We only do hard pulls for rental loans AFTER you’ve accepted an offer and once the loan is in underwriting. We utilize soft pulls for short-term mortgages.
Checking, savings, and money market accounts. We can also consider retirement accounts, stocks, and HELOCs at 50% of the balance.
Yes, at higher rates and lower LTV. We will underwrite the operating history instead of a lease. If you are looking to refinance your STR, we will want to see 6 months of operating history.
Lower rates and lower fixed costs (loan fees and third party closing costs). A portfolio loan requires at least two properties.
We do not. We’ll lend up to 90% Loan to Cost depending on experience.
Yes, this person must be on title within the entity.
If property is owned less than 3 months, the loan cannot exceed 80% of investment cost (purchase + rehab).
If the property is owned for 3-6 months, the loan cannot exceed 100% of investment cost (purchase + rehab).
After 6 months, there is no restriction on investment costs
We require title insurance on our loans, which a lot of local auction properties will not have. Some online auctions go through a closing agent that provides title insurance, but the borrower should check with the seller/platform.
If any of these options will cause a lien to be filed on the property we will not be able to lend. We need to be in the first position and can’t have any 2nd liens behind our loans.
This will depend on the type of loan product. Note that the following timelines start when the file is ready for underwriting (all info and documents uploaded), not necessarily when the loan is submitted or under contract.
Rehab/Bridge loans – 10 business days for a new client, 5-7 business days for repeat clients
Rental loans – 4 weeks for single properties, 5-8 weeks for most portfolios
Construction – 3+ weeks, depending on complexity
5+ Unit Multifamily – 4-6 weeks, depending on complexity and appraisal timelines
Why we care about whether or not a property is rural relates to both how we source capital for loans and assess the risk of a mortgage default. This is one of the most ambiguous aspects of underwriting a mortgage, and how we evaluate property location depends on whether we are providing short-term mortgage debt or long-term rental financing (e.g., a 30-year mortgage):
● Short-term mortgage: We rely on geographic characteristics to determine if a property is rural. Those characteristics are location in a metropolitan statistical area (“MSA”) with less than 75,000 people, in a city or town with less than 7,500 people, more than 30 miles from a commercial hub or airport, and in a local area that does not show gridwork from a satellite view from Google Maps. If a property valuation reports a property is rural, that is a consideration in deciding.
● Long-term mortgage: We rely on the appraisal to determine if a property is rural. We use the above geographic characteristics and USDA designation to determine if the appraisal designation of rural status is reasonable. If we believe it is not reasonable, we may dispute the designation with the appraiser. Ultimately, we do rely on the appraisal because of how we fund long-term rental loans through institutional capital partnerships and securitizations.
Property is not in a state that we finance or in a location that an appraiser would consider rural
Property value (or purchase price) < $100,000, or loan amount < $125,000 (or less than $50,000 per unit for multifamily)
Credit score < 680 or has major delinquencies over the past 2-4 years
Liquidity < $25,000 or not enough to cover down payment, closing costs, 3-6 months of payments, or rehab reserves
Newer investors taking on extensive rehab projects
12-month value-add loans, 24-month bridge loans, 12-month construction loans, and 30-year DSCR rental loans (both amortizing fixed and interest-only adjustable rates).