What Property Types Does Rental Home Financing NOT Finance?

While our lending programs cover a wide range of residential rental properties, certain property types fall outside our current underwriting guidelines. These exclusions exist because the properties either lack stable, documentable rental income, carry unusual risk profiles, or present collateral challenges that do not fit our portfolio lending model.

The following property types are not eligible for financing:

  • Properties valued under $75,000 -- however, up to 20% of properties in a portfolio may be below this threshold as long as the overall portfolio meets minimum value requirements
  • Manufactured housing -- factory-built homes on permanent or temporary foundations
  • Mobile homes and trailers -- regardless of whether they are situated on owned or leased land
  • Hotels and motels -- including extended-stay properties with long-term tenants, as these are classified as hospitality rather than residential
  • Weekly or vacation rentals -- properties leased on a nightly or weekly basis without standard residential lease agreements
  • Ground leases -- properties where the land is leased rather than owned by the borrower
  • Contract-for-deed arrangements -- properties sold under installment land contracts or lease-purchase options
  • Co-operative housing (co-ops) -- share-based ownership structures rather than fee-simple real estate
  • Vacant land or lots -- undeveloped parcels without income-producing structures

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Why Are These Property Types Excluded?

Our loans are underwritten based on the debt service coverage ratio (DSCR) -- the relationship between a property's rental income and the mortgage payment. Properties without stable, long-term lease income do not fit this underwriting model. Hotels, vacation rentals, and weekly rentals have volatile, seasonal revenue that makes reliable cash flow projections difficult. Manufactured housing, mobile homes, and co-ops present collateral valuation and depreciation challenges that do not align with our 30-year amortization structure.

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The $75,000 minimum value threshold ensures that every property in a portfolio carries enough appraised value to justify the underwriting and servicing costs. The 20% carve-out for below-threshold properties gives investors flexibility when a few lower-value assets are part of an otherwise strong portfolio.

My Property Is on the Exclusion List -- What Are My Options?

If a small number of excluded properties exist within a larger qualifying portfolio, you may be able to finance the eligible properties separately and hold the excluded ones under different financing. If you are unsure whether specific properties in your portfolio qualify, contact our team for a preliminary review. In some edge cases -- particularly with properties that are borderline on value or classification -- we may be able to accommodate them on a case-by-case basis.

Have Questions About Property Eligibility?

Not every property fits, but your portfolio still might. Let us review your assets and tell you exactly what qualifies.

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See the full list of property types we do accept under our blanket and multifamily loan programs.