Are there cash out options when a loan closes?

Yes, if the DSCR loan is used to refinance an existing loan, including a construction loan, the borrower can take cash out.  There are no cash out options on purchases.

Is there an interest only (i/o) term available?

Yes, for qualified borrowers, there is a 10 year i/o option after which the loan transitions to a 20 year fixed product.

Are there pre-payment penalties?

No, there are not.  However, if the loan has an agreed upon pre-payment term, expect the cost of capital (interest rate) to be lower.

How quickly can you close a loan?

We can move fast; as long as the borrower has documentation in order and the appraisal moves quickly, we can expedite closing in less than 20 days.

Do you provide construction loans?

Yes, we do construction and construction to permanent financing.  For this loan, all underwriting is done upfront, and the borrower will receive one term sheet for the construction and permanent financing.    

Can you fund more than 1 DSCR loan at a time?

Yes, we can issue multiple loans to one borrower.  The only requirement, for assets larger than four (4) units, is each unit must have its own property tax number and property tax bill.  If that is the case, a borrower can complete multiple DSCR loans.

Do your loans carry recourse?

No, all loans provided are non-recourse with standard bad boy carveouts.  There are exceptions for construction loans depending on the asset and strength of the borrower, but the permanent product (DSCR loan) is non-recourse.

Are you a broker?

No, we are not brokers.  This is not a white label or correspondent relationship.  We are the lender, it’s our money.  Borrowers speak directly with loan committee members that approve and fund loans.