Rental Loans

About Rental Lending

If you want to buy rental properties that make money, check out our rental program. We handle everything from checking if you qualify, to processing your application and giving you the money. We can help you buy a new rental property, refinance the one you already have, or get cash from your property’s worth.

Apply Now

Rental Loan Details

Interest Rate:

Rates Starting at 7.25%

Credit Score (FICO):

Minimum FICO of 680

Qualifications:

Rent-ready and Leased Qualify

DSCR (Debt Service Coverage Ratio):

Minimum DSCR of 1.0

Max Loan to Value:

Up to 80% LTV

Loan Term:

30-year Fixed Rate

Loan Amount:

From $75,000-$2,000,000

Property Type:

Single Family, 2-4 Unit Multifamily, and Condo/Townhomes

Apply Now

Frequently Asked Questions

What is a Rental Loan?

This is a type of loan for people who want to buy homes and rent them out. You can buy different types of properties like single houses, small apartment buildings, townhouses, vacation homes, and condos. You can choose to pay back the loan over 30 years or choose different payment options.

What type of investment strategy can be utilized with this product?

Our rental loan program helps people save money by refinancing their high-interest loan into a lower interest rate one. This is useful after renovating the property and renting it out to tenants. It’s called the BRRRR strategy where property investors repeat this process to acquire more units with very little money invested long term. This program also works for those who just want to buy a property without renovating it. The loan is based on the DSCR ratio.

How and when would you use a Rental Loan?

If you want to invest in real estate, you need a loan. We offer a rental loan with good rates depending on whether you want to own the property for a short or long time. The loan is called a “light-doc” loan, which means that you don’t need to provide documentation to prove your income. Instead, we look at the money that you’ll make by renting out the property and use that to decide if we can give you a loan. Your rental income needs to be more than what you pay for the loan and other expenses each month, like property taxes and insurance. We usually require the rental income to be 1.0-1.2 times what you pay for the loan and expenses. If you have extra money after paying your expenses, that’s good because it means you’re making a profit.

What is the “BRRRR” strategy?

This way of investing is quite popular. It involves using a short-term loan, which is easy to get, to buy a property quickly. The condition and value of the property are checked based on how much it can be worth after some repairs are done. Often, the property can be improved to increase its value fast. The loan is usually only 65% of the value of the property, but once someone rents out the property, they can refinance the loan and borrow more money. They can use this money to pay for other expenses. This can help someone get all their money back from the loan, and even some extra money. The idea is to keep earning from renting the property and use this earnings to pay off the loan. This plan can help someone build up a lot of wealth quickly if they make good decisions.

Let’s Get Started

Get Pre-Approved Today

Get Pre-Approved Now