Single Rental Loan

Loan Parameters:

Purpose:

Purchase, limited cash-out, or cash-out1 of a single rental property

Business Purpose Loan:

Non-owner occupied only. No income or employment verification, no W-2’s, paystubs or tax returns required. No limit on number or units financed, max exposure of up to $10MM possible.

Individual Loan Size:

$75K – $2MM

Experience:

First time investors allowed, but no first-time homebuyers/owners

Term & Amortization:

30-year fixed, full amortization

Debt Service Coverage Ratio Minimum (DSCR)

No DSCR floor. < 1.00x Property LTV max of 65% ( If propose rental income cannot cover 100% of the new mortgage payment, 35% down payment is required)

Borrower Type

Individuals and Entities (Single Purpose)

Non-Owner Occupied Property

SFR, 2-4 units, Condos, Non-warrantable condos with reduced leverage, Townhomes, PUD

Seasoning Requirement (to use Value vs. Cost Basis)

< 180 days: Use lesser of acquisition or value (cash-out limited to 65% LTV) (Seasoning = How long on title)

Pre-Pay Penalty

5% of unpaid principal balance in yr 1; 4% in yr 2; 3% in yr 3; 2% in yr 4; 1% in yr 5; OR 3% of unpaid principal balance in yr 1; 2% in yr 2; 1% in yr 3 

Valuation/Rent Requirements

No-fee alternative valuation and rent schedule option for eligible properties3; otherwise full appraisal required. No rural properties.

 Short Term Rentals

Short-term or vacation rentals not eligible

Leasing

Leased or vacant at close (must be leased within 180 days after closing)

Reserves

6 months if tenant-occupied, 9 months if vacant

Credit Scores and LTV:

Min Credit Score: 640 FICO
Max Loan-to-Value (ARV LTV)

• Purchase / Limited Cash-Out Refi: 80%.
• Cash-Out Refi: 75%
• Vacant Property Refi: 65%.