Investor Loan Programs

The ‘blanket’ loan program is a loan used for multiple properties. One loan “blankets” multiple properties. This program is also sometimes referred to as a ‘small portfolio loan.’

Key Features:

1. Debt Service Coverage Ratio (DSCR) Based: Qualification and loan terms are primarily determined by the income generated from the properties relative to the debt obligations, typically requiring a DSCR of at least 1.25.
2. Multiple Properties: Allows borrowers to finance multiple investment properties under a single loan, streamlining management and potentially reducing costs.
3. Flexible Property Types: Can include various property types such as single-family homes, multi-family units, and commercial properties.
4. Cross-Collateralization: The loan is secured by all properties in the portfolio, spreading the risk across multiple assets.
5. Simplified Underwriting: Focuses more on the cash flow and income potential of the properties rather than the borrower’s personal income or credit score.
6. Scalable Loan Amounts: Typically offers higher loan amounts compared to individual property loans, accommodating the needs of investors with larger portfolios.
7. Interest Rates and Terms: May offer competitive interest rates and flexible terms, but these can vary based on the overall risk profile and DSCR of the portfolio.
8. Amortization Options: Often provides options for interest-only periods or varying amortization schedules to match the investor’s cash flow needs.
9. Non-Recourse Options: In some cases, loans may be non-recourse, meaning the lender can only claim the properties, not other assets of the borrower, in case of default.

Qualification Requirements:

1. Minimum DSCR: Typically requires a DSCR of at least 1.25, though this can vary by lender.
2. Experience: Borrowers often need to demonstrate experience in managing investment properties, especially for larger portfolios.
3. Property Cash Flow: Detailed income and expense statements for each property to prove sufficient cash flow to cover the debt service.
4. Property Condition: Properties must meet certain conditions and may need to be appraised to confirm their value and condition.
5. Equity Requirements: Borrowers may need to have a certain amount of equity in the properties, often 20-30%.
6. Reserves: Lenders may require reserves for maintenance and unexpected expenses, typically equivalent to several months of debt service.
7. Credit Score: While the borrower’s credit score is less critical, a minimum score may still be required (often around 620 or higher).
8. Legal Structure: Properties are often required to be held in a legal entity such as an LLC, providing protection and clearer liability structure.
9. Documentation: Comprehensive documentation including rent rolls, leases, property management agreements, and financial statements for each property.

This list provides an overview of the typical features and qualification requirements for a DSCR blanket loan program, though specific criteria may vary.

Discuss this program with a Churchill Loan Officer

This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not Churchill Mortgage. Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.

The DebtService Coverage Ratio (DSCR) loan program makes financing investment properties easier than ever since you can qualify for a home loan based on each property's expected cash flow.

With no limit on financed properties and a credit score requirement as low as 620, your next investment may be closer than you think.

Loan Perks:

• FICO requirement as low as 620, and up to 80% LTV for scores of 700 and up
• No tax returns or W-2s required to qualify
• No property limit and a maximum loan amount of $6.25M under a blanket loan
• 5, 10, and 30-year terms for financing with interest-only available

If you’re looking to expand your investment property portfolio, talk to your Churchill Loan Officer!

Discuss this program with a Churchill Loan Officer

This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not Churchill Mortgage. Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.

This program is for real estate investors looking to purchase a home or property with an LLC (Limited Liability Company).

As LLC's are a different legal entity than individuals, lenders typically have stricter requirements to lend to an LLC. This loan program is a perfect fit for business investors looking to purchase property.

This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not Churchill Mortgage. Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.

Discuss this loan program with a Home Loan Specialist

This program is for real estate investors looking to purchase multi-unit properties larger than 4 units.

Multi-Unit properties have typically larger loan amounts, and are usually rental properties generating revenue for an individual or business. This program help buyers structure their loans to best manage their cash flow for unique investment opportunities

Discuss this loan program with a Home Loan Specialist

This product is offered via a lender partner/broker channel. Subject to the terms and conditions of that lender, not Churchill Mortgage. Other restrictions or limitations may apply. Not all applicants will qualify. Not a commitment to lend. Terms and conditions can change without notice.

Short-term rentals, such as vacation properties or Airbnb units, are rented out on a nightly or weekly basis and can generate higher rental income during peak seasons. They often require more active management and maintenance but offer flexibility to use the property personally. Long-term rentals, on the other hand, involve leasing the property for extended periods (typically six months to a year or more). They provide more stable and predictable income but usually generate lower monthly rental rates compared to short-term rentals. Investors should consider their management capacity, desired income stability, and market demand when choosing between these options.

Investing in single-family homes (SFH) generally requires less upfront capital, is easier to manage, and tends to attract long-term tenants seeking stability. They can be easier to sell individually and may appreciate in value more steadily. However, SFH investments may generate lower overall rental income compared to multi-family housing.

Multi-family housing, such as duplexes, triplexes, or apartment buildings, can provide higher rental income due to multiple units. They offer economies of scale in management and maintenance and can mitigate vacancy risk since income continues from occupied units even if one unit is vacant. However, multi-family properties typically require larger initial investments, more complex management, and may have higher maintenance costs.

Lenders assess the risk and return potential for investment properties by evaluating several factors:

• Creditworthiness: The investor’s credit score, income, and financial stability.
• Property Value: The current and projected market value of the property.
• Rental Income: Potential rental income, including market rent rates and occupancy rates.
• Location: The property's location, including local market conditions, economic factors, and neighborhood desirability.
• Experience: The investor’s experience and track record in managing rental properties.
• Debt Service Coverage Ratio (DSCR): The ratio of net operating income to total debt service, indicating the property’s ability to cover its mortgage payments.

By evaluating these factors, lenders determine the loan terms, interest rates, and eligibility for investment property financing.