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, 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.
- Purchase: allow funding up to 80% of purchase price or appraised value.
- Refinance: allow funding up to 80% of appraised value.
Cash Flow Coverage
Cash flow coverage, also known as debt-service coverage, is a factor when it comes to pricing and 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%.
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: 80% LTC
- 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 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
Properties can qualify on debt-service coverage ratios and no personal debt-to-income ratios.