Overview of Baselane’s Loan Program
Baselane offers a range of loan products tailored to real estate investors, including conventional, DSCR, fix-and-flip, BRRRR, and new construction loans. Our hand-picked correspondent lenders ensure we can offer competitive rates and flexible terms in 48 states designed to meet your unique investment needs.
Program Highlights
- Available in 48 States: We cover nearly every state except North and South Dakota.
- Competitive Rates: We provide access to some of the best rates available.
- Excellent Service: Hassle-free process with quick approvals.
Loan Types and Details
All Loan Types
- Conventional & DSCR Loans: Long-term and short-term rentals.
- Fix-and-Flip & Rehab Loans: Finance property renovations.
- BRRRR Loans: Buy, Rehab, Rent, Refinance, Repeat.
- Airbnb & STR Loans: Finance based on short-term rental income or mid-term rental income (underwritten based on Airdna data, no W2 required)
- New Construction Loans: Financing for ground-up construction.
Fannie Mae 5% Down Multifamily Loans
Baselane offers conventional loans, such as Fannie Mae’s 5% down multifamily loan for purchasing or refinancing 2-4 unit properties. Requirements include:
- Minimum credit score: 620 or higher
- Owner-occupancy: One unit must be occupied by the borrower
- Proof of income: Demonstrating stability and acceptable debt-to-income ratio
- Standard underwriting: Includes property appraisal and verification
Conventional Loans for Rental Properties
- Loan Amounts: $100K - $3M
- Loan Terms: 10 to 30 years
- LTV: Up to 80%
- LTV is 80 a 1-unit
- LTV is 75% for a 2-4 unit or for a cash or refinance
- W2 Income and Minimum Credit of 660 required
- Highlight: Secure your next rental property with just 5% down.
DSCR Loans
- Loan Amounts: $75K - $5M
- Terms: 5, 7, or 10-year ARMs, or 30-year fixed
- LTV: Up to 80%
- Interest-Only Options: Available
- Highlight: Qualify based on rental income (actual or projected), with fast approvals in 10-15 days.
Short-term Rental or Airbnb Loans
Baselane has selected one of the top experts in STR financing: 95% of our correspondent lenders deals are for Short Term Rental Investment Properties. Working with us ensures you know you’re working with a lender that gets it and can get the deal done. We’ve seen and done it all.
- Our lending partners forward-thinking approach to underwriting allows investors to qualify for a 30 year mortgage using the property’s STR income instead of their own.
- With no tax returns or personal income verification needed, this lite-document approach allows for quick closes and hassle-free underwriting to ensure the financing portion of the purchase process is the one you won’t have to worry about.
- Qualify with actual or projected STR Income
- 30 Year Amortizations
- No DTI, Tax Returns, or W2s Needed
- A DSCR ratio of over 1 means the property generates enough income to cover its debt obligations.
- Our lending partners can finance deals with DSCRs .75 or below. 75 to .99, 1.00+, 1.25+ and above. In the rate calculation DSCR ratio plays a factor so for the best rates not withstanding of other qualifying factors (FICO, loan size, property type, LTV, etc), a DSCR ratio of 1.25 above would be considered a top tier bracket for rates.
Portfolio Rental Loans
- Loan Amounts: $500K - $100M+
- Terms: 3 - 10 years
- LTV: Up to 75%
- Amortization: Interest-only or 30-year fully amortizing
- Use Cases: Single-family, multi-family, and small mixed-use properties.
Fix-and-Flip Loans
- Loan Amounts: ($1M - 50M) (Up to 85% of project cost)
- Fund up to 90% of Purchase price, 100% of renovation costs
- Loan Terms: 12, 18, or 24 months
- Loan-to-Completed Value: 70% - 75%
- Origination Fees: 1% to 3%
New Construction Loans
- Loan Amounts: Up to 85% of project cost
- Loan Terms: 12, 18, or 24 months
- Loan-to-Completed Value: 70% - 75%
Frequently Asked Questions (FAQs)
1. What is a Conventional Rental Property Loan?
A conventional rental property loan is for purchasing or refinancing residential rental properties. Investors can typically secure up to 10 loans in their name. These loans feature competitive interest rates and various term options.
2. What is a Hard Money Loan?
A hard money loan is a short-term, high-interest loan secured by the property’s value, often used for fix-and-flip projects. These loans have flexible terms and can close quickly, with terms ranging from 3 months to 5 years.
3. What is an Asset-Backed Rental Property Loan (DSCR Loan)?
A DSCR loan focuses on the property’s cash flow, qualifying borrowers based on the income potential of the property rather than personal income. This loan type offers faster approvals and more flexibility, especially for short-term rentals.
4. How is DSCR Calculated?
DSCR is calculated by dividing the property’s gross annual income by its annual mortgage debt service (including principal, interest, property taxes, insurance, and HOA fees). A DSCR ratio over 1 means the property generates enough income to cover its debt obligations. Our lending partner can finance properties with DSCR ratios as low as 0.75. The higher the DSCR (e.g., 1.25+), the better the rates you can qualify for.
5. What Are the Benefits of a DSCR Loan?
DSCR loans allow investors to qualify based on the property’s income, reducing reliance on personal income for approval. This can speed up the process and allows investors to hold properties in an LLC, tying the debt to an EIN number rather than a Social Security number, which can protect personal credit.
6. How Does Refinancing Work with DSCR Loans?
Refinancing a DSCR loan focuses on the property’s income and ability to service the new loan. If a property has 12+ months of income history, it can be used for underwriting. If the property is newly renovated or delayed for purchase, projected rental income (either short-term or long-term) can be used to qualify.
7. Can a Borrower Have Multiple DSCR Loans?
Yes, investors can secure multiple DSCR loans to build a portfolio of rental properties. Each loan will be individually assessed based on the respective property’s income potential.
8. How Do I Get the Best Rental Property Loan Terms?
To get the best terms, focus on improving your credit score, providing a sizeable down payment, maintaining a low debt-to-income ratio, and demonstrating real estate investment experience. Working with the right lender can also make a significant difference.
9. What is the Minimum FICO Score Requirement?
The minimum median credit score for rental loans is 660, and for rehab loans, it’s 680.
10. What Documents Are Required to Get Started?
Start by completing Baselane’s online questionnaire. After that, our correspondent lenders will reach out to provide the necessary documentation based on your specific loan type.
11. What Are the Terms of the Portfolio Loan?
Portfolio loans are structured as commercial loans with residential properties as collateral, covering single-family homes, 2-4 units, small multi-family, and mixed-use properties. Loans are underwritten based on cash flows, with a minimum DSCR of 1.20x.
12. In which states do you lend?
Conventional loans (Fannie Mae & Freddie Mac): For conventional rental loans, we offer loans in the following states: CA, CO, CT, DE, DC, FL, GA, ID, IL, KY, ME, MI, MN, MS, MT, NJ, OH, OK, PA, TN, TX, WA, WV, and WY, as well as Washington D.C. Prepayment penalties as allowable by state.
Non-conventional loans: We offer non-conventional loans in the following 48 states: AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, TN, TX, UT, VT, VA, WA, WV, WI, and WY.
13. What interest rates do you offer?
Rates vary based on loan type, location, and borrower profile. Complete our online questionnaire to get personalized rates.
14. What documents are required to get started?
Start by completing our online questionnaire. Afterward, you'll be contacted by a correspondent lender who will guide you through the process and provide the required documents based on your specific loan type.
For more information or to apply for a loan, visit https://www.baselane.com/rental-property-loans/
To see if you qualify take this short survey https://www.baselane.com/quiz/
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