Long Term Rental Loans
Long term Rental Loans can be used for the purchase and refinance of non-owner occupied rental properties including 1-4 family, 5-9 unit properties, condominiums, townhomes and planned unit developments (PUDs)
Free Consultation – No Obligation
Long Term Rental Loans
- What is Long Term Rental Loan?
- How does Long Term Rental Loan Work?
- How Can I Use My Long Term Rental Loan?
- How Can I Qualify For a Long Term Rental Loan?
- What Are The Advantages of a Long Term Rental Loan?
- What Are The Disadvantages of a Long Term Rental Loan?
- Pros and Cons of Long Term Rental Loans
- How Do I Apply For a Long Term Rental Loan?
- What If I Am Declined For a Long Term Rental Loan?
What is a Long Term Rental Loan?
Long term rental financing applies to non-owner occupied residential properties that are 1-4 family, 5-9 unit properties, condominiums, townhomes and planned unit developments (PUDs) in urban and suburban areas (cannot be rural) that you intend to rent long term.
How does Long Term Rental Loan Work?
Collateral:
Non-Owner Occupied 1-4 Family Real Estate; Condos; Townhomes; Planned Unit Development (PUD)
LTV:
Purchase: Lesser of up to 80% of the As-Is Value or Up to 80% Loan-to-Cost
Refinance: Up to 80% of the As-Is Value
Cash-Out: Up to 75% of the As-Is Value
Amortization Options:
30-Year Fixed, Hybrid ARMS (5/1, 7/1, 10/1) & Interest-Only Options Available
Property Values:
“As Is” Appraised Value Must Be $100k or Greater
Loan Amount:
$55k – $2M
Rates:
Starting at 10.25%
Debt Service Coverage Ratio (DSCR):
1.10
Minimum FICO:
680
How Can I Use My Long Term Rental Loan?
To build, purchase and refinance non-owner occupied rental properties
How Can I Qualify For a Long Term Rental Loan?
The 2 most important criteria are your FICO score and your cash flow (DSCR 1.10). In addition, you must be an LLC.
Purchase | FICO | Maximum Loan-to-Value (LTV) | Maximum Loan-to-Cost (LTC) |
---|---|---|---|
740+ | Up to 80% of the As-Is Value | Up to 80% Loan-to-Cost | |
700 – 739 | Up to 80% of the As-Is Value | Up to 80% Loan-to-Cost | |
680 – 699 | Up to 75% of the As-Is Value | Up to 75% Loan-to-Cost | |
660 – 679 | Up to 60% of the As-Is Value | Up to 60% Loan-to-Cost |
Refinance | FICO | Maximum Loan-to-Value (LTV) |
---|---|---|
740+ | Up to 80% of the As-Is Value | |
700 – 739 | Up to 80% of the As-Is Value | |
680 – 699 | Up to 75% of the As-Is Value |
Cash-Out | FICO | Maximum Loan-to-Value (LTV) |
---|---|---|
740+ | Up to 75% of the As-Is Value | |
700 – 739 | Up to 75% of the As-Is Value | |
680 – 699 | Up to 70% of the As-Is Value |
What Are The Advantages of a Long Term Rental Loan?
- Relatively low rates
- Long term Fixed and Hybrid ARMS
- Interest-only Options Available
What Are The Disadvantages of a Long Term Rental Loan?
- Must be non-owner occupied residential properties
- Must be in urban and suburban locations (not rural)
Pros
- Relatively low rates
- Long term Fixed and Hybrid ARMS
- Interest-only Options Available
Cons
- Must be non-owner occupied residential properties
- Must be in urban and suburban locations (not rural)
How Do I Apply For a Long Term Rental Loan?
Give us a call, or fill out the Contact Us form, discuss your project, provide us with an estimate of your FICO score and we’ll get you a soft quote
What If I Am Declined For a Long Term Rental Loan?
If your FICO or Collateral do not meet Long Term Rental guidelines we have several other loan products that will meet your needs.
What is a Long Term Rental Loan?
Long term rental financing applies to non-owner occupied residential properties that are 1-4 family, 5-9 unit properties, condominiums, townhomes and planned unit developments (PUDs) in urban and suburban areas (cannot be rural) that you intend to rent long term.
How Does a Long Term Rental Loan Work?
Collateral:
Non-Owner Occupied 1-4 Family Real Estate; Condos; Townhomes; Planned Unit Development (PUD)
LTV:
Purchase: Lesser of up to 80% of the As-Is Value or Up to 80% Loan-to-Cost
Refinance: Up to 80% of the As-Is Value
Cash-Out: Up to 75% of the As-Is Value
Amortization Options:
30-Year Fixed, Hybrid ARMS (5/1, 7/1, 10/1) & Interest-Only Options Available
Property Values:
“As Is” Appraised Value Must Be $100k or Greater
Loan Amount:
$55k – $2M
Rates:
Starting at 10.25%
Debt Service Coverage Ratio (DSCR):
1.10
Minimum FICO:
680
How Can I Use My Long Term Rental Loan?
To build, purchase and refinance non-owner occupied rental properties
How Can I Qualify For a Long Term Rental Loan?
The 2 most important criteria are your FICO score and your cash flow (DSCR 1.10). In addition, you must be an LLC.
