Terms & Conditions
Loan Term |
30 Year Fixed |
Borrowers |
Individual or Entity (Properties located in NY, FL, and GA must close in an entity name) |
Guaranty |
Full recourse guaranty required from at least one (1) qualifying individual that directly or indirectly has an ownership interest ≥ 20% in the borrowing entity |
Minimum Loan Size |
$75,000.00 |
Maximum Loan Size |
$2,000,000.00 *Loans > $1,500,000 require a 2nd appraisal |
Minimum Property Value |
$100,000 |
Maximum Property Value |
N/A |
Maximum LTV |
● Purchase – 80% |
Minimum DSCR |
1.0 |
DSCR Calculation |
Qualifying Gross Rent divided by PITIA + HOA if applicable |
Qualifying Gross Rent |
Refinance Transactions ● Leased Units = Lesser of 110% Market Rent and in-place rent Purchase Transactions ● Leased Units = Lesser of 100% Market Rent and in-place rent if applicable |
Fees |
Origination Fee – The greater of 1.5% of the loan amount or $3,000 |
Lease Requirements |
Fully executed active 12-month lease agreement signed by all parties Month-to-Month leases require 9 months of reserves ● If the lease has expired and does not indicate a MTM term, a fully executed lease is required Each leased property must be used for residential purposes ONLY and be leased to a single family (per unit if multiple units). All leases must be to unrelated third party leases |
Occupancy Requirements |
Refinance Transactions ● Single family properties must be leased at the time of closing Purchase Transactions ● Vacant properties are permitted |
Property Value Seasoning Requirements for Refinance Transactions |
If the property is owned less than 3 months from Acquisition Date to Note Date, the maximum loan amount, LTV, or Unpaid Principal Balance if for Rate/Term will be capped by original purchase price + verified cost of improvements If the property is owned between 3 months and 6 months from Acquisition Date to Note Date, the maximum loan amount will be capped by original purchase price + verified cost of improvements (If LTC is ≤ 120%, As-is value may be utilized for loan sizing) If the property is owned between 6 months and 12 months from Acquisition Date to Note Date, the loan amount will be based on As-is appraised value and maximum LTV cannot exceed 140% of total LTC |
Eligible Properties |
● SFR/PUD/Townhomes |
Common Ineligible Properties |
● Manufactured Homes or Mobile Homes |
Ineligible States |
AK, AZ, ID, MN, NV, ND, SD, OR, UT, VT, and WY |
Liquidity Reserve Requirements |
Total Reserve Requirement = Cash to close (Final HUD) + 6 months PITIA + 1% unpaid principal balance on all mortgages reported on CBR ● If lease is MTM, 9 months PITIA will be required instead |
Eligible Assets |
Personal bank, brokerage, retirement account ● Joint Accounts with non-Guarantors acceptable but will be limited by % ownership Cash Value Life Insurance statement Business bank or brokerage account in the name of Borrowing entity ● If in an entity other than Borrowing entity, will be based on % of Guarantor’s ownership Bank or brokerage account held in a Revocable Living Trust ● Will require full Trust Agreement detailing beneficiary and access to funds |
Insurance Requirements |
● 100% of insurable value of improvements or the unpaid principal balance of the mortgage *Request a free quote from our partners at Obie insurance @ https://www.obieinsurance.com/partner/investor-property-loan |
Property Condition/Deferred Maintenance |
All properties/units are required to be in lease-ready condition with no renovations or repairs required Properties must have a property condition rating of C1 to C4 as reflected in the appraisal Deferred maintenance and repair items identified in 3rd party reports must be cured ● For Purchase Transactions, cost to cure cannot exceed 3% of the value of the property or $2,500 in repairs. Escrow holdback of 150% of the cost to cover will be withheld from Loan Proceeds and an escrow holdback will be required at closing. Borrower will have up to 30 days from closing to complete the work via a final inspection (1004D) to see that deferred maintenance or repairs have been cured |
Qualifying FICO Score |
680 minimum middle score between Experian, Equifax, and Transunion |
Guarantor Credit Requirements |
● Minimum of 3 Trade Lines (open or closed) must be established |
Background Requirements |
An applicant with a conviction relating to or arising out of financial theft, financial fraud, and financial misrepresentation, money laundering, forgery or other financially related crime is ineligible Felony convictions that occurred more than 3 years prior to an application for credit are acceptable. Evidence of court records or a letter of explanation for the conviction must be provided for review |
Foreign Nationals/Non-Permanent Resident, and ITIN |
Not allowed. Guarantor must be a US Citizen or Green Card Holder |
Changes to this Policy
IPL may update this Policy at any time and from time to time.
Contact Us
If you have any questions about this Policy or would like to learn more, please write to us at;
Investor Property Loan
16300 Ventura Blvd Ste 100,
Encino, CA 91436