Typical terms for loans on both MF and SFH investments

Member since 2021 · 7 posts · 2 votes

Ive got several properties ive purchased with cash and am looking to refinance. One of them is a very recent purchase (closed two days ago) and one is a commercial property I am renting out and have a stabilized NOI. I have called and talked to several lenders and have some lists.

Id like to ask from those with experience who you are using and what type of terms are you seeing on:

-Seasoned SFH rentals (after 6 months)
-Commercial or MF properties with stabilized NOI
-Unseasoned SFH rentals (financed right after closing)

My goal is to ask advice on who the best lender out there is assuming my credit and equity is strong. Thanks in advance.

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Alex Roter
Financial Advisor · Los Angeles, CA · Member since 2021 · 141 posts · 58 votes
4y
Hey @Account Closed, based on today's market, here are the terms I've come across regarding Soft-Money Loans (better than hard money)
Seasoned Single Family Home Rentals (after 6 months from purchase date):
- Up to 75% Loan-to-Value (newly appraised or After-Repair-Value)
- 30-year fixed term
- No Debt-to-Income Ratio Analysis Required
- No Debt-Service-Coverage Ratio Analysis Required
- Rates starting in the high 4% range
Un-seasoned Single Family Home Rentals (prior to 6 months seasoning, 1-day seasoning okay):
- Up to 75% Loan-to-Cost (Purchase Price + Improvements Dollar-for-Dollar)
- 30-year fixed term
- No Debt-to-Income Ratio Analysis Required
- No Debt-Service-Coverage Ratio Analysis Required
- Rates starting in the high 4% range
Commercial or Multifamily Properties:
- Up to 75% Loan-to-Value
- 30-year fixed terms
- No Debt-to-Income Ratio Analysis Required
- No Debt-Service-Coverage Ratio Analysis Required for loan amounts <$500K
- Rates starting in the high 5% range
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