Rental Loan are a financing option for investors looking for a long-term solution, at an attractive rate. Underwriting is heavily weighted on the DSCR (Debt-Service Coverage Ratio) and not the individuals DTI (Debt to Income).
Standard Loan Terms
- Max Loan Amount: $2,000,000
- Max LTV (Loan to Value): 75%
- Rate: Starting at 7.5%
- Payments: Monthly Principal and Interest payments.
- Term of loan: 30 Year and ARM (5/1 and 7/1)
Standard Closing Costs
- Origination Fee: 2%
- Underwriting Fee: $1,500
- Legal: $750 – $1,500
- Appraisal Fee: $500-$950
- Title Insurance and recording fees: 1%(Approximate)
- Single-family residences.
- Two to four units. From 5 to 8 units case by case, only with board approval.
- Credit Application (1003)
- Last 2 bank statements (US bank account)
- Copy of ID and Borrowing Entity docs (Can close under personal name or
- Purchase Contract (If Purchase)
- Property Insurance
- Lease Agreement (if applicable)
- Short term rentals allowed
Standard Closing Time
- The usual time to close is 20-30 days.
RBI Private Lending is a direct lender and does not rely on other institutions to close the loans. Once the title work and appraisal are ready, We will be too!
- Minimum DSCR (Rental Income / Debt Service): 0.80
- Minimum Credit Score: 660
- Rental in place: Not Required
- Foreign Nationals Qualified with reduced LTV (65%)
Do you make personal loans?
We do not make personal loans, only for real estate investment.
What kind of real estate loans do you make?
RBI finances real estate investments, both the purchase of properties for rent or second residence, as well as renovations for subsequent resale. We also finance the real estate development
What is the interest rate and loan term?
Usually, loan rates are 9% and 1.75% points. Loan terms are 12-36 months
What is the loan type?
Most our loans are interest only, which means a fixed interest is paid throughout the term and full balance at maturity. For example, a $100,000 with 12 months term and 9% rate will yield 12 monthly payments of $750 and a final payment of $100,000
What happens if I sell the property or prepay the loan before maturity?
In most of our loans there is no prepayment penalty.