Do you lend on owner-occupied houses?
No. We only provide financing for investment properties. This means that the borrower cannot live on the property at any time during the course of the loan.
Do you provide a letter of pre-approval?
Yes, you can get pre-approved for our rental financing after you apply and submit the necessary documentation. Pre-approval is typically issued within 24 hours upon receipt of application and necessary documentation.
Do you lend to foreign investors?
We do offer the Rental 2+1 loan to foreign investors, which serves as a short-term bridge loan. We do not provide long-term financing to foreign investors with our Rental30 program.
How does my credit score affect the approval of my application?
For the Rental30 and Rental2+1 programs, all individuals on the loan must have a minimum credit score of 660. Your credit score is a key factor in determining interest rate.
Is there a prepayment penalty?
For our Rental30 program, a prepayment penalty applies for the first five years of the loan. 5% the first year, stepping down 1% each year after that.
*Note that one can pay down up to 20% in additional principal outstanding at any point in the first five years without incurring a prepayment penalty.
Is an appraisal always required to fund a loan?
An appraisal is required for both the Rental30 and Rental2+1. Although the appraisal is an expense for the potential borrower, it protects him or her from making a mistake and owning a new mortgage on a property that will not allow him or her to service the debt long-term with its rental income potential. Appraisals are the last step in the application and underwriting process. They are conducted only after the borrower is approved and the estimate of cost has been accepted by the borrower. Lima One Capital makes no money off of the appraisals and the potential borrower pays our approved appraisers directly.
What are the general requirements for borrower approval?
For a rental loan process and list of required documentation click here.
Can I cross-collateralize properties to lower my down payment at closing?
Yes, we provide portfolio loans and the equity in the property(ies) that you own can be used to secure additional rental properties within the context of one portfolio.
Where do you lend?
We lend in 41 states and Washington, D.C. For a full breakdown of our lending area click here.
Do you lend on commercial properties?
We lend on residential and multifamily (5+ unit residential) investment properties. We currently do not lend on commercial properties.