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

Rates starting at 6.55% fixed

Rates for June 1, subject to terms at bottom

Wait to Pay

Monthly payments during the work period (approximately) paid out of loan proceeds

Single Close

Renovate and hold with one loan

Great Service

We are a direct lender, we fund and hold at least through the renovation period

30 YEAR, SINGLE CLOSE. fix-to-rent up to 85% LTC. Fix then hold as a rental investment property. A “fix” can include any combination of renovation, rehabilitation, or upgrade work. If expanding the interior square use a Build-to-Rent loan instead. A single loan closing helps to minimize steps and paperwork, reduce closing costs, and provide rate certainty. Steps:

1) Apply.
2) Get permit and close the loan.
3) Build. The standard is draw funding for the first 6 months but there are long length options.
4) Lease the property and take the final draw.
5) Hold and operate as a rental investment property.

Builder Finance Inc. is a direct lender offering single close, Fix-to-Rent and Build-to-Rent since 2020. We work hard to make things easy for our clients, starting with our simple online application. Click Apply to begin the application process or simply call us or use the Get Started feature above to find out more information. Loan sizing and pricing information is below. Loans have a 30-year amortization schedule and a reserve to cover payments during the renovation period. The preferred project type is 1-4 unit residential with annual leases. That said, we consider 5+ unit multifamily. We also consider vacation/short-term rentals.

Loan Size

85% of Cost up to 65% ARV or 70% ARV with waiver.
Minimum DSCR: 1.15x, if credit is <680 1.35x.
Refer to term sheet for potential reductions.

Eligibility

Purpose: Business-purpose only, to rent on an annual basis. Short-term/Vacation renting 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.
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, or performed substantial renovation ($100,000+) of, at least 2 homes in past 10 years.
Liquidity Average of last 2 months bank statements is at least 6 months PITIA.
Approvals To close loan, have permit, other government approval, or evidence such approval is not required.
Other Refer to term sheet.

LTV Adjustments

If an item below is not met, the LTV limit may be reduced. Note that for full proceeds the loan must also meet draw conditions per the term sheet.

Appraisal Acceptable to BFI including 3 recent comparables with gross adjustments under 25%; no flags for declining values, over supply, or long marketing times; and, if a recent acquisition, the “as-is” value is at least equal to property purchase price.
Population Within 3 miles at least 10,000 people and growth projected.
Location No adverse site condition, e.g. against a busy road. Not in a majority unbuilt subdivision.

Interest rates and adjustments

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%, and 640-679 call.
Loan Size $1,000,000 or larger +0.25%.
LTV Waiver case-by-case, generally for well-experienced borrowers operating in infill locations.
Property Type If other than 1-unit house or townhouse, additional 0.20% to 0.35%.
Use If short-term rental case-by-case.

30 Year Fix-to-Rent