DSCR Refinance Loan for SFR Rental in San Antonio, Texas

Easy Street Capital, a direct private real estate lender, funded a $526,850 1st lien position rental refinance loan secured by a single-family home in San Antonio, Texas. The property value was estimated at $755,000 so our loan-to-value was 69.8%. We paid off a previous mortgage balance of $293,426. The loan was structured with a fixed interest rate of 8.875% and required interest-only payments for the first 10 years of the term, amortized on a 20-year schedule thereafter. The loan carries prepayment protection of annual step-down penalties from 3% to 1% for the first 36 months with the remaining 324 months open without penalty prior to maturity. The subject property is a 2,644-square-foot single-family home built in 2022. It was vacant at closing and had a DSCR of 0.75. The home has four bedrooms, four bathrooms, two laundry rooms, an inground pool, and many other desirable features and high-end finishes. It is in pristine condition (C1 rating per the third-party appraisal) as it is a new construction home. The home also features five fireplaces, a wet bar, an outdoor terrace, an outdoor kitchen, and a two-car garage. The Borrower had good credit. We charged 3.63% origination points. The loan term was set at 30 years. This SFR rental refinance loan was funded in June 2023.