Rental Properties
Permanent financing of rental properties with long-term tenants. These loans use the rental cash flow and stabilized property value to determine the loan amount.
- Finance up to 80% loan to value; 75% for cash-out
- Single-family & multifamily properties
- Low or No Prepayment Penalty options
- Minimum DSCR 0.75
Lending Criteria
| LOAN AMOUNT | $75,000 to $1.5 million. Loan amounts outside of this range considered. |
| LOAN TERM | 30-year term; fully amortizing entire term, or I/O for 10 years with rate fixed for 5 years then adjustable every 6 months |
| LOAN TO VALUE | Up to 80%; 75% for cash-out refinances with low seasoning |
| DEBT COVERAGE | Minimum 1.00 DSCR |
| PREPAYMENT PENALTY | Multiple PPP options available, including No PPP (depending on the state) |
| CLOSING TIMELINE | 2-3 weeks |
Guidelines
| FICO | 660 min hard credit assessment |
| REVENUE VERIFICATION | Long-term rental revenue is verified through a lease agreement |
| PROPERTY VALUATION | Appraisal with market rents |
| ELIGIBLE PROPERTIES | Single-family, townhomes, warrantable condos, 2-4 units and 5-10 units |
| ELIGIBLE STATES | Nationwide except ND, NV, SD, VT, and WV |
| BORROWER | Entities only. A personal guarantee is required. Non-recourse is not allowed. |
| MORTGAGE PAYMENTS | Taxes and insurance are escrowed. Mortgage payments are collected by ACH. |