Purchase | FICO | Maximum Loan-to-Value (LTV) | Maximum Loan-to-Cost (LTC) |
---|---|---|---|
740+ | Up to 80% of the As-Is Value | Up to 80% Loan-to-Cost | |
700 – 739 | Up to 80% of the As-Is Value | Up to 80% Loan-to-Cost | |
680 – 699 | Up to 75% of the As-Is Value | Up to 75% Loan-to-Cost | |
660 – 679 | Up to 60% of the As-Is Value | Up to 60% Loan-to-Cost |
Refinance | FICO | Maximum Loan-to-Value (LTV) |
---|---|---|
740+ | Up to 80% of the As-Is Value | |
700 – 739 | Up to 80% of the As-Is Value | |
680 – 699 | Up to 75% of the As-Is Value |
Cash-Out | FICO | Maximum Loan-to-Value (LTV) |
---|---|---|
740+ | Up to 75% of the As-Is Value | |
700 – 739 | Up to 75% of the As-Is Value | |
680 – 699 | Up to 70% of the As-Is Value |
What Are The Advantages of a Long Term Rental Loan?
- Relatively low rates
- Long term Fixed and Hybrid ARMS
- Interest-only Options Available
What Are The Disadvantages of a Long Term Rental Loan?
- Must be used non-owner occupied residential properties
- Must be in urban and suburban locations (not rural)
Pros and Cons of Long Term Rental Loans
Pros
- Relatively low rates
- Long term Fixed and Hybrid ARMS
- Interest-only Options Available
Cons
- Must be non-owner occupied residential properties
- Must be in urban and suburban locations (not rural)
How Do I Apply For a Long Term Rental Loan?
Give us a call, or fill out the Contact Us form, discuss your project, provide us with an estimate of your FICO score and we’ll get you a soft quote
What If I Am Declined For a Long Term Rental Loan?
If your FICO or Collateral do not meet Long Term Rental guidelines we have several other loan products that will meet your needs.
Long Term Rental Loan Amount, Rate, Term and Time to Fund
-
Loan Amount
$55k - $5M -
Interest Rate
10.25% - 11.99% -
Term
5/7/10 year hybrid arms; 30 year amortization -
Time to Fund
2 - 4 weeks
Frequently Asked Questions
How does a Long Term Rental Loan compare to other Commercial Real Estate Loan options?
Financing Type | Financing Amount | Rate | Term | Time to Fund |
Bridge Loan | $500k – $20M | 6.00% – 10.99% | 12 months – 3 years | 2- 4 weeks |
CMBS Loan | $2M – $100M | 7.09% – 8.94% | 5-, 7-, 10-year fixed (25/30 year amortization) | 30 – 45 days |
Construction Loan | $50k – $20M | 10.25% – 11.99% | 18 months | 2 – 4 weeks |
CPACE Financing | $1M – $100M | 4% – 8% | 15 – 30 years | 30 – 45 days |
Fix and Flip Loan | $50k – $7.5M | 10.25% – 11.99% | 12 – 18 months | 2 – 4 weeks |
HUD and FHA Loan | $1M – $100M | 7.18% – 8.125% | 5-, 7-, 10-year fixed (20 – 30 year amortization) | 60 – 120 days |
Long Term Rental Loan | $55k – $5M | 10.25% – 11.99% | 5/7/10 year hybrid arms; 30 year amortization | 2 – 4 weeks |
SBA 504 Loan | $250k – $5M | 7.12% – 10.25% | 10 – 25 years | 45 – 60 days |
USDA Loan | $2M – $25M | 9.75% – 12.5% | up to 30 years | 60 – 90 days |
Long Term Rental Loan | |
Financing Amount | $55k – $5M |
Rate | 10.25% – 11.99% |
Term | 5/7/10 year hybrid arms; 30 year amortization |
Time to Fund | 2 – 4 weeks |
Bridge Loan | |
Financing Amount | $500k – $20M |
Rate | 6.0% – 10.99% |
Term | 12 months – 3 years |
Time to Fund | 2- 4 weeks |
CMBS Loan | |
Financing Amount | $2M – $100M |
Rate | 7.09% – 8.94% |
Term | 5-, 7-, 10-year fixed (25/30 year amortization) |
Time to Fund | 30 – 45 days |
Construction Loan | |
Financing Amount | $50k – $20M |
Rate | 10.25% – 11.99% |
Term | 18 months |
Time to Fund | 2 – 4 weeks |
CPACE Financing | |
Financing Amount | $1M – $100M |
Rate | 4% – 8% |
Term | 15 – 30 years |
Time to Fund | 30 – 45 days |
Fix and Flip Loan | |
Financing Amount | $50k – $7.5M |
Rate | 10.25% – 11.99% |
Term | 12 – 18 months |
Time to Fund | 2 – 4 weeks |
HUD and FHA Loan | |
Financing Amount | $1M – $100M |
Rate | 7.18% – 8.125% |
Term | 5-, 7-, 10-year fixed (20 – 30 year amortization) |
Time to Fund | 60 – 120 days |
SBA 504 Loan | |
Financing Amount | $250k – $5M |
Rate | 7.12% – 10.25% |
Term | 10 – 25 years |
Time to Fund | 45 – 60 days |
USDA Loan | |
Financing Amount | $2M – $25M |
Rate | 9.75% – 12.5% |
Term | up to 30 years |
Time to Fund | 60 – 90 days |
Ready to take the next step and apply for a Long Term Rental Loan?
Free Consultation -No Obligation