Painless Rental Loans

A conventional rental property loan is a mortgage specifically designed for real estate investors looking to purchase or refinance a residential rental property. With competitive interest rates and various term options, these loans are popular among seasoned and novice investors. Generally, an individual can get up to 10 such loans in their name.

Not sure which loan option is best for you? Email us at success@baselane.com if you’d like to schedule a free consultation with our knowledgeable loan officers.

A hard money loan, also known as a private money loan, is a short-term financing option predominantly issued by private lenders and secured by the property’s value. These loans have terms typically ranging from 3 months up to 5 years. Designed for quick funding of projects like fix-and-flips, they have higher interest rates but unmatched flexibility and speed to close.

Not sure which loan option is best for you? Email us at success@baselane.com if you’d like to schedule a free consultation with our knowledgeable loan officers.

An Asset-Backed rental property loan, commonly known as a DSCR (Debt Service Coverage Ratio) loan, is a great option for real estate investors, emphasizing the property’s income potential rather than the borrower’s personal income. Unlike traditional loans, DSCR loans don’t require proof of income. Instead, borrowers can qualify based on the property’s cash flow, offering faster closing times and more flexible funding solutions.

Not sure which loan option is best for you? Email us at success@baselane.com if you’d like to schedule a free consultation with our knowledgeable loan officers.

DSCR = Net Operating Income / Debt Service

Debt service coverage ratio indicates the amount of net cash flow available to pay the mortgage. Both real estate investors and lenders use the debt service coverage ratio when analyzing rental property performance. Knowing how to calculate net operating income is key to accurately determining the debt service coverage ratio. Debt service coverage ratio can increase or decrease from year to year.

Example: If a rental property is generating an annual NOI of $10,500 and the annual mortgage payment is $8,700 (principal and interest), the debt service coverage ratio would be:

DSCR = NOI / Debt Service
$10,500 NOI / $8,700 Debt Service = 1.21

A DSCR of 1.21 means there is extra net operating income available than is needed to service the annual debt. On the other hand, a DSCR of 0.95 means that there is only enough net operating income available to pay for 95% of the annual debt payments.

It depends. Read our articles to learn more:

• 5 Best Loan Types When Buying a Rental Property
• How to Get Loan for a Rental Property: Everything You Should Know

Generally, the loan amount and rates are subject to your personal financial profile, the property valuation and cash flow, your experience level, and your source of capital.

Below is a list of things that can help you get the best rental property loan terms:

Stellar Credit Score: A higher score generally offers better interest rates. Regularly monitor your credit, correct any discrepancies, and pay down outstanding debts.

Sizeable Down Payment: A substantial down payment (usually 20% or more) can secure better terms because it reduces the lender’s risk. It can also help you avoid private mortgage insurance (PMI).

Stable Income and Employment: Lenders want assurance that you can meet your monthly obligations. If you’re self-employed, be prepared with several years of income documentation or apply for a DSCR or Hard Money Loan.

Low Debt-to-Income Ratio (DTI): This ratio indicates how much of your income is tied up in debt payments. A lower DTI can position you for a better loan because it shows you have a handle on your finances.

Experience: Lenders like to see experience in property management or real estate investment. This can sometimes result in better terms, especially for fix and flip loans.

Hire a Mortgage Broker: Brokers can help you navigate the complexities of the lending world, often securing terms and rates that you might not find on your own. Our partner Simplist, can help you shop over 50,000 lenders. Click here to get started.

For rental loans, the minimum median credit score is 640. For rehab loans, it’s 680 for newbies and 575 for prolific rehabbers. To see whether your credit score qualifies and receive an instant quote, apply with us today and speak to a loan officer.

All rates are subject to change. To see today’s rates for your scenario, submit an application.

To get started, simply apply online, and one of our loan officers will contact you. Based on the best loan type for your rental deal, we can provide the required documents. Click here to get started.

This depends on the type of loan. Typically, our digital award-winning process allows us to close within 10-20 business days of full file receipt, including an appraisal.

We partner with Simplist to offer portfolio loans. Click here to get today’s rates.

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* Bridge loan rates and terms are based on a combination of factors: LTV, FICO, and experience and are subject to change. Interest rates or charges herein are not recommended, approved, set or established by the State of Kansas.

All loans are available in 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.