Investment

Investment

Investment Mortgage – Single Family Rental and Portfolio Loans

  • Self Employed? Struggling with financing for an investment property?
    • The single family rental and portfolio blanket loan programs allows fixed rates for investors with no income required.
  • The difference between the traditional conventional rental investment mortgage and these products are that no income verification is required.
  • Commercial lending:
    • Underwritten based on debt-service coverage – not personal debt-to-income ratios.
    • No limit on the number of properties that can be financed.
    • Can lend directly to an individual, LLC or corporation.

Single Family Rental Loans

Single property loans are meant for both novice and experienced investors.

  • Loan purpose is purchase and refinance, which have 30 year full amortization fixed rate terms.
  • Property types include Single Family, Condos (Non-Warrantable), Townhomes, 2-4 units.
  • The minimum property value has to be $100,000.
  • Minimum loan amount of $75,000 and maximum of $750,000.

Max Loan-to-Value

  • Purchase: allow funding up to 80% of purchase price or appraised value.
  • Refinance: allow funding up to 80% of appraised value.

Cash Flow Coverage

  • For better terms:
    • Properties $150,000 or less, the max PITIA (principal, interest, taxes, insurance, and association dues) to gross rent is 70%.
    • Properties greater than $150,000, the PITIA (principal, interest, taxes, insurance, and association dues) to gross rent 85%.
  • Also have other options up to 100%.

Refinance Seasoning

  • For better terms:
    • Greater than 90 days: 80% LTC
    • Greater than 90 days for the full appraised value
  • Have options with no seasoning requirements.

Portfolio Blanket Loan

  • Are for 7+ rent producing doors: 5 to 10 fixed rate terms.
  • Property type includes single family condos (non-warrantable), townhomes, 2-4 unit, multi unit 5-20 units for a blanket loan.
  • Minimum units of 7 rent producing doors. For example 7 single family, 4 duplexes etc..
  • Can loan to LLC for a blanket loan.
  • Max Loan-to-Value
  • Max loan-to-value of 75% for amortized loans.
  • Max loan to value of 70% for interest-only loans.

Cash Flow Requirement

  • Minimum debt service coverage ratio: 1.15x (1.20x for interest only loans)

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