Rental Loans

Below are some of the key components of our 1-4 unit long term rental loan program.

See ineligibility criteria here.

 

  • Loan

    • Minimum: $50K

    • Maximum: $2MM

    • Loan-to-Cost/AIV: Up to 80%

    • Term: 360 months

    • Type: Purchase or Refinance (including cash-outs)

    • Rate Type: Fixed or adjustable rate mortgage

    • Rate Lock: Locked for 21 days after receiving a full file, including the appraisal, title and borrower docs

    • Payment Type: Typically 30-year fixed; ARMs available upon request (restrictions apply)

    • Escrow: Tax and insurance

    • Payment Frequency: Monthly

    • Pre-Payment Penalty: 5 Years (5/4/3/2/1%)

    • Closing Time: Within 10-15 business days from full file receipt

    • Portfolio Loans: See summary here

  • Property

    • Type: SFR, Condo, 2-4 Units

    • Area: Urban, Suburban

    • Use: Residential, Non-Owner Occupied Only

    • Minimum Value: $75K

    • DSCR: At least 1.20

    • Condition: C1 to C4 and rent ready with no renovation/repairs required (as per appraisal)

    • Market: If declining, then -5% of eligible maximum LTV

    • Vacancy (Purchase): Permitted for all property types.

    • Vacancy (Refinances): SFR - Not allowed; 2-4 Units - No more than one vacancy allowed; partially vacant properties are subject to a 5% LTV reduction; vacancies more than 2 months not allowed.

    • Mixed Use: Ineligible

    • Short Term Rentals: Ineligible

    • 5+ Units: Case by case. Contact us for more information.

    • Eligible States: AL, AR, CO, CT, DE, FL, GA, HI, IA, IL, IN, KS, KY, LA, MA, MD, ME, MO, MS, MT, NH, NM, OH, OK, SC, TX, WA, WI, WV, WY

  • Borrower

    • Type: Typically LLC or corporation; individual borrowers: case by case

    • Guarantor: At least one eligible 20%+ owner

    • Minimum Guarantor Credit Score: At least 660

    • Representative Guarantor Credit Score: Lowest median score

    • Guarantor Background: No derogatory credit events (e.g. bankruptcy, foreclosure, short-sale, deed-in-lieu, etc.) within the past 36 months; no felony convictions, misdemeanor convictions involving fraud, embezzlement or other similar crimes; no late mortgage payment on credit report within the past 24 months; no indications of late payments on payoff statements (for refinances)

    • Experience: At least one guarantor has previously owned real estate.

    • Liquidity Requirement: Closing Costs + 1% UPB of Mortgages on Credit Report + Nine Months of PITIA

    • Foreign Nationals: Case by case. Contact us for more information.

    • ACH for Monthly Payment: Required

  • Fees

    • Lender Fees: 2% Origination Fee + Service Fee* (both collected at closing)

    • Third Party Fees: TBD; typical costs include title, insurance, recording, appraisal, and legal. Assume $600-800 for an appraisal before closing and $1,360 for legal doc prep at closing. Wholesaler fees are capped at 20%, if applicable.

*Service Fee: $995 for SFR; $1,295 for 2-4 Units

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