30 Year Fixed Rate – Rental Property Financing! Loan Amounts $75,000.00 – $2,000,000.00! Refinance Or Purchase!
Purchase and Refinance Program
Funding Available Nationwide, except in the following states:
Minnesota, Nevada, North Dakota, Oregon, South Dakota and Vermont.
Minimum Property Value:
$100,000.00+ depending on location of property.
Credit Score Requirement
- Minimum 680+ Credit Score Required For Underwriting Approval.
- For credit scores of 600-679 – Click Here
Borrower Qualifying Requirements
- Minimum credit score of 680+ required for funding approval.
- No foreclosures, short sales or deed in lieu in past 3 years.
- No bankruptcies in past 36 months.
- No unpaid tax liens. Any unpaid tax liens must be paid prior to or at closing.
- Documented nine (9) months reserve payments (PITIA).
- For Purchase Transactions: Proof of down-payment required for purchase transactions. No seasoning of funds to close required.
Vacation & Short Term Rentals Guidelines
- Minimum 680+ Credit Score Required For Underwriting Approval.
- Loan amounts from $200,000.00 – $2,000,000.00.
- 30 year financing available for refinance and purchase.
- Up to 75% LTV for purchase and rate/term refinance.
- Cash out refinance up to 70% LTV.
- 6 months reserve payments required.
- No Personal DTI calculations.
- Vacant properties OK for purchase and refinance.
- Can close in personal name or in name of business entity.
- For vacant properties planed to be used for Airbnb/VRBO vacation rentals we will use a short term rental income estimator to determine market rent.
Qualifying Types Of Properties
- Single Family residences, town-homes, warrantable and non-warrantable condo’s and 2-4 units. Non owner-occupied only.
Portfolio/Blanket Loans
- We can provide portfolio loans consisting of a minimum of 3+ properties.
- Refinance and purchase option available for portfolio loan
- For refinances, subject properties must be currently rented. For purchases, the subject properties can be vacant. We will use market rent as determined by the property appraisal to determine basis for rental income.
- Minimum property value for “each individual property” is $100,000.00. See paragraph 7 below for minimum property value exceptions.
- Minimum loan amount for a portfolio loan is $150,000.00.
- Appraisal requirements are exactly the same for each individual property within a portfolio as if financing one single property.
Maximum Loan To Values (LTV) – Based On Credit Score
- up to 75% of Refinance Cash Out
- up to 80% LTV Rate & Term Refinance
- up to 80% of Purchase Price or As-Is Value (whichever is less)
Interest Rates
- Borrowers credit score, final LTV and the Debt Service Coverage Ratio (DSCR Calculation) will determine the interest rate for any specific transaction
Amortization Term
- 30 Year Fixed Rate Amortized Loan with fixed rate principal and interest payment for 30 years.
Prepayment Penalty
- Prepayment penalty of 5% for the 1st year, 4% the 2nd year, 3% the 3rd year, 2% the 4th year and 1% the 5th year.
Property Requirements To Qualify for Funding Approval
- Must not be owner occupied.
- Must be less than 10 acres in size and in some cases may not exceed 2 acres.
- Must be gross living area of minimum 750 square feet.
- Warrantable and non-warrantable condos allowed.
Escrow For Taxes and Property Insurance
- Escrow of property taxes and property hazard insurance is required.
9 Months PITIA Cash Reserves Required
- Borrower must document a minimum of nine (9) months principal, interest, taxes, insurance and HOA (PITIA) cash reserves for funding approval. Cash reserve requirement applies even if borrower is receiving cash out proceeds at closing.
Days To Close
- On average we can close in approximately 30 days from the time of ordering the property appraisal.
Full Property Appraisal Required
- Full property appraisal is required on all purchase and refinance transactions. Appraisal fee varies by state. On average $475.00 – $650.00. Cost of appraisal is paid directly to 3rd party appraisal company and is due at time of full file submission.
No Verification Of Income Or Employment Required
- No verification or documentation of personal or business income is required. Personal or business income is NOT used as bases for qualifying.
Required Documentation: Must Close In Name On A Business Entity
- Copy of valid identification (all members of business entity)
- For Purchase Transactions: Copy of purchase and sales agreement (all pages, signed by all parties)
- Articles Of Organization for LLC Or Articles Of Incorporation for a Corporation
- Operating Agreement or Corporate Charter/Bylaws
- Copy of IRS Issued EIN Letter For Business Entity
- Copy of last 2 months months bank statement (all pages)
- Copy of last 2 months statements for all other assets (non real estate)
- Copy of lease agreement(s) if applicable
- Documentation of receipt of last 2 months rents for subject property
For Recently Renovated Properties: Scope Of work for completed repairs OR List of repairs completed
Note: All above terms are subject to change without prior written notice.
Note: Terms are subject to change. Final terms vary depending on the property and borrowing entity
