra charge or effort to you. Our insurance team works with thousands of carriers and is intimately familiar with the insurance requirements of your loan. They will be able to ether talk to the agent of your choice or find the most competitive offer without our network of carriers to complement your loan with no extra effort or expense to you. If you already have insurance, you should get an instant quote to see if we can offer you a more competitive rate and save you thousands of dollars over the lifetime of your policy. Get you instant insurance quote here.

How Do DSCR Loans Work in Oregon?

The overall process of getting a DSCR Loan in Oregon is approximately as follows. You submit an application for a loan (you can get started on your loan with an instant quote) answering 14 questions about your property. An instant quote will tell you if you qualify for the loan in under 1 minute of your time. It will also show you the a preliminary interest rate and loan amount. Once you select desired LTV (which can be changed later), your quote will be converted to a Loan File for processing purposes.

You will have to submit documents as part of your Loan File for underwriting. Documents we may ask for will include personal and property documents such as purchase contracts, current leases, borrowing entity documents, deeds, title work (we will engage a title company or an attorney on your behalf to draw up these documents), background and credit reports (that we will order), bank statements for liquidity verification as well as other documents that may be applicable to your specific deal. Full list of requirements can be found here in DSCR loan requirements.

We will also handle all the aspects of scheduling and appraisal for you. Please note that we have a promotion, where new clients receive a 100% refund at closing for their appraisal and existing clients forever get a 50% refund for their appraisal at closing as our way to say thank you for allowing us to partner with you! Once all the loan documents are submitted, the Loan File goes through underwriting, at which point the underwriting committee may ask for additional documents depending on their discretion. Once the committee receives all the documents and approves the file, closing can be scheduled.

The closing, will be handled by the title company or at the office of closing attorney. Once closing is complete, funds will be wired. Post closing, the loan will be entered into servicing and you will receive information regarding setting up auto-pay or other options that may be available for your loan depending on the specific servicer's capabilities.

How to get a DSCR Loan in Oregon?

The easiest way to start your Oregon DSCR loan is to click the start button next to "apply for DSCR loan" banners at the top or bottom of this page. OfferMarket's team has expansive experience working with real estate investors across Oregon.

What are the requirements for a DSCR loan in Oregon?

If you scroll up on this page, you will see a simple checklist that details high level requirements for our DSCR loans in Oregon. If you want a more detailed quote for your specific deal, click "start" next to "apply for a DSCR loan" and our online quoting system will produce an accurate quote based on 14 questions related to your deal. Most investors are able to get a complete quote in under a minute because those 14 questions most investors will know answers to. Our most detailed DSCR Loan Requirements can be found here. Once you complete an online quote, you can proceed to your Loan File, where you can peruse the Loan Terms which will detail all the fees and proceeds of the loan in one convenient interface. Get an instant loan quote and Loan File