2024 · North Carolina

How investors finance real estate in North Carolina

In 2024, 18,316 investment-property loans worth $5.0B were originated on single-family 1-4 unit homes in North Carolina. Here's how those terms compared to the rest of the country.

Investor rate premium

85 bps

U.S. median: 88 bps

Denial rate

15.9%

U.S. median: 17.2%

DSCR / business-purpose

68%

U.S. median: 69%

Median LTV

75%

U.S. median: 75%

What the numbers say

Investors in North Carolina borrowed at a median rate of 7.375%, versus 6.525% for owner-occupants — a 85 bps premium that ranks 40th of 51 states.

Their applications were denied 15.9% of the time. The leading reasons for denial were debt-to-income ratio, collateral, credit history.

68% of investor loans were business- or commercial-purpose — the category that includes DSCR and LLC-held loans — and 14% were cash-out refinances. The typical loan-to-value was 75%, implying about 25% down.

ProInvestorHubInvestor rate premium: North Carolina vs the nationExtra basis points investors pay over owner-occupantsNorth Carolina85 bpsU.S. median88 bpsHighest (Mississippi)163 bpsSource: CFPB HMDA 2024 · proinvestorhub.comProInvestorHub

Frequently asked questions

How much more do investors pay for a mortgage in North Carolina?

In 2024, the median investment-property loan in North Carolina carried a rate of 7.375% versus 6.525% for an owner-occupant — a premium of 85 bps. That ranks 40th of 51 states (1 = highest premium).

What share of investor loan applications are denied in North Carolina?

15.9% of investment-property applications were denied in North Carolina in 2024, the 32nd-highest denial rate among the 51 states. The most common denial reasons were debt-to-income ratio, collateral, credit history.

How common are DSCR and business-purpose investor loans in North Carolina?

68% of investor loans in North Carolina were flagged as primarily business or commercial purpose — the bucket that includes DSCR and LLC-held loans (27th of 51). The median loan-to-value was 75%.

Source: CFPB / FFIEC HMDA Data Browser (loan-level public dataset), 2024. Single-family 1-4 unit, site-built loans; financed purchases only.