Rental 360 Loans
Rental 360 Loan
A Commercial Loan Rental 360 is a specialized loan product designed for real estate investors who own or are acquiring rental properties. These loans are structured to provide long-term financing with flexible terms, making them an ideal solution for investors seeking stability and predictable cash flow.
Considerations Before Choosing Rental 360 Loan
1. Loan Terms & Interest Rates
✔ Fixed vs. Adjustable Rates – Fixed rates provide stability, while adjustable rates may offer lower initial costs but carry potential rate fluctuations.
✔ Loan Term Length – A 30-year term offers lower payments, but shorter terms may result in faster equity growth.
2. Loan-to-Value (LTV) & Down Payment
✔ LTV Limits – Most lenders allow up to 80% LTV, meaning investors need at least 20% down for purchases.
✔ Refinance LTV – Typically capped at 75–80% for rate-and-term refinancing and 70–75% for cash-out refinancing.
3. Debt-Service Coverage Ratio (DSCR) Requirements
✔ Rental Income vs. Loan Payments – DSCR measures whether rental income covers mortgage payments.
✔ Minimum DSCR – Most lenders require 1.0–1.25, though some offer options for lower DSCR if other qualifications are strong.
4. Property Type & Location
✔ Eligible Properties – Single-family rentals (SFR), 2–4 units, multifamily (5+), and mixed-use properties are often accepted.
✔ Market Conditions – Consider rental demand, appreciation potential, and regulatory policies for short-term rentals.
5. Borrower Qualifications
✔ Credit Score – Minimum 620+ is common, but better scores lead to lower rates.
✔ Personal vs. Business Loan Structure – Loans can be taken under an LLC or corporation to separate personal liability.
6. Prepayment Penalties & Fees
✔ Prepayment Penalties – Many Rental 360 loans include a 3- to 5-year prepay penalty, which can affect future refinancing.
✔ Closing Costs – Expect 2%–5% in fees, including appraisal, underwriting, and origination costs.
7. Loan Approval & Closing Time
✔ Processing Speed – Loan approvals can take 3–6 weeks, so investors should plan accordingly.
✔ Required Documentation – Lenders focus on property income, requiring rent rolls, lease agreements, and property appraisals.
8. Future Investment Plans
✔ Portfolio Growth – If planning to scale, a portfolio loan (covering multiple properties) might be a better alternative.
✔ Exit Strategy – Consider long-term hold vs. selling or refinancing options before committing.
- Dedicated Client Support
- Competitive Rates & Terms
- Tailored Financial Solutions
- Fast & Easy Application Process
- Access to a Broad Lender Network
- Financial Expertise You Can Trust
Pros & Cons of Commercial Rental 360 Loans
Pros:
Long-Term Stability: A 30-year loan provides consistent payments and financial predictability. No Personal Income Verification: Qualification is based on rental income rather than personal earnings. High Loan-to-Value (LTV) Options: Up to 80% for purchases and 75% for cash-out refinances. Flexible Borrower Structure: Loans can be taken under an LLC or corporation for asset protection. Cash-Out Refinancing: Investors can access built-up equity to expand their portfolios. Suitable for Various Property Types: Can finance single-family rentals, multifamily units, and mixed-use properties.
Cons:
Prepayment Penalties: Some lenders impose penalties for early repayment, limiting refinancing options. DSCR Requirement: Must meet minimum rental income-to-loan payment ratio, which can be challenging in lower-rent areas. Higher Interest Rates Compared to Conventional Loans: DSCR loans typically have slightly higher rates than traditional mortgages. Limited for Owner-Occupied Properties: Primarily for investment properties, not for personal residences. Longer Closing Times Than Hard Money Loans: Typically takes 21–45 days to close, slower than short-term financing.
We specialize in DSCR Rental 360 financing across all 49 states. Our competitive rates, flexible terms, and quick approval process are designed to help you succeed. Whether you’re a seasoned investor or new to the market, we’ll work with you to structure a loan that fits your project’s unique requirements.
Contact Us Today Ready to fund your next Rental DSCR Loan? Reach out to Genesis Global Investment Group for expert guidance and fast funding. We’re here to help you maximize your investment potential! Apply Now
rental 360 Loan FAQ's
Who is eligible for a Rental 360 loan?
Rental 360 loans are designed for real estate investors, including individuals, LLCs, and corporations, who own or plan to acquire income-generating rental properties. Borrowers typically need a credit score of 620 or higher and must meet DSCR requirements.
What is DSCR, and why is it important?
DSCR (Debt-Service Coverage Ratio) measures a property's ability to cover its debt payments using rental income. A DSCR of 1.0 or higher means the rental income is sufficient to cover the loan payment. Most lenders require a minimum DSCR of 1.0–1.25.
What are the typical interest rates for commercial bridge loans?
Interest rates for rental 360 can vary widely based on market conditions, the borrower’s creditworthiness, and the property’s appraisal value. However, they are usually higher than traditional long-term financing options (typically 8%-12%)
What credit score is required to qualify for a commercial bridge loan?
The required credit score is 650 min.
While most lenders continue to examine your credit report during the loan application process, this review is not the primary determinant for loan approval. Instead, assessing your credit score serves as a way to assess your eligibility for refinancing into a traditional commercial loan, which can be a strategic exit strategy
Do I need to provide a down payment?
