FAQ
Questions investors
actually ask
Straight answers on DSCR, fix & flip, bridge and construction financing. No bull.
Investor loans
Getting started
What credit score do I need for an investment property loan?
Most investment property loans require a minimum 660 credit score, though some programs may go lower with compensating factors like larger down payments or lower LTV. Higher scores (700+) typically qualify for better rates.
How long does it take to close on an investment loan?
DSCR loans typically close in 21-30 days. Fix & Flip and Bridge loans can close faster, often in 7-14 days with proper documentation. Construction loans may take 30-45 days due to additional requirements.
Can I get a loan for a property that needs renovations?
Yes! Fix & Flip loans are designed exactly for this purpose, providing both acquisition and rehab funding. For long-term holds, some DSCR programs allow delayed financing after you complete renovations.
Do I need to form an LLC to get an investment loan?
No, you can close in your personal name. However, many investors prefer to use LLCs for liability protection. Our loans work with both individual borrowers and business entities.
What is DSCR and why does it matter?
DSCR (Debt Service Coverage Ratio) measures whether a property's rental income covers its debt obligations. A DSCR of 1.0 means income equals expenses. Most lenders require 1.0-1.25, but we offer programs as low as 0.75 DSCR.
Can foreign nationals get investment property loans?
Yes, we offer DSCR loans to foreign national investors. Requirements include a valid passport, US bank account, and typically 25-30% down payment. ITIN holders may also qualify.
DSCR loans
DSCR rental loans
What is DSCR and how is it calculated?
DSCR (Debt Service Coverage Ratio) measures whether a property's rental income covers its debt obligations. It's calculated by dividing the property's gross rental income by the total debt service (principal, interest, taxes, insurance, HOA). A DSCR of 1.0 means income equals expenses; above 1.0 means positive cash flow.
Can I use projected rents for a new purchase?
Yes, we can use market rent analysis (typically from an appraisal's rent schedule) for properties not yet rented. This is common for new acquisitions where you plan to place tenants after closing.
Are short-term rentals (Airbnb/VRBO) eligible?
Yes, we offer DSCR loans for short-term rentals. We'll use documented rental history or projections from AirDNA or similar platforms to calculate income potential.
Do I need to provide tax returns or W-2s?
No personal income documentation is required. Qualification is based on the property's rental income, your credit score, and asset verification.
Fix & flip
Fix & flip loans
How do rehab draws work?
Rehab funds are held in escrow and released in draws as you complete work. Typically, you'll submit a draw request, we'll send an inspector to verify completed work, and funds are released within 2-3 business days. Most projects have 3-5 draws depending on scope.
Do I need fix-and-flip experience to qualify?
While experience is preferred and can result in better terms, we work with newer investors who have a solid deal and realistic scope of work. First-time flippers may have slightly lower leverage or require additional reserves.
What happens if my project takes longer than expected?
Extensions are available for most loans. We understand that renovation timelines can shift due to permits, weather, or contractor availability. Contact us before your term expires to discuss extension options.
Can I refinance into a rental loan instead of selling?
Yes, this is a common exit strategy called BRRRR (Buy, Rehab, Rent, Refinance, Repeat). Once renovations are complete and the property is rented, you can refinance into a DSCR loan for long-term hold.
Bridge
Bridge loans
What is a bridge loan used for?
A bridge loan is short-term financing that lets an investor buy or hold a property until a longer-term solution is ready, such as a sale or a refinance. Investors commonly use one to close quickly on a time-sensitive deal, to buy before selling another property, or to carry a transitional property until it qualifies for long-term financing.
How fast can a bridge loan close?
Bridge loans can often close in 7-14 days with proper documentation. Because underwriting focuses on the property and your exit strategy, the timeline is usually much shorter than a long-term loan. Having your property details, entity documents and exit plan ready up front keeps the process moving.
What exit strategies work with a bridge loan?
The two most common exits are selling the property or refinancing into long-term financing, such as a DSCR loan once the property is leased and stabilized. Whichever you choose, plan it before you close and build in a time cushion, since leasing, sales and renovations can take longer than expected.
What is the difference between a bridge loan and a fix and flip loan?
A fix and flip loan includes rehab funds released in draws as renovation work is completed, while a bridge loan is used to buy or hold a property with little or no renovation. Both are short-term business-purpose loans. If your project needs a full renovation, a fix and flip loan with a structured draw schedule is usually the better fit.
Construction
Construction loans
How do construction loan draws work?
Construction funds are released in draws as each phase of the build is completed, rather than all at once at closing. Typically you submit a draw request, the completed work is verified, and funds for that phase are released. The draw schedule is set up before closing so it matches your build plan.
Can a construction loan cover both the lot and the build?
Yes, construction financing can be structured for lot and vertical construction, depending on the scenario. Share whether you already own the lot or are purchasing it, along with your plans and budget, and we will structure the request accordingly.
Do you finance spec builds or only custom homes?
Both spec and custom builds can be financed. The program is designed to be investor and builder friendly, whether you are building to sell on the open market or building to a buyer's specifications. Every project is reviewed on its plans, budget and the builder and borrower experience.
How long does it take to close a construction loan?
Construction loans may take 30-45 days to close due to additional requirements. Plans, budgets, permits and builder information all need to be reviewed, so gathering those documents early is the best way to keep your project on schedule.
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