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.
The debt-service coverage loans are:
- 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, limited liability company 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 fully amortization fixed or adjustable rates.
Property types include:
- Single family residence.
- Condos (warrantable, non-warrantable and condotels).
- 2-4 units and mixed-use up to 8 units.
- Purchase: allow funding up to 85% of purchase price or appraised value.
- Refinance: rate and term and cash out loan-to-value depend on cash flow of the property.
Cash Flow Coverage
Cash flow coverage, also known as debt-service coverage, is a factor when it comes to pricing and terms. The rate and terms depend on the cash flow of the property, but there are no ratio options available too.
Debt-service coverage is a calculation of the properties cash flow as a ratio – it is calculated by dividing the net operating income by the mortgage payment (principal, interest, tax, insurance, and association dues).
There are options when it comes to pricing and term when seasoning is a factor. Pricing and terms can depend on the following seasoning requirements:
- Greater than 90 days for the full appraised value.
- Have options with no seasoning requirements and allow delayed financing.
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 limited liability company and corporation for a blanket loan.
Cash Flow Requirement
Properties can qualify on debt-service coverage ratios and no personal debt-to-income ratios.