When borrowing from a bank, single-family rental (SFR) loans typically require a significant down payment and a high credit score. Banks or financial institutions will also look at your debt-to-income ratio, which could make the qualifying process more difficult. SFR loans are similar to applying for a mortgage on a home, but because these properties are not occupied by the borrowers, the loans needed may be seen as higher risk.
SFR loans are often regarded as higher risk because borrowers may struggle to find people to rent out their properties, especially in times of economic downturn. This could result in them simply returning their keys to the investment property and walking away, something that no bank wants!
InstaLend single-family rental loans may be easier for investors than traditional loans because our loans are primarily asset-based. This means we do not require income verification. Additionally, our single-family rental loans can be customized to cater to each investor’s specific needs.
InstaLend’s single-family rental loan terms are 30 years; the loan amount is $75,000+ and covers single-family properties ranging from one to four units.
