Rental Loan, Blanket Loan or Portfolio Loan Program

Rental or Blanket Loan

Rental Loan Programs

Real Estate Investors who want to buy and hold property need long term financing. Our long term financing is for business owners, and we rarely require income verification such as personal or business tax returns. We offer no income verification rental loan programs for investors who own one property to portfolios of hundreds of properties. Like all the Real Estate Investor funding programs offered through FBC Funding, we have many options. We are not a one size fits all lender. The mortgage can be on one property with a minimum loan amount of $100,000 or a small blanket loan with as few as two properties or a portfolio loan of several million dollars. Whichever general category (single loan, blanket loan, or portfolio loan) there are many options in each category.
As a review of our different product categories here are the basic qualifications with a few options and the range of terms associated with each category.

 Rental Loan Program – Single Loan – One to Four Unit Properties

Here are the general guidelines for the rental loan program for a single loan of a one to four unit residential non owner-occupied investment property owned by a business and financed in the name of the business. The rental loan is also known as a DSCR loan. DSCR is the Debt Service Coverage Ratio loan. When a Rental Loan is termed a DSCR loan that means the income that the property produces is the only income used to qualify for the mortgage. These guidelines are for business purpose non owner-occupied properties. These are not conventional loans and the rates and guidelines do not compare to conventional loans.

  • Loan Size: $100,000 up to $3,000,000
  • Loan to Value: Purchase up to 85%
  • Loan to Value: Cash Out Refinance up to 80%
  • Loan to Value: no seasoning 80% for BRRRR return of investment option
  • Minimum Credit Score: 640 for up to 80%
  • Minimum Credit Score: 720 for 85%
  • Cash Reserves: 3 to 6 months of PITI
  • Current Rates: 4.25% to 6.5% depending on Credit, LTV, Loan Size, Location, and Cash Flow
  • No Ownership Seasoning Options – Great for BRRRR Investment Strategy
  • Vacant Property Options
  • Vacation Rental / Short Term Rental Options up to 85% LTV
  • No Debt ratio options
  • And More

Many investors have scenarios that are square pegs and don’t fit into round holes, we have many options to help a lot of them out. The things we cannot overcome are low credit scores and low property values. But recent updates have allowed us to offer the Long Term Rental Program with credit scores down to 640. This is very good considering we are not verifying personal income and funding these loans based off of the cash flow of the property even though the rents are paid to the owner.

 

Blanket Loan Program

The blanket loan is a loan on a few properties. I also refer to them as small portfolio loans. Blanket loans are often used to cross collateralize the purchase of another property. That is why they are called blanket loans, one loan blankets 2 or more properties. Here are general guidelines for blanket loan program.

  • Loan Size: Minimum $150,000
  • Minimum # of Properties: 2
  • Minimum # of Units: 2
  • Minimum Property Value: $70,000 (we can add a property with a value of $60,000 if most of the properties are over $75,000. This option reduces the maximum LTV to 70%)
  • Loan to Value: up to 80%
  • Minimum Credit Score: 660
  • Cash Reserves: 3 to 6 months of PITI
  • Cash Flow Requirement: Minimum 1.25 Debt Coverage Ratio
  • Current Rates: 4.5% to 7%

 

Portfolio Loan Program

A portfolio loan is a large blanket loan. Where our blanket loan starts at 2 properties and $250,000 minimum loan amount, our portfolio program is for larger groups of properties (portfolio’s) and larger loan amounts. Here are the general portfolio guidelines. Our portfolio programs also allow multifamily properties.

  • Loan Size: Minimum Loan is $500,000 Maximum Loan is $100,000,000. Better terms for loan amounts over $2,000,000
  • Minimum Number of Properties: 5
  • Minimum Number of Units: 5
  • Loan to Value:  Up to 75%
  • Minimum Credit Score: 660 (exceptions for lower LTV and stronger cash flow)
  • Cash Flow Requirement: Debt Coverage Ratio as low as 1.15% or better
  • Cash Reserves: 6 months on loans less than $2,000,000 12 months on loans over $2,000,000
  • Recourse: Full Recourse on some loans under $2,000,000
  • Non Recourse: Option available for loans $500,000 to $2,000,000 and on always for loans over $2,000,000
  • Current Rates: 4.25% to 6.5% depending on LTV, Credit, Cash Flow, and Loan Size
  • Interest Only Option Available
  • Property Types: Residential 1 – 4 units, 5 plus units, and mixed-use properties that are primarily residential

 

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