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DSCR Loans in North Carolina

Investment property loans that qualify on rent.

A DSCR loan in North Carolina is an investment property mortgage that qualifies on the rent the property earns, not your personal income. HUD puts the 2 bedroom Fair Market Rent for the Charlotte metro at $1,785 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in North Carolina up to $5 million.

Run my North Carolina dealCheck your DSCR

Facts checked November 1, 2026. Not a commitment to lend.

Facts checked November 1, 2026

North Carolina at a glance for DSCR investors

Pulled from state statutes, state agencies, the Census Bureau and FRED. Each row links to its source.

North Carolina factValueSource
Security instrumentDeed of trustncleg.gov
ForeclosurePower of sale foreclosure that requires a hearing before the clerk of superior court, whose findings are a judicial act appealable within 10 days (hybrid, not purely nonjudicial)N.C.G.S. § 45-21.16
Transfer and recording taxesExcise tax on conveyances of $1 per $500 of consideration (half to the county, half to the state)N.C.G.S. § 105-228.30
Security depositCapN.C.G.S. §§ 42-51, 42-52
Notice for unpaid rent10 days after demand for past due rentN.C.G.S. § 42-3
Rent controlCounties and cities may not enact, maintain or enforce rent control on private residential or commercial property (limited exceptions for publicly owned or subsidized units)N.C.G.S. § 42-14.1
LLC formation fee$125sosnc.gov
Median listing price$400,000 in September 2026 ($419,450 in September 2025)Realtor.com via FRED
HUD 2 bedroom Fair Market Rent$1,785, The Charlotte metroHUD User
The definition

How a DSCR loan works in North Carolina

The ratio is rent over the full payment, PITIA. At the HUD 2 bedroom Fair Market Rent for the Charlotte metro of $1,785, a 1.00 ratio supports PITIA up to $1,785 and a 0.50 ratio up to $3,570.

Full walk through: how DSCR is calculated.

Where PMG is different

Why North Carolina investors use PMG

What PMG can place for a North Carolina rental, in short.

  • First time buyers: allowed, no VOR
  • Cash out: no seasoning
  • Reserves: none under $1M, 75% LTV
  • Assets: no sourcing
  • Gift funds: 100%
  • ADUs: multiple
  • Foreign nationals: 70% / 60% LTV
  • DSCR: from 0.50
  • Interest only: 70% / 65% LTV

Loan amount

Up to $5M

Credit

660 and up

Down

20 to 25%

Vesting

LLC ok

Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.

North Carolina rental market

North Carolina rental market snapshot

Rent is the number that qualifies a DSCR loan, so start with what North Carolina rentals actually command.

HUD Fair Market Rent, 2 bedroom

$1,785

The Charlotte metro (FY2027)

HUD User

HUD Fair Market Rent, 2 bedroom

$1,689

The Raleigh metro (FY2027)

HUD User

Median listing price

$400,000

September 2026, down 4.6% from $419,450 in September 2025

Realtor.com via FRED

Quick math (computed from the figures above): On a North Carolina home at the North Carolina median of $400,000, 25% down comes to $100,000, leaving a $300,000 loan. A year of rent at the Fair Market Rent for the Charlotte metro ($1,785) is $21,420, or 5.4% of that price. A year of rent at the Fair Market Rent for the Raleigh metro ($1,689) is $20,268, or 5.1% of that price.

Fair Market Rent is a HUD benchmark, not an appraisal.

Calculator

Check your North Carolina DSCR in seconds

The rent field starts at the HUD 2 bedroom Fair Market Rent for the Charlotte metro. HUD also lists the Charlotte metro at $1,785 and the Raleigh metro at $1,689. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median North Carolina listing was $400,000 in September 2026.

North Carolina DSCR Calculator

See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.

Income
Example: HUD 2 bedroom Fair Market Rent for the Charlotte metro. Replace it with your rent.
Loan
Expenses
Leave blank if there is no HOA.

Your DSCR results

Enter rent, price and your quoted rate to see your DSCR.

Formula used

Loan amount (L) = Price × (100 minus Down %) ÷ 100

P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12

P&I (40 year interest only) = L × r

PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA

DSCR = Monthly rent ÷ PITIA

Rent needed for a target DSCR = Target × PITIA

Talk through your numbers with us

Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.

