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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