Loans for real estate investors to purchase or refinance rental properties.
- Qualify using future rental income
- Personal income is not considered
- Simple process
Loan Terms
| Loan to value | Up to 80% LTV |
| Loan amount | Minimum $75,000 |
| Interest rate | Start at 7.50% |
| Credit score | Minimum 680 |
| Loan types | Fixed rates, interest only, 5/1 + 7/1 ARM’s |
Our Advantages
- Fast closings
- Direct relationships with 8 private funds
- Competitive interest rates
- Minimal paperwork
- No tax returns needed
- No experience required
Approval based on property generating enough current or future rental income to cover monthly debt payments.
Rental Loan Process
- Find out how much you can borrow and what your interest rate will be.
- Complete loan application.
- Underwriter runs your credit.
- Sign term sheet to move forward.
- If approved, an appraisal is ordered.
- Underwriter reviews comparables and calculates potential rental income that the property can generate.
- Underwriters check if rental income will cover monthly loan payments, property taxes and insurance.
- Underwriter calculates your debt service coverage ratio (DSCR). Higher DSCR ensures loan repayment.
- Loan is approved if the minimum loan requirements are met.
- Title agency and funding department work together to close the loan.
Tips for Best Loan Terms
- Close before the end of the month to pay less prorated interest at closing.
- Higher credit scores get lower interest rates, so refinance your personal debts.
- Credit score less than 680? Get a short term bridge loan to buy the rental property and delay long term financing.
- Have a business partner? Apply with whoever has the best credit score.
- Prepare estimated rental income, property taxes and insurance costs.
- Avoid seller concessions. Most lenders will deny a loan when a seller pays more than 3% towards closing costs.
- Do not apply to multiple lenders. Every hard pull will lower your credit score.
- Interest only rental loans to decrease monthly costs and increase cash flow.
Explore Your Loan Options
Give us a call to learn more about rental property loans. We’re happy to help.
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