Super small multi-family loans available
in conventional packages. These are not
commercial loans.
Loan Options:
- DSCR (Debt Service Coverage
Ratio): This program is known for its ease of
qualification and relies on rental income covering the property's PITI (Principal,
Interest, Taxes, and Insurance). Market rents must cover. This has highest
rates in the 8.25 range APR 9.112
- Full Documentation: This
program offers the best available rates and requires a
more thorough analysis of your financial situation, including income
verification through tax returns and bank statements. This has lowest
rates in the 7.75 range APR 8.201
- Bank Statement Program: This
option falls between the DSCR and Full Doc programs in terms of rate
and documentation requirements. However, it allows you to utilize only
one bank account for income verification. Rates in the 8 range APR 8.309
Additional
Information:
- Minimum Loan Amount:
minimum loan amount is $200,000, which aligns perfectly with needs.
- Appraisal and Rent Survey: We need an appraisal for the property, typically costing around $3,000,
and a rent survey for $150. Some lenders might require two
appraisals. Full interior inspection.
- Tax and Bank Statements: We need the subject property leases and 24 months of your IRS tax
returns and bank statements. Bank statements all pages.
- Profit and Loss Statement: Borrower
probably has not completed 2023 returns. P&L statement for
the years 2023 and 2024. Ask initially accept a P&L from borrower
QuickBooks, but lender may require a formal version from CPA later. CPA
information takes a week or more depending on tax season. Getting borrower
paperwork is time consuming and upload to the broker lender source, by the
time you have approval the P&L needs to be date down/updated to
include the current month.
- Origination Points: Your
origination fees typically range from two to two and three-quarter
points, depending on the loan product and specific situation. This
compares favorably to commercial lenders who might charge higher fees and
have stricter loan terms.
Advantages over
Commercial Lenders:
- Competitive Rates: Lower
rates/ competitive rates compared to commercial lenders.
- Flexible Terms: We
offer 30-year loan terms, which are generally unavailable from commercial
lenders.
- Smaller Loan Amounts: We
can finance properties below $200,000, unlike Chase and other
commercial lenders who might have higher minimums.
VESTING-
likely is in LLC – then you need to match this with broker choice. Very important: subject property
MUST be in good condition and fully leased.
Rates change daily, sometimes twice a day. This is not a
commitment to lend. This is not a rate lock. Rates are an
example of today 3.2.2024. Equal Opportunity Lender.
I'm confident that
we can provide with a financing solution that meets borrower needs. and helps you achieve your investment goals.
Please don't hesitate to call if you have any questions or would like to
discuss this specific situation further.
