Long Term Rentals Are Back

Long Term Rentals had more issues with lenders due to secondary market implosion at the start of CORVID-19 however lenders have adjusted and now back to lending longer term. Pricing is now starting to improve however LTV's have not made as quick of a comeback and will take longer. Investors who are in bridge loans now perhaps have to consider keeping properties longer due to current events or looking to keep property as a rental can look at longer terms. Borrowers with solid financial position in California & Florida can finance 1-4 unit properties with rates starting from 4.25% 3 years ARM amortized over 30 years. Borrower with less assets can get rates starting from 5.75% floor rate and up available in 19 states. It is important property is cash flow positive due to debt service ratio of 1.2 is used currently to qualify for housing expense ratio.