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Rental Loans
Purchase
Refinance
LTV
Up to 80%
Up to 75%
Experience
Not Required
Required
Minimum DSCR
0.75x
1x
Rates
From 6.5%
No points programs
Available
Property Type
1-8 Family, Condo, Townhouse
Minimum FICO
640
Min Loan Amount
$150,000
Max Loan Amount
Project Specific
Accolend’s DSCR loans are the perfect option for investors looking to finance their rental properties. Whether you are looking to purchase a new investment, or are looking to refinance an existing hard money loan - our flexible term lengths and low rates allow investors to get financing tailored to their needs
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Loan process steps
1
Apply for loan
You provide us with the application, including property and deal information.
2
Receive our Terms
We send you the proposed terms of our loan, outlined in a term sheet that includes all relevant expenses and documentation requirements.
3
Loan Underwriting
Our underwriting team sets up your loan on our website portal to ensure a smooth documentation submission process. We coordinate with vendors such as appraisal and inspection companies, title, insurance, and legal counsel to facilitate seamless communication. Please click here for an explanatory video.
4
Loan Closing
We work with you, your legal counsel, and the title company to schedule a closing date. On the closing date, we review all executed documents from your lawyer or the title company/closing agent and wire the funds.
5
Draw Management
You reach out to our draw manager with your draw request. A property inspection will be scheduled to verify completed work, and upon satisfactory completion and review, we will fund the draw. Please click here for an explanatory video./closing agent and wire the funds.
6
Payoff
Our servicing team will assist you with extension and/or payoff requests. Extension approval requires 30 days of advance notice and the completion of an extension application/closing agent and wire the funds.
Why Accolend
Competative Rates
Fast Service
Certainty of Execution
No Points
Frequently Asked Questions
What is the closing time for Rental Loans?
The closing time for Rental Loan is 2-3 weeks. We are a direct lender, so there is no difference between the closing time for of all our loans.
Do you require income or assets verification?
We offer asset-based loans, so we don't ask for or verify your income or assets.
What if rental income exceeds the average market rent?
We will first order an appraisal to obtain market rent. We will then compare the average market rent with your rental income and use the lower value for DSCR calculations.
Which FICO score will you use if there are multiple borrowers?
If there are multiple borrowers with similar FICO scores, we will use the highest FICO score.
Do you require full appraisal?
Yes, a full appraisal will be required, including the interior.
What are your closing fees?
There are fees associated with legal documentation; background and criminal reports; as well as servicing setup and wire fees. These fees usually are between $1,750 to $2,200.
Personal guarantees?
Are required.
Do you lend to LLCs?
Yes, we lend to LLCs.
Do you work with brokers?
Yes we do, we have a lot of broker-friendly programs.
Do you have Prepayment Penalties?
You can chose no prepay penalties or 1-5 years Prepay Penalty term.
What are seasoning requirements for Refinance?
6 months seasoning is required to use Market value. Prior to 6 months we can refinance based purchase price.
Do you require lease agreements for all units?
Rental agreements are required for all units with more than four months remaining on the lease.
What documents do you require for Rental Loans?
- Personal information: two months of bank statements, Proof of experience (if applicable), Driver's License or other government ID, and SSN
- Property Information: Purchase agreement or HUD, Insurance, Title, Lease Agreements and Insurance
- LLCs Documents: Certificate of Formation, EIN, Operating Agreement, and LLC resolution
Is it acceptable to have month-to-month leases?
Rental loans require longer-term rental leases to be in place. Rental loans can be for periods shorter than a year; however, month-to-month rent is not factored into DSCR calculations.
How many months of reserves do you require?
We require six months of PITI (principal, interest, taxes, and insurance) reserves.
Do you require Bank Statements?
Yes, we require two months of bank statements to verify if borrowers have enough to cover the principal, interest, taxes, and insurance. Bank statements are to be either in the borrower’s name or the LLC we are lending to. Otherwise, proof of ownership will be required.
What other reserve sources are allowed?
Life insurance or annuity at 100%, liquid stocks or bonds at 100%, 401k/IRA at 50%, Cashout at 50% (some restrictions may apply).
Property Management Fee?
If the borrower lives more than 100 miles away from the property, general market management fees will be applied for calculations of Debt yield and DSCR./IRA at 50%, Cashout at 50% (some restrictions may apply).
What is your acreage limit?
The maximum acreage is 2 acres per property.
What are Prepay Penalties terms?
For 5yrs - 5/4/3/2/1%; for 4yrs - 4/3/3/1%, for 3yrs - 3/3/3%; for 2yrs - 3/3%; for 1yr - 3%
Do you require all units to be occupied?
SFR and 2 Units Properties have to be occupied. 3 and 4 units can have 1 unit vacant and 5-8 units can have 2 units vacant.
201-643-6650 x 1
sales@accolend.com
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