Who We Lend To
Do you lend to business entities?
Do you lend to foreign nationals?
Do you lend to owner-occupiers?
Borrower and Property Requirements
What do you require from a borrower?
What are your minimum credit qualifications?
Where do you lend?
What is the minimum property value you lend on?
What physical condition must a property be in for you to finance it?
Interest Rates and Financing
How do you determine my interest rate?
How do you calculate the debt service coverage ratio or DSCR?
Do you lend based on after-repair value (ARV)?
Do you allow subordinate financing on your loans?
How do you differentiate between a rate and term refinance and a cash-out refinance?
How long does it take to fund a loan?
When do credit reports and appraisals expire?
Yes, we lend to LLCs, corporations, and limited partnerships provided ownership of the entity is not held by a trust. In addition to borrower requirements listed above, entities must provide corporate documentation. We do not lend to non-profits. We do not lend on properties held in trust. We do not lend to unregistered Series LLCs (SLLCs). All property/entity interest holders must sign a guarantee.
We do not lend to foreign nationals. However, foreign nationals may be permitted as non-primary borrower guarantors if the necessary OFAC documentation is provided.
No, we only make loans to investors purchasing or refinancing investment properties. Under no circumstances do we lend to owner-occupiers. We also do not lend on second homes or to investors if the intended use of the property or proceeds is primarily for personal, family, or household purposes.
We don’t require income verification, tax returns, or 4506 documentation. This keeps our process fast, simple, and dependable. We do require:
One form of ID for each borrower and guarantor
A title company contact
Insurance declarations page
Condo HOA contact information (if applicable)
Current lender information (for refinances)
Purchase contract and any addendums (for purchases)
We use a tri-merged credit report and either use the middle score of three scores, or the lower score of two scores. Our minimum credit score is 680. Some of our other credit requirements include:
No open foreclosure or bankruptcy
No bankruptcy in the past four years
No foreclosures, short sales or deeds in lieu within the last three years
Minimum three open and qualifying trade lines for 24 months OR minimum of two open and qualifying trade lines and a history that evidences at least three additional qualifying trade lines that were open for at least 24 months each during the last seven years
No mortgage lates in the past 12 months
For credit scores 680 and above, no more than 1 x 30 lates on non-mortgage tradelines over the past 12 months, subject to certain exclusions
For credit scores below 680, no more than 0 x 30 lates on non-mortgage tradelines over the past 12 months, subject to certain exclusions
We lend on rent-ready residential properties, up to four units, with no deferred maintenance (other than normal wear and tear), including condos and townhomes. We do not lend on manufactured homes, mobile homes, log homes, or vacant land.
For most of our loans, the minimum property value is $125k.
We only finance rent-ready properties. More specifically, the appraiser must rate the property in C4 condition or better and there cannot be any deferred maintenance visible in the appraisal photographs.
Your rate is determined by your credit score, Debt Service Coverage Ratio (DSCR) and Loan-to-Value (LTV). For credit score, we use a tri-score merged report that we pull when you apply for a loan, taking the middle of the three scores. To identify the right loan for you and receive personalized rate information, contact us or submit a deal.
DSCR is calculated by dividing the monthly rent by the monthly principal, interest, property taxes, insurance, and association dues, if any (PITIA).
Property taxes include all city, county, school, municipal, or other taxes related to the property. Insurance includes liability, casualty, rent-loss, and flood, if applicable. We require “replacement cost” casualty insurance and rent-loss insurance. Please note that your monthly insurance expense may be higher than anticipated either because of our insurance requirements or because your property appraises for a higher value than the value at the time of your previously obtained insurance.
No, our loans are structured around the rental value and “as-is” condition of the property. We lend to landlords with rent-ready properties with no deferred maintenance.
We require the property to be free of liens, including subordinate financing, when our loan closes.
Any transaction that is not a purchase transaction is a refinance transaction. If the borrower receives cash back in an amount no more than the lesser of $2,000 or 2% of the loan amount, the transaction is a rate and term refinance; otherwise, the transaction is a cash-out refinance.
We close in weeks, not months. Once your appraisal is ordered, we typically close within 21 business days. Loans are generally funded within 24 hours of closing for purchases and within 48 hours of closing for refinances.
Credit reports expire after 90 days, and appraisals expire after 120 days.