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.
- 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%.
- 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)