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, and 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 75% of appraised value.

Cash Flow Coverage

  • For properties $150,000 or less, the max PITIA (Principal, interest, taxes, insurance, and association dues) to gross rent is 70%.
  • For properties greater than $150,000, the PITIA (Principal, interest, taxes, insurance, and association dues) to gross rent 85%. 
  • Also have other options.

Refinance Seasoning

  • Greater than 90 days: 80% LTC
  • Greater than 90 days for the full appraised value

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)

P&I Mortgage Calculator

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