Rental Portfolio Loans

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

 

  • Loan

    • Minimum: $50K per property; $250K per portfolio

    • Maximum: $50MM+

    • Loan-to-Cost/AIV: Up to 80% (Purchase/R&T Refi); up to 75% (Cash-Out Refi)

    • Term: 5, 10 or 30-Years

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

    • Rate Type: Fixed or adjustable rate mortgage

    • Payment Type: Fixed Rate (5, 10, or 30-year terms); 5/6 & 5/7 ARM (10 & 30-year terms); 10/6 ARM (30-year term); IOs available upon request; restrictions apply

    • Escrow: 1st three months of PITI, interest, tax, insurance and cap-ex budget (pro-rata at closing and 1/12th ongoing)

    • Payment Frequency: Monthly

    • Pre-Payment Penalty: 5 Years (5/4/3/2/1%), 3 Years (3/2/1%); 1 Year (1%); restrictions apply

    • Yield Maintenance: In some cases; contact us for details

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

  • Property

    • Type: SFR, Condo, 2-4 Units, 5-8 Units

    • Area: Urban, Suburban

    • Use: Residential, Non-Owner Occupied Only

    • Minimum Value: $100K

    • DSCR: At least 1.20

    • Condition: C1 to C4 (as per appraisal) and rent ready

    • Mixed Use: Not eligible

    • Short Term Rentals: Not eligible

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

  • Borrower

    • Type: LLCs and corporations only

    • Experience: Ownership of at least one prior rental property required

    • Guarantor: All 20%+ owners

    • 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)

    • Liquidity Requirement: Lesser of 1) Closing Costs + 1% UPB of Mortgages on Credit Report + Nine Months of PITIA, and 2) 10% of loan balance; reserves must be seasoned for at least three months for purchase transactions

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

    • ACH for Monthly Payment: Required

  • Fees

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

    • Third Party Fees: TBD; typical costs include title, insurance, recording, appraisal, and legal.

*Service Fee: $995 for SFR; $1,295 for 2-4 Units; $3,995 for 5-8 Units

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