Test Your Real Estate Investor Loan Program Knowledge

Loan Program Requirements for Real Estate Investors

• Loan programs include 30-year fixed rate, 10-year interest-only, 30-year fully amortized, and various adjustable-rate mortgages.
• The loan is available in all states except AK, HI, ND, SD, UT, VT, NV.
• Eligible borrowers include limited liability companies, corporations, limited liability partnerships, individuals, foreign nationals, and revocable trusts.
• Ineligible borrowers include irrevocable trusts, land trusts, borrowers with diplomatic immunity, not-for-profit entities, and those listed on exclusionary lists.
• The minimum loan size is $100,000, and the maximum loan size is $2,000,000.
• The debt service coverage ratio (DSCR) must be greater than or equal to 1.0.
• Maximum loan-to-value (LTV) and combined loan-to-value (CLTV) ratios depend on credit score and type of transaction (purchase, refinance, or cash-out).
• Gross rents are used in the DSCR calculation, and fully executed lease agreements are required.
• Ground leases, cash for deeds, and sale-leaseback options are not permitted.
• The borrower must have a history of owning and managing commercial or non-owner occupied residential real estate for at least 1 year in the last 3 years to be considered an experienced investor.
• First-time investors are eligible with certain restrictions, including a maximum LTV of 75% and no mortgage late payments during the past 36 months.
• The borrower and their immediate family members are not allowed to occupy the property, and borrower-affiliated tenants must be non-borrower affiliated.