The math

DSCR worked examples for North Carolina

Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real North Carolina rents. Not a quote or a rate.

The Charlotte metro

HUD FY2027 2 bedroom Fair Market Rent (source)
$1,785
Hypothetical PITIA
$1,775

1.01DSCR

$1,785 / $1,775 = 1.01: covers the full payment.

The Raleigh metro

HUD FY2027 2 bedroom Fair Market Rent (source)
$1,689
Hypothetical PITIA
$1,775

0.95DSCR

$1,689 / $1,775 = 0.95: fits programs down to 0.50.

Talk to us

Have a North Carolina rental in mind? Run it with us.

Share the deal and we will run the ratio, compare lenders and lay out your options in plain numbers.

Investors from any state can buy in North Carolina.

See If My North Carolina Deal Qualifies

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Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

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Top markets

Where North Carolina investors are buying

Most North Carolina DSCR deals land in these markets. Check the city rules before you buy.

Charlotte

$1,785

HUD 2 bedroom Fair Market Rent, the Charlotte metro (HUD)

Raleigh

$1,689

HUD 2 bedroom Fair Market Rent, the Raleigh metro (HUD)

Short term rental rules in Raleigh

  • Raleigh: Zoning permit required before operating. Permit number must appear on every listing and be posted on site. Whole home or partial rentals allowed as a limited use in listed residential and mixed use districts. In multi unit buildings no more than 25 percent of units or two units, whichever is greater. No events in residential districts. Operators keep a lodger list for 3 years and pay occupancy taxes. No primary residence rule stated. (raleighnc.gov)

City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.

Landlord and tenant law

North Carolina landlord and tenant rules that affect your DSCR

Know the North Carolina landlord rules before you close. They shape your lease, your deposit and how fast you can act on unpaid rent.

TopicThe ruleCitation
Security depositCap: 2 weeks' rent for week to week, 1.5 months' rent for month to month, 2 months' rent for terms longer than month to month. Itemized accounting and balance due within 30 days after termination and delivery of possession.N.C.G.S. §§ 42-51, 42-52
Pay or quit10 days after demand for past due rentN.C.G.S. § 42-3
Month to month notice7 days notice to quit (2 days week to week, 1 month year to year)N.C.G.S. § 42-14
Rent controlCounties and cities may not enact, maintain or enforce rent control on private residential or commercial property (limited exceptions for publicly owned or subsidized units).N.C.G.S. § 42-14.1

Not legal advice.

Property taxes

North Carolina property taxes on a rental

Taxes go straight into PITIA, so they move your ratio. Budget for the investor rate, since rentals usually do not get homestead treatment.

  • Assessment: Property is appraised at true value in money (market value). Counties must reappraise at least every eight years and may adopt a shorter cycle by resolution, so tax bills can jump in a reappraisal year. N.C.G.S. §§ 105-283, 105-286 (ncleg.gov)
Closing and foreclosure

How North Carolina closings work

Who closes your loan, which security instrument you sign and what the state charges to record it.

  • Security instrument: Deed of trust (ncleg.gov)
  • Foreclosure: Power of sale foreclosure that requires a hearing before the clerk of superior court, whose findings are a judicial act appealable within 10 days (hybrid, not purely nonjudicial). N.C.G.S. § 45-21.16 (ncleg.gov)
  • Attorney required: Yes in practice: the NC State Bar treats title opinions, drafting deeds and deeds of trust, and deciding whether funds can be disbursed as the practice of law that a licensed NC lawyer must perform or supervise. Nonlawyers may only handle administrative closing tasks. NC State Bar Authorized Practice Advisory Opinion 2002-1 (ncbar.gov)
  • Transfer taxes: Excise tax on conveyances of $1 per $500 of consideration (half to the county, half to the state). No separate state mortgage tax found in research. N.C.G.S. § 105-228.30 (ncleg.gov)
LLC and vesting

Closing in an LLC in North Carolina

What it costs to form and keep an LLC in good standing with the North Carolina Secretary of State.

