“Dominion Financial has introduced Express Rental Loans, enabling 10-day closings on DSCR-based rental financing for real estate investors across the US, streamlining the process for purchases, refinances, and portfolio expansions while prioritizing property cash flow over personal income qualifications.”
In a move poised to reshape the landscape of real estate investment financing, Dominion Financial has unveiled its Express Rental Loans program, designed specifically to accelerate the closing process on Debt Service Coverage Ratio (DSCR) rental loans. This initiative addresses a longstanding pain point for investors: the lengthy timelines associated with traditional lending, which often stretch into weeks or months and can cause missed opportunities in competitive markets.
The core innovation of Express Rental Loans lies in its commitment to closing deals in as few as 10 days, a timeframe that outperforms many conventional options and empowers borrowers to act swiftly on acquisitions or refinancings. By focusing on the property’s rental income potential rather than the borrower’s personal debt-to-income ratio, the program simplifies qualification, making it accessible to a broader range of investors, including those operating through LLCs or managing multi-unit properties.
Key Features of the Express Rental Loans Program
Express Rental Loans build on Dominion Financial’s established expertise in investor-focused products, incorporating several enhancements to facilitate speed without compromising on terms. Investors can expect:
Rapid Processing Timeline : From application to funding, the streamlined workflow minimizes bureaucratic hurdles, leveraging automated underwriting tools and dedicated teams to review documentation efficiently.
DSCR-Centric Qualification : Loans are approved based on the property’s ability to generate sufficient cash flow to cover debt obligations, typically requiring a DSCR of 1.0 or higher. This shifts the emphasis away from personal tax returns or employment history, ideal for self-employed investors or those with complex financial structures.
Flexible Loan Structures : Available as 30-year fixed-rate mortgages, these loans support both purchase and refinance scenarios. Cash-out refinances allow investors to tap into equity for further investments, while rate-and-term options help optimize existing portfolios.
Property Eligibility : The program accommodates single-family homes, townhouses, condos, and multi-family units up to 10 properties, provided they demonstrate strong rental performance. Short-term rentals, such as those listed on vacation platforms, may also qualify under certain conditions.
To illustrate the potential benefits, consider the following comparison of Express Rental Loans against traditional bank financing:
| Aspect | Express Rental Loans (Dominion Financial) | Traditional Bank DSCR Loans |
|---|---|---|
| Closing Time | As little as 10 days | 30-60 days or more |
| Qualification Basis | Property cash flow (DSCR ≥ 1.0) | Personal income + DSCR |
| Documentation Required | Minimal; no personal tax returns needed | Extensive personal financials |
| Maximum LTV | Up to 80% | Typically 75-80% |
| Loan Term | 30-year fixed | Variable; often shorter |
| Eligible Entities | Individuals, LLCs, corporations | Often limited to individuals |
This table highlights how the program not only accelerates closings but also reduces the administrative burden, allowing investors to focus on deal-sourcing rather than paperwork.
How the 10-Day Closing Process Works
The expedited closing is achieved through a meticulously optimized process that begins with an initial quote request, often fulfilled within 24 hours. Investors submit basic property details, including address, estimated value, and projected rental income, via an online portal. Upon preliminary approval, a dedicated loan officer coordinates appraisals, title searches, and any necessary verifications in parallel, rather than sequentially, to shave days off the timeline.
For refinances, features like appraisal transfers play a crucial role. If an investor has an existing appraisal from another lender, it can be seamlessly transferred, avoiding redundant costs and delays. This is particularly advantageous in rising markets where property values fluctuate rapidly, ensuring borrowers don’t lose out on favorable terms.
In practice, the 10-day close is realistic for straightforward deals with clean titles and readily available documentation. More complex scenarios, such as those involving multiple properties or unique structures, may extend slightly but still aim to outperform industry averages. Investors are encouraged to prepare key documents in advance, such as lease agreements or market rent analyses, to maximize efficiency.
Benefits for Real Estate Investors
The launch of Express Rental Loans arrives at a pivotal moment for the US real estate market, where inventory remains tight and competition for income-producing properties is fierce. By enabling faster closings, investors can secure deals before competitors, especially in hot markets like those in the Southeast or Midwest, where rental demand continues to outpace supply.
Portfolio scalability is another major advantage. With options for cross-collateralization, investors can bundle multiple properties under a single loan, simplifying management and potentially unlocking better rates. This is especially beneficial for those building long-term rental empires, as it allows reinvestment of capital into additional acquisitions without the drag of prolonged funding waits.
Moreover, the program’s emphasis on cash flow aligns with current economic realities. Amid fluctuating interest rates and rising operational costs, properties with strong DSCR metrics provide a buffer against market volatility. Investors can leverage this to refinance existing holdings at competitive rates, reducing monthly payments and improving overall returns.
Market Implications and Competitive Edge
Dominion Financial’s entry into ultra-fast DSCR lending underscores a broader trend in private lending toward efficiency and investor empowerment. As traditional banks grapple with regulatory constraints and slower processes, private lenders like Dominion are filling the gap, offering terms that rival or surpass those of larger institutions.
This program also includes perks such as a price-beat guarantee, where Dominion commits to matching or bettering competing offers on comparable DSCR loans. Combined with no prepayment penalties on many structures, it provides flexibility for investors who may want to refinance again in response to rate changes.
For brokers and third-party originators, the initiative opens new avenues through expanded wholesale programs, allowing them to offer these accelerated products to clients and earn competitive commissions. This could democratize access to fast financing, extending beyond seasoned investors to newcomers looking to enter the rental market.
Potential Use Cases
Express Rental Loans cater to diverse investor strategies. For fix-and-hold enthusiasts, the quick close facilitates transitioning from bridge loans to long-term financing post-rehab. Seasoned portfolio managers can use it for bulk refinances, consolidating debts across properties to free up liquidity.
In scenarios involving time-sensitive opportunities, such as off-market deals or auctions, the 10-day timeline proves invaluable. Imagine an investor spotting a distressed multi-unit building in a growing urban area—the ability to close rapidly could mean the difference between securing the asset and watching it go to a cash buyer.
Even for short-term rental operators, the program’s adaptability shines. By using projected income from platforms like Airbnb, investors can qualify properties that might not fit traditional molds, capitalizing on the booming vacation rental sector.
Overall, this launch positions Dominion Financial as a frontrunner in innovative lending, tailored to the dynamic needs of today’s real estate investors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendations, or endorsements. Readers should conduct their own research and consult with qualified professionals before making any decisions. The information presented is based on publicly available data and may not reflect all risks or suitability for individual circumstances.
