What are the benefits of rental property financing through Asset Based Lending?
There are multiple benefits to using ABL for your rental property loans.
- There is no 1 size fits all approach here. We have a variety of rental loan programs available, and will choose the option that best fits your needs. This includes a no income verification rental loan, a max LTV program, a lowest rate program, etc.
- If you are purchasing a new property that you hope you keep for rental income, ABL will help you quickly secure the purchasing and renovation funds. A typical term loan could take several months to close, but ABL will close the hard money fix and flip loan in just a matter of days.
- There are no seasoning requirements, so we can begin the process as soon as the property is in rentable condition and provide a cash out refinance loan at market value immediately.
Are these hard money rental loans?
The long-term financing for your rental property is not a hard money loan. For projects with a purchase and rehab component, the initial loan will be a hard money fix and flip loan with a cash out refinance exit strategy.
What are the typical terms of a rental loan takeout?
While all loans are different and structured to meet the individual investor’s needs, the typical rental loan is a 30 year fully amortizing loan with rates between 5%–8%. LTVs typically range from 60%–80%, with an average DSCR requirement of 1:1 (although lower DSCR programs are available).
Does the property need to be rented to qualify for rental property financing?
No, the property does not necessarily have to be rented in order to qualify for loans on a rental property. For 1-4 family homes, condos, and townhouses, the loan may be able to use market rents.