Question 1

Does the property need to be rented?

Accepted Answer

We accept 1 Vacancy on 1-2 unit SFR. 3-4 units and 5-12 units must have at least 75% occupancy. We use 90% of market rent to qualify the income of vacant units.

Question 2

What's your minimum DSCR ratio?

Accepted Answer

We offer a min DSCR ratio of .75 with 700+ credit on SFR 1-4 units. The loan calculator in the portal will provide pricing for the borrower below DSCR 1 if the option is available to the borrower.

Question 3

Do you have cash out seasoning requirements ?

Accepted Answer

Yes, We require 6 months seasoning for cash out loans and are limited by LTV, LTC

Question 4

Can I qualify with my AirBNB income?

Accepted Answer

We require 12 months verification of income for short term rentals and links to the rental listing. Additionally the property must be occupied at least 50% of the time in a 12 month period. The DSCR ratio is ultimately determined by market rent.

Question 5

How long do these DSCR loans take to close?

Accepted Answer

DSCR loans typically take 3 weeks to go when all parties are engaged. I typically estimate a 4 week close to set reasonable expectations.

Question 6

Who determines market rent?

Accepted Answer

Market rent is determined by a 3rd party appraiser who evaluates the comparable rents within the local real estate market.

Question 7

Does the monthly payment reflected on the offer include taxes and insurance?

Accepted Answer

The monthly payment outlined in our offer does not include taxes or insurance.

Question 8

Do I get charged a prepayment penalty if I pay down the mortgage?

Accepted Answer

It depends on your loan term. Prepayment penalties typically range from 0-5 years with a penalty structure of 5-4-3-2-1 % Depending on the year that you pay off.

Question 9

Requesting a draw ? What is the timeline to fund a draw?

Accepted Answer

The draw process requires you to provide receipts or invoices as proof of money spent and schedule a video call to see that the work is complete. Assuming timely submission of information to us, we try to fund draws within three business days.

Question 10

What is the max leverage you offer?

Accepted Answer

90% LTV. Borrowers generally have to come in with 10-15% down payment

Question 11

Can I use a HELOC of a down payment?

Accepted Answer

It depends, we don't allow for borrowed funds to be used for the down payment. If that is your plan it's important we plan in advance to ensure a smooth closing.

Question 12

Do I pay fees and interest on the whole loan amount or just the purchase financing?

Accepted Answer

You pay origination fees on the total loan amount. You only pay interest on borrowed money. If you haven't drawn from your rehab budget, you wont pay interest on undrawn funds.

Question 13

Do you order an appraisal?

Accepted Answer

Yes, a BPO on loan amounts under 500k and an appraisal on loans over 500k.

Question 14

What is counted as liquidity?

Accepted Answer

Checking, savings, and money market accounts.

Question 15

Do you do a hard credit pull?  How often?

Accepted Answer

We do an initial soft pull when releasing an offer or once an offer is accepted. We do a hard pull once the loan enters underwriting. Hard credit pulls are good for 90 days.