FBC Funding offers cash flow financing to experienced real estate entrepreneurs. This type of financing allows you to access capital without taking on debt or diluting your equity. No Equity Rental Funding is a great, safe and flexible financing option that can help you grow your real estate business.

Key features of No Equity Rental Funding Loans

• No debt or equity dilution. You do not have to take on any debt or give up any equity in your business.
• No Liens on your property.
• No Balloon Payments.
• No origination fees. No upfront fees associated with the No Equity Rental Funding Program
• No Appraisal
• No impact on credit score. No Credit inquiry.
• No Trade Lines on your Credit Report.
• Fast funding, you can get funded in as little as 7 days.

To qualify for No Equity Rental Funding:

• Be a real estate entrepreneur with at least 3 years of experience as investor or property manager.
• Have a minimum of $2,500 in positive monthly cash flow.
• Have an acceptable property type.
• The property or portfolio is no greater than 75% encumbered

Use No Equity Rental Funding for a variety of purposes, including:

• Buying a new property
• Making renovations
• Paying off debt
• Funding a business expansion

Acceptable Property Types for No Equity Rental Funding:

• 1-4 residential investment properties portfolios.
• 5+ Multifamily Investment properties portfolios or single properties.
• Short Term Rental Properties.
• Hotels and Motels.
• Self Storage.
• Property Managers who have successful businesses with significant Cash Flow.

Terms for No Equity Rental Funding:

• The annual financing fee is typically 10-16%.
• The term of the funding is typically 1-5 years.
• You will need to make fixed monthly payments.
• Funding is $50,000 to $2,000,000 per entity
• Available Nationwide

The No Equity Rental Loan is a great option for experienced investors or property managers who are looking for quick financing that will not tie up your property or increase your DTI or DSCR.

We can even consider the cash flow of the property being purchased if we can verify the cash flow with an accurate 12 month profit and loss statement and supporting documentation.

To learn more about the No Equity Rental Funding, call 888-848-3114

or

Click here to schedule a free loan consultation.

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RESIDENTIAL FIX AND FLIP LOANS FOR INVESTORS:

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FBC Funding Partners with Real Estate Investors, helping new and experienced investors meet their short term and long term financing needs.

We are Real Estate Investors, Lenders and Mortgage Brokers ourselves. We offer many financing options for residential and multifamily investment properties including:

Fix and Flip, Rental Loans, Bridge Loans, Construction Loans, Portfolio Loans, Multifamily Loans and Home Equity Investments 

If you need Hard Money, Conventional or Alternative Financing for your residential, multifamily, mixed use or commercial properties we can help.

Programs Include:

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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

Fico:

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.

Non-Recourse options:

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.

Credit: 

A Full tri-merged credit report is required.  No bankruptcies or foreclosures in past 2 years are allowed to qualify for this program.

Loan Terms:

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.

Loan Size:

• 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

Interest Rate:

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.

Property Types:

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.

Pre-Payment Penalty:

Term: 5-year-term, Yield Maintenance or Step Down:                                                                                               10-year-term, Yield Maintenance or Step Down

Seasoning:

After 90 days of ownership some options will allow you to use the full appraised value when calculating the maximum loan amount.

Occupancy:

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

Territory:

Nationwide Except North Dakota, South Dakota, and Alaska all options are not available in all states

Special:

• 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)
• PFS
• 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)

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FBC Funding has a wide variety of financing programs for the Estate Investor. These programs range from Residential to Commercial, Fix and Flip to Long Term Rental, Stated Income to Lite Doc to Full Doc, to Individual Properties to Blanket Loans.  As a Broker we do not just market one set of programs to fit all borrowers, but a we tailor the program to meet a borrowers needs.

Here are just a few of the options we offer:

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For Real Estate Investors looking to own and manage a portfolio of residential investment properties blanket loans are much more accessible today. There are many reasons to consider a blanket mortgage that include; ease of management, free up cash for additional investments and refinance to lower interest rates.

Ease of Management: Some investors have 10, 20 or more single family and 2 – 4 unit investment properties. They are much easier to manage if you have one lender. This is especially true if the lender escrows for taxes and insurance. Imagine the potential chaos of owning 12 properties with 12 mortgages from 7 lenders and 2 lenders do not escrow at all. 3 lenders escrow for taxes only and 2 lenders escrow for taxes and insurance. Now add to that chaos the the properties are in 4 different counties and property taxes are due at different times. A Blanket Loan creates an ease of management because there is one lender who escrows for taxes and insurance so there is only one payment per month. I do not mean to imply that an owner does not monitor tax and insurance payments. This is always necessary for many reasons. One loan with one monthly payment makes this much easier.

Cash for Additional Investments: Many investors are in the growth mode and are purchasing additional properties. A blanket loan allows an opportunity to take the equity from residential properties as a cash out refinance or an equity line of credit that can be used to purchase additional properties. Generally, the permanent term loan offers better rates than the equity line of credit. The advantage of the line of credit is you only pay interest on the amount of money you use. This is a big advantage for fix and flip investors or if the borrowers build up their portfolio to get another blanket mortgage, freeing up the equity line of credit to purchase additional properties. With the funds from the line of credit you are essentially a cash buyer.

Refinance to Lower Rates: Many investors build their residential real estate portfolios by using hard money loans. These are short term loans with higher rates. Some offer extended terms but the rates are still high. The blanket loan rates are much lower commercial mortgage rates and they are for longer terms. Some terms are 25 or 30 years fixed, while most have a 5 or 10 year balloon or adjustable feature.

Understanding Balloon Mortgage Loan Qualifications: Understanding the advantages of a Blanket Mortgage is good. We also need to understand what a this type of mortgage is and how to qualify. First of all a blanket mortgage is a commercial loan product. Commercial loan products are all portfolio programs. There is no secondary market like FNMA, FHMLC or GNMA to buy these mortgages from lenders. As such most of these loans are 5 to 10 year terms. The 30 year fixed rate options exist, but the rates are substantially higher. To fully understand what it means to be a portfolio product, consider this real scenario. A lender has $100 million dollars to lend. That sounds like a lot of money, but after they make 100 $1 million dollar portfolio mortgages they can no longer lend. This happens often to the local banks. They have a good portfolio product, but they run out of funds to lend. This should also help us to understand why the rates are higher than residential owner occupied conventional loans.

Because of  federal regulation of residential mortgages many lenders only lend on portfolios of 5 or more units. To ensure they maximize their profits without increasing costs many lenders also lend on portfolios of $500,000 dollars or more. In general the borrower must have decent credit, the property must have minimum cash flow (minimum debt service coverage) and the portfolio should be stabilized (occupied).

February 2018 update:We can now lend on small portfolios of $200,000 or more with a minimum of 2 properties. Minimum property value is $60,000. Minimum loan is $200,000.

For more information on Blanket Mortgage Loans complete the Quick Quote Request on the right side bar or

email louisj@fbcfunding.com

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