Blanket Loan Program!
As a real estate investor in business and looking to develop a portfolio of property for long term or even life long or beyond life long cash flow. You want to mange your properties as efficiently as possible. A Blanket Loan for your properties is the most effective and cheapest way to do so. The rates on a portfolio loan is often cheaper and always easier to manage. These are the program parameters for our nationwide blanket loan program. This program offers recourse and non recourse options
The Minimum stated fico is 660 for a blanket loan. With portfolios loans over $500,000 with compensating factors including great cash flow and lower loan to values we will consider lower minimum credit scores.
The minimum credit score is 620 for US citizens. The loan to value for Non-Recourse loan options will be based on overall credit and loan profile. All loans to foreign nationals are considered non-recourse. Non recourse loans are generally two million dollars or higher, except for foreign national program. As of October 1st 2017, we will now consider Non Recourse Portfolio blanket loans at $500,000 with credit scores as low as 660.
A Full tri-merged credit report is required. No bankruptcies or foreclosures in past 2 years are allowed to qualify for this program.
30 Year amortization with 5 and 10 year fixed rate options or an interest only option available.
30 Year fixed Blanket Loan is also available.
- Option 1. $250,000 to $2,000,000 Full Recourse
- Option 2. $500,000 to $100,000,000 Full Recourse or Non Recourse
- Option 3. $700,000 to $100,000,000 Full Recourse
- Option 4. $2,000,000 to $100,000,000 Non Recourse
Maximum Loan to Value:
Up to 75% on stabilized, leased properties (for foreign nationals & US Citizens). The borrowers credit score and the property cash flow may limit the maximum loan to value.
Minimum Debt Service Coverage Ratio:
We can go as low as 1.15% debt service coverage on a blanket loan. Some program options, loan amounts, credit scores and credit profiles will require higher debt service coverage ratios. Some program options require a minimum debt coverage ratio of 1.3% or higher. Generally speaking the higher the debt coverage ratio you qualify for higher loan to value and or lower rates. Best terms are at 1.25 DSCR or higher
The interest rates range from 5% to 7% for a Fixed rate and Stated period of generally five to ten years. 8% to 10% for 30 year fixed and loans under $500,000. Rates are higher for interest only options.
SFR, duplex, triplex, 4-unit, townhouse, MF 5-20 units. We can sometimes mix property types and cosider properties in different locations (even different states) in some scenarios (larger loan amounts)
Min Property Values:
For the best rate the minimum property value needs to be $100,000. We can go as low as $50,000 property values for single family homes. For multifamily properties each unit must have a minimum value of $30,000. For example if the property is a 10 unit building, then the value must be at least $300,000. If min property values are under these thresholds then they cannot be included into the blanket loan.
Term: 5-year-term, Yield Maintenance or Step Down: 10-year-term, Yield Maintenance or Step Down
After 90 days of ownership some options will allow you to use the full appraised value when calculating the maximum loan amount.
Some programs require 90% occupancy for 90 days. We offer options with no minimum occupancy or occupancy stability. Of course the better the occupancy the better the price.
Use of Funds:
Purchase, Refinance, Cash-Out Refinance
Nationwide Except North Dakota, South Dakota, and Alaska all options are not available in all states
- Cannot lend on manufactured housing.
- Can lend to foreign nationals.
- Release of an individual property will be permitted upon prepayment by borrower of 115% of the allocated loan amount tied to the specific property.
- Section 8 housing allowed.
- Loans are assumable with lender approval with lender fee
- No income verification for borrowers. Loans are based on cash flow of the properties
- Substitution clause the borrower could sub out up to 20% of the portfolio with similar properties (same value or better and same rent or better) without incurring the prepayment penalty.
Required Loan Docs:
- Executive Summary
- Data Tape (all that is necessary for rate quote)
- Loan application
- Past two years tax returns on deals above 2 million (personal and business if applicable)
- Leases on all properties
- Pictures of property
- Tri-merge credit report
- Corporate Docs (new LLC must be formed)