Non-Owner Occupied And Rentals – Hard Money Loans, Bridge Loans

To schedule a free loan consultation, please call (254) 230-0012 (for loans in Texas) or (503) 222-4466 (for loans in Oregon and other states).

With rental property, you can make money two ways – on the monthly cash flow (if it’s positive) and on the increase in equity (if the property goes up in value).

With such appealing possibilities for financial gain, it’s a wonder that everyone doesn’t own a few non-owner occupied properties…until you understand the landscape of finding financing for rentals!

Challenges Of Getting A Loan For A Rental Property

Traditional lenders and mortgage companies are far more cautious about financing rental properties than owner-occupied properties for a variety of reasons.

Higher Risk Of Default: Lenders perceive rental properties as having a higher risk of default compared to primary residences. The rationale is that in times of financial hardship, borrowers are more likely to prioritize the mortgage on their primary residence over a rental property. The increased risk means that lenders apply stricter lending criteria and/or charge higher interest rates to mitigate potential losses.

Income Stability: Rental income can be variable. Vacancies, tenant turnover, and unexpected maintenance issues can affect the amount of income that a rental property is able to generate. Lenders might be concerned about your ability to cover mortgage payments during periods when the property isn’t generating sufficient rental income, especially if you don’t have other stable income sources to use to cover any shortfalls.

Loan Qualification Criteria: Mortgage companies often have more stringent qualification criteria for borrowers looking to finance or refinance rental properties. This can include higher credit score requirements, stronger financial reserves, and a proven track record of successfully managing rental properties. Lenders will closely examine your debt-to-income ratio (DTI) and may also require the property itself meet specific income-generating criteria.

Property Condition And Appraisal Concerns: Rental properties are often in worse condition than those purchased as primary residences, especially if you’re planning to renovate the property to increase its value. Lenders might have specific guidelines regarding the condition of the property and its valuation, which can make it more challenging to finance properties in need of significant repair or renovation.

Regulatory And Institutional Policy Restrictions: Lenders might also face regulatory or institutional policy restrictions that limit their ability to finance rental properties. These can include limitations on the number of mortgages one borrower can have, as well as additional scrutiny from regulatory agencies on loans for investment properties.

We Can Provide Hard Money Loans For Rentals And Non-Owner Occupied Properties

At TriTalent Funding Group, since 2004, we’ve been providing financing and re-financing for rentals and non-owner occupied properties. We’re a small company, without layers of decision-makers, and we make decisions quickly. We can typically approve a loan in a few days and fund the loan within 7 days.

We provide short-term loans (up to one year) that range from $75,000 to $7 million, and we can loan to individuals, partnerships, LLCs, corporations, and trusts.

There’s no pre-payment penalty on our loans, and you pay interest only over the term of the loan, through monthly payments.

Other Types Of Residential Loans

In addition to providing hard money loans for rentals and non-owner occupied residences, we also provide loans for fix and flip projects, renovations and rehabs, BRRRRs, and vacation homes and second homes.

For more information about loans for rentals and non-owner occupied properties, or to schedule a free loan consultation, please call (254) 230-0012 (for loans in Texas) or (503) 222-4466 (for loans in Oregon and other states).

Please note that we provide hard money loans throughout Texas, including: Dallas-Fort Worth, Austin, Waco, and San Antonio. We also provide hard money loans in Oregon, Washington, California, Nevada, and Arizona.