Fix-to-Rent Loan | 30-Year Single-Close Options

Rates starting at 6.55% fixed

Rates for May 1st, subject to terms at bottom

85%

Loan to Cost Available

30 Year

Term

Single-Close

One Loan Closing

30 YEAR, SINGLE-CLOSE fix then hold as rental investment property. A “fix” can include any combination of renovation, rehabilitation, or upgrade work. Adding square footage also allowed. If totally new construction, use a Build-to-Rent loan instead.

Step 1) Apply. Step 2) Get permit and close the loan. Step 3) Renovate. The standard is draw funding for the first 9 months but there are other length options. Step 4) Lease the property and take the final draw. Step 5) Hold and operate as a rental investment property.

Loan size and interest rate pricing information below. Loans have a 30-year amortization schedule and a reserve to cover payments for approximately the initial period when work and leasing is being completed. Loans have a prepayment penalty that can be waived for a fee. For greater detail, request a term sheet.

Loan Size

85% of Cost up to 65% (70% with waiver) as-complete Value.
Minimum DSCR: 1.15x, if credit is <680 1.35x.
Refer to term sheet for potential reductions.

Adjustments to “base” Interest Rate

Rate lock up to 30 days. Rates at top reflect "base" interest rates and are subject to change daily based on prevailing market rates and items below.

Credit 780+ no change, 760-779 base+0.10%, 740-759 base +0.24%, 720-739 base +0.38%, 700-719 base +0.75%, 680-699 base+1.35%, 640-679 call
Loan Size $1,000,000 or larger +0.25%
LTV Waiver case-by-case
Property Type If other than 1-unit house or townhouse, additional 0.20% to 0.35%
Use If short-term rental case-by-case

Eligibility

Purpose: Business-purpose only, to rent on an annual basis; short-term subject to case-by-case approval.
Borrower LLC or potentially another business entity
Property 1-4 unit residential. Case-by-case for 5+ unit multifamily, ADUs, PUDs, and warrantable condos.
Geography Continental US subject to restrictions within certain states
Loan Amount $200,000 to $2,000,000, larger case-by-case.
Guarantor 640 minimum credit; current on all real estate debt; no "failed" real estate loans in past 3 years; no bankruptcy event in last 4 years; citizen, permanent resident alien, or case-by-case for other; if currently involved in litigation subject to lender review; and other customary items
Experience 1+ year of income producing real estate ownership within past 2 years. Built at least 2 homes in past 10 years or, for High Advance, minimum of 10 homes built within past 10 years.
Liquidity Average last 2 months bank statements: 6 months or 12 months PITIA for Standard and High Advance, respectively
Approvals To close loan, have permit or other government approval.
Other Refer to term sheet.

Fix-to-Rent