Lenders for SFH rentals
Hello, I'm looking for a lender that does 30 year on rentals. I have reached out to a couple with no response. Does anyone have a recommendation for a company they have worked with for rentals?
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What you're looking for is a DSCR loan - which is a business purpose (commercial) loan for LTRs and STRs.
Lenders vary widely on leverage and rate, and often times do not offer rate locks, the final rate will the be determined 48ish hours before closing. They of course will give you an idea.
Competitive loans in this space will be up to 80% LTV for Purchase/Rate and Term Refinance and up to 75% for cash out refinance.
These types of loans typically require a full appraisal, but are still "light doc" and come down to how well the property will cashflow after paying debt service, taxes, insurance, and operating expenses.
Your FICO score will ultimately determine leverage and rate, with 750+ FICOs getting the best terms.
You *should* see rates anywhere from 6.75% to 8.5% depending on transaction type, with 1-2 pts up front.
Hope that helped.