DSCR LONG TERM RENTAL LOANS

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LOW DOCUMENTATION LOANS

NO TAX RETURNS OR EMPLOYMENT VERIFICATION NEEDED

FOREIGN NATIONALS Eligible

We’ll Create Loans For Your Needs

  • Minimum FICO score 660 (median of all scores)

  • No foreclosure/bankruptcy within past 48 mo.

  • Minimum DSCR = 1.10x PITIA

    • Options available for loans with DSCR as low as 1.00x PITIA

  • Purchase & Rate/Term Refinance max LTV: 80%

  • Cash Out Refinance max LTV: 75%

  • Short-term VacatioN rentals MAX LTV: 65%

  • Standard Prepayment Penalty is 3 years

    • (Option to buy down to 1 or 2 year)

  • Required Borrower Reserves: 6-12 months of PITIA

  • Standard property, title, general liability, and 6 month rent loss insurance required

  • Close in 30-45 Business Days

1-4 Units (includes townhomes, PUDs, and condos)

5-8 Multi-Family Units

2-8 Mixed Use (60% of rental income must be from residential, 50% of square footage)

Non-warrantable condos on a case-by-case basis

Property Type

Eligible Borrowers

U.S. Citizens and Foreign Nationals

Permanent Resident Alien

U.S. Domiciled Entities

Loan Amount

Minimum: $75,000 (per property)

Maximum: $3,000,000

As Is Value: Minimum $100,000 per property

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Expand Your Rental Portfolio

Conventus provides business purpose loans for the purchase, renovation and rental of non-owner occupied single and multifamily residential real estate. Our mission is to understand your unique story in order to provide personalized service and transparent financing at highly competitive rates.

 

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Low document process

No tax returns, borrower income, or employment verification needed. Main qualification is on DSCR of the property.

Flexible Terms

We offer multiple loan products to fit your needs: 30-year fixed, 10/6 ARM, 7/6 ARM, and 5/6 ARM (IO Available)

         Frequently Asked Questions

How do you calculate DSCR (Debt Service Coverage Ratio)?

  • DSCR will be measured as:

  1. Stabilized/Pro Forma NOI (Net Operating Income; divided by

  2. Debt service based upon projected refinance terms. 

  • NOI is broadly calculated as follows:  

  1. Rents: The lesser of Appraiser-provided or CV-estimated stabilized/Pro Forma market rents to determine Gross Potential Rent.  

  2. Plus: Ancillary Income: additional income from various non-rent sources, such as but not limited to parking, storage, and laundry fees.

  3. Minus: Operating Expenses: The greater of Appraiser-provided or CV-estimated expenses.

What does my monthly payment consist of? 

  • Principal, interest, taxes, and insurance. 

How many properties can I have per loan?

  • You can have up to 15 properties per loan. However, loan pools with 9 properties or less do not require a newly formed special purpose entity to be formed.

Do you finance 5+ unit properties?

  • Yes, we do but on an exception basis. 

Do you require a deposit?

  • Yes, we require a valuation deposit. If the valuation is less than our estimation, the remaining balance will be applied to other closing costs on the settlement statement. 

What are your seasoning requirements?

  • If a property was purchased within the last 12 months, we will be limited to the lesser of X% of value or 100% of cost. 

Is there an option to buy down the rate?

  • Yes. For example, you can pay 1.5% (instead of the 1% origination fee) to buy down the rate by 0.25% or 2% to buy down the rate by 0.5%.

Are there release clauses?

  • The release % is 120% of the property’s allocated loan amount plus any applicable prepayment penalty fees.

  • If no allocated loan amount or release amount is defined, then any sale or transfer of any one property shall require full payment of the entire loan amount unless a different arrangement is mutually negotiated between the Borrower and Lender. 

How many points do you charge?

  • 0 to 2 points

What is your estimated closing time frame?

  • We can close in 30 - 45 business days. 

Is the loan recourse or non-recourse?

  • Recourse 

Can you explain the prepay penalties?

  • It is a step down pre-pay; 3-2-1 or 5-4-3-2-1 , we can also offer a discount for the minimum interest period. 

What reserves are required for the loan?

  • The following are the required reserves:

    • 6 months PITIA (Principal, Interest, Taxes, Insurance, and Association Dues)

    • Additional reserves required for multi-property loans or additional properties in the guarantor’s credit report not to exceed 12 months PITIA

    •  Cash out refinance proceeds can be used to satisfy reserves. 

Can I get a loan if I have a short term rental?

  • Short-term rentals (via online service) conditionally allowed – 65% max LTV for LTR loans. 

What is your minimum loan amount?

  • $75,000

Can I get a discount if I get a bridge loan first?

  • Yes, we will waive the processing fee and the origination points.

For my purchase loan , do you require my money to be seasoned and will you source my funds?

  • We do not require seasoning, but we will verify the source of the funds.

Can I close under my personal name?

  • Yes, but depends on the state. 

How will I have a signed lease on the vacant property before I'm the owner?

  • If the property is vacant at close and there is not an executed lease, the LTV would be lowered by 5% and we will hold back 3 months of the loan’s monthly payment and apply it to your first 3 months of loan payments.

Is there a requirement to have an escrow account  for insurance and property tax?

  • Yes, this is a requirement.

Can the 1 point charge add to the loan amount?

  • The 1.00% origination fee and all other closing costs will be on the settlement statement and come out of loan proceeds. 

Where does the lender legal fee come from? 

  • Our legal fee is quoted based on the property count and loan size.

What's the minimum credit score?

  • The minimum credit score is 660.

What are your fees?

  • There is a lender legal fee (attorney closing states only), appraisal fee, processing fee and origination fee.