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 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.

PurchaseFICOMaximum Loan-to-Value (LTV)Maximum Loan-to-Cost (LTC)
740+Up to 80% of the As-Is ValueUp to 80% Loan-to-Cost
700 – 739Up to 80% of the As-Is ValueUp to 80% Loan-to-Cost
680 – 699Up to 75% of the As-Is ValueUp to 75% Loan-to-Cost
660 – 679Up to 60% of the As-Is ValueUp to 60% Loan-to-Cost
RefinanceFICOMaximum Loan-to-Value (LTV)
740+Up to 80% of the As-Is Value
700 – 739Up to 80% of the As-Is Value
680 – 699Up to 75% of the As-Is Value
Cash-OutFICOMaximum Loan-to-Value (LTV)
740+Up to 75% of the As-Is Value
700 – 739Up to 75% of the As-Is Value
680 – 699Up 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

Cons

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.

 

PurchaseFICOMaximum Loan-to-Value (LTV)Maximum Loan-to-Cost (LTC)
740+Up to 80% of the As-Is ValueUp to 80% Loan-to-Cost
700 – 739Up to 80% of the As-Is ValueUp to 80% Loan-to-Cost
680 – 699Up to 75% of the As-Is ValueUp to 75% Loan-to-Cost
660 – 679Up to 60% of the As-Is ValueUp to 60% Loan-to-Cost
RefinanceFICOMaximum Loan-to-Value (LTV)
740+Up to 80% of the As-Is Value
700 – 739Up to 80% of the As-Is Value
680 – 699Up to 75% of the As-Is Value
Cash-OutFICOMaximum Loan-to-Value (LTV)
740+Up to 75% of the As-Is Value
700 – 739Up to 75% of the As-Is Value
680 – 699Up 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

Cons

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

Frequently Asked Questions

How does a Long Term Rental Loan compare to other Commercial Real Estate Loan options?

Financing TypeFinancing AmountRateTermTime to Fund
Bridge Loan$500k – $20M6.00% – 10.99%12 months – 3 years2- 4 weeks
CMBS Loan$2M – $100M7.09% – 8.94%5-, 7-, 10-year fixed (25/30 year amortization)30 – 45 days
Construction Loan$50k – $20M10.25% – 11.99%18 months2 – 4 weeks
CPACE Financing$1M – $100M4% – 8%15 – 30 years30 – 45 days
Fix and Flip Loan$50k – $7.5M10.25% – 11.99%12 – 18 months2 – 4 weeks
HUD and FHA Loan$1M – $100M7.18% – 8.125%5-, 7-, 10-year fixed (20 – 30 year amortization)60 – 120 days
Long Term Rental Loan$55k – $5M10.25% – 11.99%5/7/10 year hybrid arms; 30 year amortization2 – 4 weeks
SBA 504 Loan$250k – $5M7.12% – 10.25%10 – 25 years45 – 60 days
USDA Loan$2M – $25M9.75% – 12.5%up to 30 years60 – 90 days
Long Term Rental Loan
Financing Amount$55k – $5M
Rate10.25% – 11.99%
Term5/7/10 year hybrid arms; 30 year amortization
Time to Fund2 – 4 weeks
Bridge Loan
Financing Amount$500k – $20M
Rate6.0% – 10.99%
Term12 months – 3 years
Time to Fund2- 4 weeks
CMBS Loan
Financing Amount$2M – $100M
Rate7.09% – 8.94%
Term5-, 7-, 10-year fixed (25/30 year amortization)
Time to Fund30 – 45 days
Construction Loan
Financing Amount$50k – $20M
Rate10.25% – 11.99%
Term18 months
Time to Fund2 – 4 weeks
CPACE Financing
Financing Amount$1M – $100M
Rate4% – 8%
Term15 – 30 years
Time to Fund30 – 45 days
Fix and Flip Loan
Financing Amount$50k – $7.5M
Rate10.25% – 11.99%
Term12 – 18 months
Time to Fund2 – 4 weeks
HUD and FHA Loan
Financing Amount$1M – $100M
Rate7.18% – 8.125%
Term5-, 7-, 10-year fixed (20 – 30 year amortization)
Time to Fund60 – 120 days
SBA 504 Loan
Financing Amount$250k – $5M
Rate7.12% – 10.25%
Term10 – 25 years
Time to Fund45 – 60 days
USDA Loan
Financing Amount$2M – $25M
Rate9.75% – 12.5%
Termup to 30 years
Time to Fund60 – 90 days

Ready to take the next step and apply for a Long Term Rental Loan?

Free Consultation -No Obligation

Give us a call to see how we can help your business