Local angle

What makes North Carolina different for rental investors

  • North Carolina pairs two large job centers, Charlotte's banking and finance base and the Research Triangle around Raleigh, Durham and Chapel Hill with its universities. Major military installations such as Fort Bragg near Fayetteville and Camp Lejeune near Jacksonville add steady rental demand. Landlords should note the short 10 day rent demand period and the 7 day month to month notice, both among the shorter timelines in the region. (ncleg.gov)
Before you offer

North Carolina investor checklist

The North Carolina rules that touch your lease, your closing and your entity.

  • Security deposit: Cap: 2 weeks' rent for week to week, 1.5 months' rent for month to month, 2 months' rent for terms longer than month to month (N.C.G.S. §§ 42-51, 42-52)
  • Unpaid rent notice: 10 days after demand for past due rent (N.C.G.S. § 42-3)
  • Ending a month to month lease: Cap: 2 weeks' rent for week to week, 1.5 months' rent for month to month, 2 months' rent for terms longer than month to month (N.C.G.S. §§ 42-51, 42-52)
  • Rent control: Counties and cities may not enact, maintain or enforce rent control on private residential or commercial property (limited exceptions for publicly owned or subsidized units) (N.C.G.S. § 42-14.1)
  • Tax basis: Property is appraised at true value in money (market value) (N.C.G.S. §§ 105-283, 105-286)
  • Security instrument: Deed of trust (ncleg.gov)
  • Foreclosure: Power of sale foreclosure that requires a hearing before the clerk of superior court, whose findings are a judicial act appealable within 10 days (hybrid, not purely nonjudicial) (N.C.G.S. § 45-21.16)
  • Transfer and recording taxes: Excise tax on conveyances of $1 per $500 of consideration (half to the county, half to the state) (N.C.G.S. § 105-228.30)
  • Closing attorney: Yes in practice: the NC State Bar treats title opinions, drafting deeds and deeds of trust, and deciding whether funds can be disbursed as the practice of law that a licensed NC lawyer must perform or supervise (NC State Bar Authorized Practice Advisory Opinion 2002-1)
  • LLC formation: $125 (sosnc.gov)
  • LLC upkeep: $200 (sosnc.gov)
  • Short term rental, Raleigh: Zoning permit required before operating (raleighnc.gov)
Step by step

From offer to closing in North Carolina

  1. Send the North Carolina deal
  2. We run the DSCR
  3. We shop lenders
  4. Appraisal confirms rent
  5. Close in your name or LLC

Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.

35 states and counting

DSCR loans across the country

North Carolina is highlighted. We also lend DSCR in South Carolina, Georgia and Tennessee next door, and in 30 more states. Tap a gold state to open its guide.

DSCR loans in AlabamaDSCR loans in AlaskaDSCR loans in ArizonaDSCR loans in ArkansasDSCR loans in ColoradoDSCR loans in ConnecticutDSCR loans in DelawareDSCR loans in GeorgiaDSCR loans in HawaiiDSCR loans in IndianaDSCR loans in IowaDSCR loans in KansasDSCR loans in KentuckyDSCR loans in LouisianaDSCR loans in MaineDSCR loans in MarylandDSCR loans in MassachusettsDSCR loans in MichiganDSCR loans in MississippiDSCR loans in MissouriDSCR loans in MontanaDSCR loans in New HampshireDSCR loans in New MexicoDSCR loans in North Carolina (this page)DSCR loans in OhioDSCR loans in OklahomaDSCR loans in PennsylvaniaDSCR loans in Rhode IslandDSCR loans in South CarolinaDSCR loans in TennesseeDSCR loans in TexasDSCR loans in WashingtonDSCR loans in West VirginiaDSCR loans in WisconsinDSCR loans in Wyoming
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Map geometry: US Census Bureau cartographic boundary files.

FAQ

North Carolina DSCR loan questions

Straight answers for investors buying or refinancing rentals in North Carolina.

PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.

Book a free call

Does Pillar Mortgage Group offer DSCR loans in North Carolina?

Yes. Purchases, rate and term and cash out refinances on North Carolina rentals, up to $5 million, in your name or an LLC. That includes Charlotte, Raleigh, Durham and Greensboro.

Which rent counts on a North Carolina DSCR loan?

