How much do I need to put down for a down payment if I am purchasing a property?

You can put as little as 20% down and get a loan up to 80% of the price of the property. For multifamily properties (5-8 units) or mixed-use properties with commercial units, minimum cash down is 25%.

 

I’m planning on purchasing a property that is vacant and to lease it after I buy. Is this OK under the EasyRent program?

Yes – this is fully eligible for residential properties up to four units. We will use the market rent (as determined by the appraisal) to project cash flows for the property. Additionally, if planned to utilize the property as a short term or vacation rental, we can utilize projects from industry data providers to qualify the loan.

 

I’m a first-time investor and have been told by other lenders that I need experience to obtain a loan for an investment property. Can I qualify with EasyRent?

Yes, with no restrictions! We offer all of our programs to first-time investors and love to help people build their portfolio throughout their investing journey.

 

I have partners in an LLC with split ownership of the property, is that OK?

Yes – in fact we recommend borrowing through an LLC (however borrowing as an individual is OK in most states). We require a full guaranty for anyone who has more than 25% of ownership of the entity and allow up to four separate guarantors on each loan.

 

I was turned down by my bank because they were not comfortable with my tax returns or being self employed? Will this be an issue?

No – we do not use tax returns of income verification for qualification. We do not utilize a DTI (“Debt to Income”) ratio at all in our underwriting process.

 

I am looking to finance a portfolio of several properties and would prefer one loan, do you offer blanket loans or would I need to do individual loans for each?

Yes – we offer portfolio “blanket” loans with very similar terms to our normal parameters. We can lend on up to 20 properties in a single loan, and require a minimum DSCR of 1.20x and that the properties are all located in the same state.

 

I have a bankruptcy or foreclosure in my history, will that prevent me from getting a loan financed through EasyRent?

No – we are a flexible lender that can work with borrowers with blemished credit history. Our median FICO minimum is 620, which allows the vast majority of potential borrowers to qualify with us. We have a limit of one bankruptcy, foreclosure or short sale within the past seven years and require that all delinquencies on the credit report be cured prior to closing our loans. You may have to pay a moderately higher rate, but we should be able to find a loan for every investor, even with credit flaws.

 

How is DSCR (“Debt Service Coverage Ratio”) calculated?

We calculate DSCR by taking monthly Projected Income (Rent or STR income) divided by your monthly payment – PITIA (principal, interest, tax escrow, insurance escrow and any HOA dues). No expenses besides taxes, insurance or HOA dues are considered in underwriting or qualification.

 

I have heard from other lenders that anything over 4 units or with a commercial element (mixed use), the underwriting will take into account lots of operating expenses that jeopardizes cash flows and qualification. Is that also the case with EasyRent loans?

No – EasyRent is different than most lenders in that we will not take into account non-tax, insurance or HOA expenses so any other costs such as utilities, repairs & maintenance, management fees, cleaning fees or others will not be considered, even if the property has commercial units. This allows investors, particularly investors in 5-8 unit multifamily and mixed use properties, to qualify much easier and get access to low-rate 30-year fixed loans with EasyRent – a gamechanging product.

 

My property is a condo, is that eligible?

Yes, we lend on condos with loans consistent with our standard structure and rates. There are some limits on LTV and DSCR based on the characteristics of the condo structure, but are welcomed by Easy Street Capital.