Find answers to the most commonly asked questions about our investment property loan programs, application process, and borrower requirements. Rental Home Financing specializes in blanket mortgages and portfolio loans for residential rental investors across all 48 contiguous states.
Can't find what you're looking for? Our lending specialists are ready to help with your specific scenario.
Loan Programs & Benefits
What are the advantages of Rental Home Financing's loans?
We write one blanket mortgage loan against your portfolio of residential assets. Properties can be located in many different cities or states, ranging from 5 to 500 properties.
- No personal income/debt ratios are used
- Consolidate monthly payments to 1 single mortgage lender
- Rental portfolios located across the United States
- 30 year amortization available
- Non-recourse options
- 5 & 10 year fixed rates
What are the benefits versus a traditional residential home loan?
Rental Home Financing's loan products are specifically tailored for rental property investors. We understand the limitations Fannie Mae, Freddie Mac, and local banks have on this type of property. Everyone on our team is dedicated to serving this underserved segment of the market.
- No personal income review — we use a commercial real estate underwriting approach focused on collateral and cash flow. Personal debt and income ratios are NOT reviewed.
- LLC protection — all properties must be located in a single newly formed LLC, limiting your personal exposure and liability.
- No property limits — Fannie Mae caps at 10, Freddie Mac at 4. We have no limit and pricing improves as numbers increase.
- Non-recourse available — starting at $500,000 for most loan products.
- Assumable — all loans are assumable to a qualified borrower. Traditional loans have due-on-sale requirements.
- Unlimited cash out — no limit on cash-out amount when refinancing your residential portfolio.
Is there a limit to the amount of money I can borrow?
No. Your loan proceeds are determined early in our evaluation process by our skilled underwriting team after a thorough analysis of both the portfolio and cash flow of the assets used for collateral.
75%
Max LTV
1.2x
DSCR
$50M+
Max Loan Size
- 30 year amortization
- 5 and 10 year fixed rate terms
- 5 year floating rate term available
What types of portfolio lending programs are available?
Residential portfolio financing is available for purchase, refinance, partner buyouts, and cash out.
- Up to 75% LTV • 1.2x DSCR • $500K – $50M+
- 30 year amortization • 5 & 10 year fixed terms • 5 year floating
- Foreign national lending program
- Non-recourse options • Assumable
Contact one of our qualified lending specialists for more details — 1-888-375-7977
Who is Rental Home Financing?
- Rental Home Financing, a subsidiary of Direct Money Lenders Inc., is an institutionally backed real estate private equity firm headquartered in Indianapolis, IN.
- We focus on placing various debt investment instruments secured by residential portfolios throughout the United States.
- Rental Home Financing has over $4.0 billion available for deployment in the residential rental property sector.
Property Types
What property types are considered?
Rental Home Financing lends on a wide range of residential rental property types including:
What property types are NOT considered?
No one lender can do it all, but we are trying! At this time, Rental Home Financing does not currently finance the following:
What states are eligible for lending?
Rental Home Financing makes loans in all contiguous 48 states of the USA. We also lend to foreign national borrowers who live in the USA or outside of the country.
Can I finance properties that are not currently leased?
Yes. Rental Home Financing requires that financed portfolios be at least 90% leased at closing. Properties that are not leased must be in or very close to lease-ready condition.
Is there a minimum lease period?
Tenants should have at least 6 months with a lease. Month-to-month is acceptable after the initial 6-month period has expired.
Would you lend on vacant lots with a house in the mix?
Not at this time. All properties need to be income-producing building structures. No vacant land is considered.
What is the down payment for multifamily (5+ units)?
We require a 25% cash down payment on multifamily properties with 5 or more units.
Borrower Requirements
Who can qualify as a borrower?
All properties in the portfolio must be owned and operated by a newly formed corporate entity such as a corporation or LLC. Our attorneys streamline closing documents and corporate entities from Delaware as an approved state of organizational documentation.
No loans are made to individual consumers or borrowers.
How do you underwrite the borrower?
We use the income from the property to underwrite — no personal income is used to qualify. Borrowers can show a loss on taxes. We like to see at least a 680 FICO score but can be flexible.
Foreign nationals are welcome — up to 60% LTV/LTC, whichever is less.
Are there minimum seasoning requirements on ownership?
No. There are no minimum seasoning requirements the applicant must meet before applying for a loan with Rental Home Financing.
Property Management
Can I manage my own properties?
Yes. We have had several successful self-managed closings where property owners and investors have the experience and understanding to self-manage their own portfolio.
If you prefer to engage a professional property management company, you may do so without issue, provided the property manager has at least 2 years of property management experience.
Can I hire a professional property manager?
Absolutely. Approval of the property manager is generally based on experience and background. We like to see at least 2 years of property management experience managing at least the number of homes under consideration for financing.
We also allow for self-managing property owners.
Reserves & Costs
Are any reserves required to set up and maintain the loan?
Yes. Monthly reserves will be mandated for taxes and insurance. PITI (Principal, Interest, Taxes, Insurance) is a typical escrow account found in many traditional residential mortgages. The determined reserves will be used to pay tax and insurance bills as they become due, paid directly by the servicer.
In addition, Capital Expenditure (CAPX) reserves will be collected on a monthly basis to pay for deferred maintenance and repairs (roof, appliances, HVAC, etc.). The sponsor or property manager is allowed to draw from this reserve account as necessary to fund actual expenses.
Why do I have to escrow money for repairs (CAPex fund)?
The Capital Expense (CAPEX) fund is standard for commercial and multifamily loans. The fund protects the lender and the collateral against deterioration. Typical annual expenses range from $450 to $1,500 per door per year.
Loan Terms & Details
Is the loan assumable?
Yes. Our loans are assumable for 1%. We require a special purpose LLC to be formed — the corporation and the mortgage can be sold to a qualified sponsor, allowing you to exit without a penalty.
Do you allow partial release clauses?
This loan is not geared for partial releases. We focus on the buy-and-hold investor. However, we do allow up to a one-time 20% exchange or sale of collateral.
Do you allow seller-held financing?
We do not allow for seller-held financing or second mortgages at this time.
Are these blanket loans kept on your balance sheet or sold?
These loans are kept on balance sheet with ultimate exit into the secondary market.
What are the prepayment penalties and closing costs?
Prepayment Penalties
- 5Y 4.5 years of Yield Maintenance (guaranteed interest)
- 10Y 2 year lockout, then declining 8%-7%-6%-5%-4%-3%-2%-1%
Origination & Closing Costs
- Origination: 1–2% (depends on loan size, leverage, cash flow) — paid from loan proceeds
- Appraisals: $350–$375/door for SFR; $550–$575 for 2–4 units
- Per-door fees: $165/door for title review, deed verification, tax review, lease review, flood cert, seismic cert, and insurance review
- Other: $375 background check • $1,000–$2,000 underwriting fee
How do I list 2–4 units and multifamily on the spreadsheet?
Break down 2–4 unit properties into individual units on our spreadsheet so we can determine monthly rents. For example, 10931 Bay Ave Unit 1 would be a separate line, Unit 2 a separate line, and so on.
For apartment buildings (e.g., an 8-unit), list each unit on a separate line as you would with 2–4 unit properties. Items such as taxes, insurance, value, and purchase date can remain on the first line item of the property.
Ready to Get Started?
Have a specific scenario or question not answered here? Our lending specialists are available to discuss your investment property financing needs. A phone conversation is often the best way to address your specific questions and requirements.