The lease or the appraiser's market rent. As a benchmark, HUD puts the 2 bedroom Fair Market Rent for the Charlotte metro at $1,785 a month.

How much security deposit can a North Carolina landlord take?

Cap: 2 weeks' rent for week to week, 1.5 months' rent for month to month, 2 months' rent for terms longer than month to month. Itemized accounting and balance due within 30 days after termination and delivery of possession. (N.C.G.S. §§ 42-51, 42-52)

What notice is required for unpaid rent in North Carolina?

10 days after demand for past due rent. (N.C.G.S. § 42-3)

How much notice ends a month to month lease in North Carolina?

Cap: 2 weeks' rent for week to week, 1.5 months' rent for month to month, 2 months' rent for terms longer than month to month. Itemized accounting and balance due within 30 days after termination and delivery of possession. (N.C.G.S. §§ 42-51, 42-52)

How does North Carolina assess property tax on a rental?

Property is appraised at true value in money (market value). Counties must reappraise at least every eight years and may adopt a shorter cycle by resolution, so tax bills can jump in a reappraisal year. (N.C.G.S. §§ 105-283, 105-286)

Is an attorney required at a North Carolina closing?

Yes in practice: the NC State Bar treats title opinions, drafting deeds and deeds of trust, and deciding whether funds can be disbursed as the practice of law that a licensed NC lawyer must perform or supervise. Nonlawyers may only handle administrative closing tasks. (NC State Bar Authorized Practice Advisory Opinion 2002-1)

Does North Carolina have rent control?

Counties and cities may not enact, maintain or enforce rent control on private residential or commercial property (limited exceptions for publicly owned or subsidized units). (N.C.G.S. § 42-14.1)

What security instrument does North Carolina use?

North Carolina closes on a deed of trust. Foreclosure: Power of sale foreclosure that requires a hearing before the clerk of superior court, whose findings are a judicial act appealable within 10 days (hybrid, not purely nonjudicial). (N.C.G.S. § 45-21.16)

Does North Carolina charge a transfer tax when I buy a rental?

Excise tax on conveyances of $1 per $500 of consideration (half to the county, half to the state). No separate state mortgage tax found in research. (N.C.G.S. § 105-228.30)
Nearby states

DSCR loans in nearby states

Investing across state lines? We lend DSCR in these neighbors of North Carolina too.

Sources and review dates

Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.

  1. HUD FY2027 FMR Charlotte (area wide): https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=3711999999&reporttype=county&states=37&year=2027&sa_override=1 (checked 2026-11-01)
  2. NCGS 45-21.16: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_45/GS_45-21.16.html (checked 2026-11-01)
  3. NCGS 105-228.30: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-228.30.html (checked 2026-11-01)
  4. NCGS Ch 42 Art 6: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_42/Article_6.html (checked 2026-11-01)
  5. NCGS 42-3: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_42/GS_42-3.html (checked 2026-11-01)
  6. NCGS 42-14.1: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_42/GS_42-14.1.html (checked 2026-11-01)
  7. NC SOS LLC fees: https://www.sosnc.gov/fees/by_title/_Business_Registration_limited_liability_companies (checked 2026-11-01)
  8. FRED MEDLISPRINC: https://fred.stlouisfed.org/series/MEDLISPRINC (checked 2026-11-01)
  9. HUD FY2027 FMR Raleigh (area wide): https://www.huduser.gov/datasets/fmr/fmr2027/summary?counties=3718399999&reporttype=county&states=37&year=2027&sa_override=1 (checked 2026-11-01)
  10. Raleigh STR: https://raleighnc.gov/permits/services/short-term-rentals (checked 2026-11-01)
  11. NCGS 42-14: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_42/GS_42-14.html (checked 2026-11-01)
  12. NCGS 105-286: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-286.html (checked 2026-11-01)
  13. NC State Bar APAO 2002-1: https://www.ncbar.gov/for-lawyers/ethics-and-governing-rules/ethics-opinions/opinions/authorized-practice-advisory-opinion-2002-1/ (checked 2026-11-01)
North Carolina investors

Let the rent do the qualifying.

Send the North Carolina property and rent. We run the ratio and lay out terms before you offer.

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Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076  |  Arizona License MB-2009671  |  View NMLS Consumer Access