Portfolio Rental Loan

For purchase or refinance a portfolio of properties or refinance and acquire properties under the same transaction

Portfolio Rental Loan

Loan Parameters:

Standard:

  • Purpose:
    • Purchase or refinance a portfolio of properties.
    • Refinance and acquire properties under the same transaction
  • Individual Loan Size
    • $500K – $10MM
  • Property or Unit Min/Max
    • 5+ properties/units
  • Term & Amortization
    • 5-, 7-, or 10-year with balloon due at end of term
  • Max Loan-to-Value (LTV)
    • Up to 75% on purchase, limited cash-out refi, and cash-out refi
  • Debt Service Coverage Ratio Minimum (DSCR)
    • 15x (75% of gross rent for DSCR)
  • Borrower Type
    • Entity (Special Purpose Entity) Must be a Newly Formed LLC only
  • Non-Owner Occupied Property
    • Single Family Residence, 2-4 units, Condos, Townhomes, PUD, Multi-family (5-20 units)
  • Seasoning Requirement (to use Value vs. Cost Basis)
    • 180 days
  • Pre-Pay Penalty
    • Yield Maintenance OR Declining Points, stepping down per year as follows:
    • 5yr loans: 5%, 4%, 3%, 2%, 1%
    • 7yr loans: 5%, 4%, 3%, 2%, 1%, 1%, 1%
    • 10yr loans: 5%, 4%, 3%, 2%, 1%, 1%, 1%, 1%, 1%, 1%
  • Minimum Credit Score Requirement
    • 660 FICO (all Guarantors)

Loan Parameters:

Express:

  • Purpose:
    • Purchase or refinance a portfolio of properties.
    • Refinance and acquire properties under the same transaction
  • Individual Loan Size
    • $200K – $5MM
  • Property or Unit Min/Max
    • 2 to 20 properties/units
  • Term & Amortization
    • 30-year fixed
  • Max Loan-to-Value (LTV)
    • Up to 80% on purchase / limited cash-out refi, and 75% on cash-out refi
  • Debt Service Coverage Ratio Minimum (DSCR)
    • No DSCR floor < 1.00x Property LTV max of 65%
  • Borrower Type
    • Entity (Single Purpose Entity, existing or newly formed)
  • Non-Owner Occupied Property
    • SFR, 2-4 units2, Condos, Townhomes, PUD, Multi-family (5-8 units)
  • Seasoning Requirement (to use Value vs. Cost Basis)
    • 180 days
  • Pre-Pay Penalty
    • Declining Points, stepping down per year as follows:
    • 3%, 2%, 1%
    • OR
    • 5%, 4%, 3%, 2%, 1%
  • Minimum Credit Score Requirement
    • 660 FICO (all Guarantors)