Next-Financing Fix & Rent Loan
Let us help you grow your rental portfolio
Our Rental Loan product provides our customers a reliable source of financing through a simple and efficient online loan process. Our 30-year fixed-rate rental loan product was designed to help savvy investors capitalize on the rapidly growing rental market. With attractive rates and up to 80% loan-to-value (LTV) on fixed-rate loans, these loans are a great way to get cash out from your existing rental properties. Our Rental Loans begin at $75K and up to $2 million with no personal income verification.
Get Cash From Your Existing Rental Portfolio
Next-Financing’s Asset-Based Loans can provide the cash you need to grow your rental portfolio.
- Get cash from rental properties – loans from $75K to $2 million.
- Lower your blended rate – consolidate higher-rate loans into single mortgage.
- No personal income verification – lending decision based on property cash flow.
- No hurdles – flexible loan options designed for your buy and hold strategy.
Advantages of Next-Financing Rental Loans
- Cash out refinances
- No personal income verification – no W-2 required
- Minimum seasoning requirements*
- 620 min. FICO
- No hurdles- a very user-friendly and streamlined process
- Foreign Nationals Permitted
- No DSCR Restrictions* (Debt Service Coverage Ratio)
- Prepayment penalty**
Rental Loan Overview
Purpose: Refinancing and Acquisition
Proceeds/Loan Amount: Starting at $75K to $2 Million
Rate Type: 30 Year Fixed and Interest-Only Option
Available ARM Terms: 3, 5 and 7 Years
LTV: Up to 80%
Amortization: 30 Years
Recourse: Recourse Options
Minimum Property Value: $60K to $2 Million
Property Types: Single-family detached, 2-4 unit residences, townhouse, 10 acres maximum, warrantable condos (non-warrantable condos not allowed).
Rental Loan FAQ’s
Q: What type of Rental Loan Rates are offered by Next-Financing?
A: Next-Financing offers both fixed a 30-year rate starting at 6.35% and hybrid adjustable rate mortgage, 3/1, 5/1 and 7/1, starting at 5.75%. All rates are based on individual property and borrower. Call us too learn more. 800-605-1821
Q: What type of properties are eligible for Rental Loans offered by Next-Financing?
A: The following property types are eligible for our Rental Loans:
- Single Family Residence (SFR)
- 2-4 Unit Properties (LTV cannot exceed 80%)
- Warrantable condos must meet Fannie Mae warrantability requirements (LTV cannot exceed 70%)
- 10 acres maximum
- Non-warrantable condominiums not allowed
Q: What are the minimum and maximum loan amounts for Rental Loans offered by Next-Financing?
A: Next-Financing Rental Loans have a minimum loan amount of $75K and a maximum loan amount up to $2M. A borrower can have no more than $3M worth of loan amount and no more than 6 properties.
Q: What States does Next-Financing offer it’s Rental Loan Products?
A: Next-Financing provides Rental Loans in all States and District of Columbia except Alaska and South Dakota.
Q: What is the minimum FICO Score for Next-Financing’s Rental Loans?
A: Next-Financing’s Rental Loan FICO score minimum is 620. Tri-merged credit report is required for all personal guarantors and determined as follows:
- If 2 credit bureau scores are reported, the representative score is the lower score; and
- If 3 credit bureau scores are reported, the representative score is the middle score.
- Foreign Nationals without an ITN are not subject to FICO requirements
Q: What type of documentation is required for Next-Financing’s Rental Loans?
A: Next-Financing requires the following documentation from borrowers interested in our rental loans:
- Next-Financing’s online application, completed by borrower
- Most recent two months bank statements or the most recent quarterly statement
- A list of properties you currently own (a REO Schedule)
- No Tax Returns Required
- Lease(s) – (if currently rented)
- Certification of Business Purpose/Non-Owner Occupied Affidavit
- Sales Contract (on purchase)
- LLC Operating Agreement or Articles of Corporations
- Driver’s License
Other documents and/or materials may be requested based on the individual borrower’s circumstances and collateral.
Q: Who is eligible for our Rental Loans?
A: Our rental loans are available to the following borrowers:
- U.S. Citizens
- Permanent Resident Aliens
- Non-permanent Resident Aliens
- Foreign Nationals
- LLCs, Limited Partnerships, General Partnerships, Corporations
Q: What is Debt Service Ratio Coverage?
A: Debt Service Coverage Ratio (DSCR) is a calculation that helps us determine if a rental investment is generating enough income to make its loan payment obligations.
DSCR is calculated by the following simple formula:
DSCR = Monthly Gross Income
*Principal, Interest, Taxes, Insurance and Association Fees.
Q: What are the cash out eligibility and restrictions?
A: The cash out eligibility and restrictions are the following:
- Six months since prior financing or date of purchase is required.
- Delayed Financing Exception per FNMA permitted and prior Bridge Loans with Next-Financing qualify.
- Loans not eligible for cash-out: Properties listed for sale by the borrower in the past three months.
Q: Does my Rental Property have to be leased before closing?
A: The following are the lease requirements:
- An executed lease with no less than 3 months remaining at time of close
- Unleased properties the gross rents indicated on the 1007 may be used
- Gross income is the lower of actual rents and market rent as indicated on Form 1007
Q: Can I live in one of my rental properties or rent it to a family member?
A: No. Next-Financing provides commercial only loans that are non-owner occupied (investment) properties.
Q: Is there a Prepayment Penalty?
A: Prepayment Penalty conditions are as follow:
- Term: 3 Years
- Type: 80% of 6 months interest
- There are buy down options, please call us to learn more. 800-605-1821.