Yes, if you're purchasing a rental property lenders require a down payment. The amount varies by lender and can range from 20-30% of the property’s purchase price.
How much can I borrow with a Rental 360 loan?
Loan amounts typically range from $100,000 to $5 million, depending on the property’s value, rental income, and borrower qualifications.
Are there any fees associated with Rental 360 loans?
Yes, our rental 360 loans comes with various fees, including origination fees, and closing costs, so it’s essential to review the terms before proceeding.
Are there prepayment penalties for paying off the loan early?
Some Rental 360 loans have prepayment penalties, particularly within the first 3–5 years. However, options with lower or no prepayment penalties may be available.
Who Are Rental 360 Loans For?
Rental 360 loans are designed specifically for real estate investors looking for long-term financing options that prioritize rental income over personal income. These loans are ideal for individuals and entities seeking to expand or optimize their rental portfolios.
1. Real Estate Investors (Buy-and-Hold Strategy):
✔ Investors who acquire single-family homes (SFRs), multifamily properties, or mixed-use properties for long-term rental income.
✔ Those looking for low-rate, long-term stability compared to hard money or short-term bridge loans.
2. Landlords Expanding Their Portfolio:
✔ Experienced landlords aiming to purchase additional properties without traditional income verification.
✔ Investors who want to leverage their existing properties for cash-out refinancing to grow their portfolio.
3. Investors Seeking Passive Income (Short-Term or Long-Term Rentals):
✔ Individuals who prefer passive income from rental properties rather than active property flipping.
✔ Owners of Airbnb or short-term rental properties that generate consistent income.
4. Self-Employed & Business Owners:
✔ Entrepreneurs and self-employed individuals who may have difficulty qualifying for conventional loans due to non-traditional income sources.
✔ Business owners who structure investments under LLCs, corporations, or partnerships for asset protection.
5. Investors Needing Alternative Loan Qualification:
✔ Those with strong credit and assets but who want a loan based on property cash flow (DSCR) rather than personal income.
✔ Borrowers who don’t want to provide tax returns or extensive financial documentation.
6. Foreign Investors (Non-U.S. Residents):
✔ Non-U.S. citizens looking to invest in U.S. real estate without needing traditional income verification.
✔ Investors who want asset-based loans to fund property purchases from abroad.
7. Real Estate Investors Using 1031 Exchange:
✔ Those reinvesting profits from sold properties into new rental properties to defer capital gains taxes.
What can rental 360 loans be used for?
Uses of Rental 360 Loans
Rental 360 loans are designed to provide long-term financing for real estate investors. These loans can be used for a variety of investment strategies, including purchasing, refinancing, and leveraging equity.
1. Purchasing Rental Properties:
✔ Single-Family Rentals (SFR) – Ideal for long-term buy-and-hold investors.
✔ Multifamily Properties (2–4 units, 5+ units) – Suitable for investors expanding their rental portfolio.
✔ Mixed-Use Properties – Can be used for properties with a combination of residential and commercial units.
✔ Short-Term Rentals (Airbnb, VRBO) – Many lenders allow vacation rental financing based on rental income.
2. Refinancing Existing Rental Properties:
✔ Rate-and-Term Refinance – Lower your interest rate or adjust loan terms for better cash flow.
✔ Cash-Out Refinance – Pull equity from existing properties to reinvest in new real estate opportunities.
3. Portfolio Expansion:
✔ Portfolio Loans – Finance multiple rental properties under one loan to simplify management and reduce costs.
4. Property Improvements & Renovations:
✔ Light Renovations – Some lenders allow funding for minor property upgrades to increase rental value.
✔ Property Stabilization – Finance rental properties needing tenant placement or minor rehab to meet DSCR requirements.
5. 1031 Exchange Financing:
✔ Replacement Property Purchase – Use a Rental 360 loan to acquire a new rental property under a 1031 exchange to defer capital gains taxes.
6. Consolidating Debt on Investment Properties:
✔ Refinance Multiple Loans – Consolidate multiple high-interest loans into one long-term Rental 360 loan.
Rental 360 loans offer real estate investors flexible financing solutions for acquiring, refinancing, and expanding rental portfolios. They focus on property cash flow (DSCR) rather than personal income, making them an attractive option for scaling investment strategies.
Can I use a Rental 360 loan for a short-term rental (Airbnb/VRBO)?
Yes, many lenders allow short-term rentals, but they may have specific DSCR calculations based on actual or market rental income.
Do I need to provide tax returns or personal income verification?
No, Rental 360 loans are asset-based, meaning they primarily assess the rental income of the property rather than personal income or tax returns.
How long does it take to close a Rental 360 loan?
Closing times vary but typically take between 21 and 45 days, depending on documentation, appraisal, and underwriting.
Can I do a cash-out refinance with a Rental 360 loan?
Yes, cash-out refinancing is available for investors looking to tap into their property’s equity for further investments or other financial needs.
Can I finance a portfolio of rental properties with Rental 360?
Yes, many lenders offer portfolio loans, allowing investors to finance multiple rental properties under one loan.
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Rates as low as 8% to 12%
$ k+
Loans from $100K to $2M
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Up to 85% for Purchase and Rate & Term Refinances, Up to 75% for Cash Out Refinances
YR
Fixed 5, 7, 10-year hybrid, 30 Year amortization
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