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That’s when you need to turn to non-bank lenders. Rental Home Financing is a non-bank lender ready to help you grow your rental portfolio. We don’t require any personal income documents such as tax returns, NO W2’s, NO personal debt to income ratios. – We rely on the property, and a credit worth borrower, to demonstrate the ability to repay the loan.
Why Hard Money Lenders Become Necessary for Investment Property Loans Financing
As you probably know, most people turn to traditional lenders when they initially need a mortgage to purchase their first homes.
Then, if they decide to purchase another home to use as a rental property, they return to that lender for a second mortgage.
That may be ideal for many investors, but traditional lenders simply aren’t a realistic option for those who want to build large portfolios of multiple investment properties, or are self-employed, or are not able to provide business or personal tax returns.
Eventually, they’ll reach a limit, past which it is nearly impossible to qualify for loans.
Traditional Loan Limitations
Here are Fannie Mae’s actual guidelines about how many properties they’ll finance for a single borrower (including some information about their requirements):
“If the borrower is financing a second home or investment property that is underwritten through DU, the maximum number of financed properties the borrower can have is ten. If the borrower will have one to six financed properties, Fannie Mae’s standard eligibility policies apply (for example, LTV ratios and minimum credit scores).
If the borrower will have seven to ten financed properties, the mortgage loan must have a minimum representative credit score of 720; all other standard eligibility policies apply.”
So, at best, an investor can only count on FNMA for 10 properties. Even then, they’ll need to hold a 720 credit rating in order to do so, which can be nearly impossible for those amassing a large portfolio of rental homes.
This is why nontraditional lenders have become a necessity for investment property loan financing past a certain point.
What Are Nonbank Lenders?
Though many people may not be familiar with them, nonbank lenders are actually nothing new.
One of the most common examples is auto companies. For decades, they provided their customers with loans, so they could use that money purchase to turn around and purchase their vehicles. A number of retail companies offer similar programs.
You may have heard of nonbank lenders referred to by a number of different names. Some of the most common versions are:
- Private Money/Equity Lenders
- Hard Money Lenders
- Nonbank Lenders
- Non-QM Lenders
- Stated Income Lenders
Whatever you call them, according to the Washington Post, “The mortgage market is now dominated by non-bank lenders.”
While this may be for many reasons, one is simply that investors want the freedom to buy as many homes as they can afford. These nonbank lenders offer the only form of investment property loan financing that allows them to do so.
Why Our Investment Property Loans Financing Is Different
At Rental Home Financing, we’ve worked hard to stand out from the crowd. So, while you have many options for your investment property loan financing needs, we hope you’ll consider what we bring to the table.
After all, there’s a reason that, since 2014, we’ve financed almost $500,000,000 worth of rental properties all over the country.
For one thing, we don’t look at your income. No income-to-debt ratios are ever used to determine your eligibility for a loan or how much you can receive. You also don’t have to dig up your tax returns for our review. We call this a DSCR loan with no-ratio to your income.
Instead, we are asset-based lenders, meaning we really only care about the property in question. As we know you will be using it for investment purposes, our only concern is merely confirming that the house will be able to provide sufficient cash flow and returns so you’re able to pay us back.
Other than that, we’ll review the property to assess the size of the loan being requested and check to see if the LTV (Loan-to-Value) ratio meets our threshold for the particular type of loan for which you’re applying.
You’ll also enjoy a dramatic reduction in the paperwork typically involved with the loan application process. Our company doesn’t have to navigate the same kind of bureaucratic red tape that banks do.
Our many loan options include everything from nonrecourse versions to those with 30-year amortizations. We offer a variety of term options for a variety of property types outlined below.
Here is a list of the various loan types we offer:
- Multifamily Lending
- 5-to-30 Year Fixed Rates
- Single Property Loans (30/30)
- 30-Year Loan Program
- Apartment Building Loans
- DSCR Loans with No Ratio to Income
- Stated Commercial Investor Loans
- Short-Term Rental Mortgage
There’s a lot of room for customization among all of them, too.
Most importantly, our sole focus is on serving clients who want to invest in multiple properties. With our blanket loans, you can even consolidate all of your monthly mortgage payments into just one.
Investment Home Refinance Loans
When you are ready to start refinancing any of your mortgages, come back and we’ll help you with that, as well. Our company loves forming these kinds of long-term relationships with clients. We provide the best cash out refinance for investment property.
Need Investment Property Loan Financing Right Away?
Are you ready to expand your real estate portfolio? Would you like to work with a nontraditional lender, one with a proven track record of helping investors just like yourself?
Do you want to team up with a nontraditional lender who can continue helping you build your investment property portfolio, year-after-year? If so, Rental Home Financing is here to help. Our company offers a wide range of investment property loan financing options.
Again, as a nontraditional lender, we don’t conduct personal income verifications. There are absolutely no limits on the number of properties we’ll finance, either. And, despite all of this, we can get you to closing within two-to-four weeks.
If you’re serious about amassing a large portfolio of investment properties, we’d love to hear from you. Contact us today and let’s discuss your portfolio’s future. Already have investment property picked out? Fill out our fast online mortgage application for a quick response.