NO MONEY DOWN** PORTFOLIO EXPANSION LOANS
is currently offering no money down** portfolio expansion loans to investors who have sufficient equity in their existing portfolio.
In today's lending climate it may be difficult, or even impossible, to tap the equity from an investor's existing portfolio for the purpose of acquiring even more rental property. To the contrary, our portfolio expansion loan program encourages this, by cross-collateralizing an investor's existing portfolio and the newly acquired property under one blanket mortgage, so as to use existing equity in lieu of a cash down payment to expand their portfolio.
The primary lending criteria for our portfolio expansion loans is based on the cash flow of the properties being financed, from which we will calculate the debt service coverage ratio (DSCR). At lower loan-to-values, the property may not be subject to DSCR limitatations, and the loan may be made strictly upon the loan-to-value.
For a general overview of how our portfolio expansion loan program works, see the examples below.
Example 1: An investor owns a 12-unit property with a current market value of $1,000,000, which is owned free and clear. The investor wishes to purchase three additional 12-unit properties with a value of $3,000,000 using no money down. **A new $3,000,000 (75% LTV) blanket mortgage would be used to encumber both the existing property and the three new properties being purchased, which have a combined value of $4,000,000, thus allowing the investor to expand their portfolio by three additional 12-unit properties using no money down, by using their existing equity in lieu of a cash down payment.
Example 2: An investor owns a 12-unit property with a current market value of $1,000,000, which is encumbered with a mortgage with a $500,000 balance. The investor wishes to purchase one additional 12-unit property with a value of $1,000,000 using no money down. **A new $1,500,000 (75% LTV) blanket mortgage would be used to encumber both the existing property and the new property being purchased, which have a combined value of $2,000,000, and the existing $500,000 mortgage would be paid off from the blanket mortgage proceeds, thus allowing the investor to expand their portfolio by one additional 12-unit property using no money down, by using their existing equity in lieu of a cash down payment.
Properties may be located in AL, AR, CO, CT, DC, DE, GA, IL, IN, IA, KY, LA, ME, MD, MA, MI, MO, NH, NM, OH, OK, OR, PA, SC, TN, TX, VA, WA, WV, WI, WY. CA is coming soon, please inquire.
- Up to 75% LTV blanket mortgage.
- Debt service coverage ratio (DSCR) of only 1.15.
- 15% of gross rent used as vacancy and expense factor.
- No tax returns or 4506-T.
- Minimum 650 middle credit score for at least one borrower.
- $700,000 minimum loan amount.
- No maximum loan amount.
- SFR, PUD, condo, townhouse, 2-4 units, multifamily apartments allowed.
- 7-door minimum (any combo, such as 4-unit + 3-unit, or 7 separate SFR).
- 20-door maximum per assessor parcel number.
- No limit on number of units financed per investor.
- 30-year amortization.
- 5-year or 10-year balloon.
To download a loan application
for our no money down**
portfolio expansion loan program:
LENDERLINE® is your no money down**
portfolio expansion lender of choice.
Questions? Call us toll-free at 1-888-661-7888.