As the residential real estate market began to experience some changes in 2018, several private lending companies started offering long-term rental loans to single family home investors. Most property investors purchase homes with the intent to fix and flip, but there are many who invest and plan to hold as a long-term rental. Rental home investors now have a number of options to get private financing  with a term of 10 to 30 years. The interest rates for rental loans are typically in the range of 5% to 7% which is much lower than a typical short-term private/hard money loan.

Below are several private mortgage lenders on our platform that offer long-term loans for single family rental homes.

 

LendingOne

LendingOne LLC, based in South Florida, was the first private lending company in our network to offer long-term 30-year rental home loans. Property types include single family & multi-family properties 2-4 units. They can fund long-term loans for a purchase or refinance and offer cash out refi loans with as little as 3 months of seasoning. They have loan options for single properties or portfolios. Portfolios must be at least 5 properties and $500,000 minimum loan amount. Here are some of their guidelines:

  • Loan Term: 5/1 ARM or 30-year Fixed
  • Minimum DSCR: 1.0
  • Loan Amounts: $100,000 to $2,000,000
  • Interest Rates: 4.99% to 7.99%
  • Loan-to-Value: up to 75%
  • Origination Fee: 1.5 to 3.0
  • Prepayment Penalty: 3 years
  • FICO Score: 620 minimum
  • Property Types: Single Family Home, Condo, 2-4 Units
  • Lending Areas: 45 States
  • No Seasoning Requirements – up to 75% LTV for purchase
  • Vacant property owned over 12 months qualify
  • Stated Income
  • Foreign Nationals OK

RCN Capital

RCN Capital, based in Connecticut, is the only long-term rental lender in our network that lends in all 50 states. Here are their rental loan guidelines:

  • Loan Term: 30 Years
  • Loan Amounts: $75,000 to $1,000,000
  • Interest Rates: 4.99% to 7.99%
  • Loan-to-Value
    • Purchase: Lesser of up to 80% of the As-Is Value or Up to 80% Loan-to-Cost
    • Refinance: Up to 75% of the As-Is Value
    • Cash Out: Up to 75% of the As-Is Value
  • Property Value: As-Is Appraised Value Must Be Greater Than $100k
  • FICO Score: 660 minimum
  • Property Types: Single Family Home, Condo, Townhome, Planned Unit Development, 2-4 Units
  • Lending Areas: 50 States

Anchor Loans

Anchor Loans, based in Los Angeles, is the largest fix & flip private lending company in the United States and the first to fund $1 billion in loans in a single year. They started their long-term rental program in late 2018. One of the very unique things about their program is for a portfolio of properties, they do not have a minimum property value, so long as the loan amount is $150,000 or greater. For example, if an investor owns 10 homes in Indiana and each has a value of around $30,000, the investor can get a single loan on the entire portfolio of properties from Anchor Loans. Additionally, they offer multiple term options ranging from 3 years to 30 years.

  • Loan Term Options:
    • 3-year with balloon
    • 5/1 ARM no balloon
    • 10/1 ARM no balloon
    • 30-year fixed fully amortizing
  • Minimum DSCR: 1.20
  • Minimum Loan Amount:
    • 1 Property – $50,000
    • Multiple Properties – $150,000
  • Maximum Loan Amount:
    • 1 Property – $750,000
    • Multiple Properties – $7,500,000
  • Interest Rates: 6.625% to 8.20%
  • Loan-to-Value: Up to 75%
  • Origination Fee: 1.0 to 2.5
  • FICO Score: 620 minimum
  • Property Types: Single Family Home, Condo, 2-4 Units, Multifamily up to 20 units
  • Lending Areas: 46 States
  • Prepayment Penalty: 5% in year 1, stepping down 1% every year thereafter
    • After year 5, there is no prepay penalty