Jcap Rolls Out 30 Year Rental Loan

Jcap Private Lending is pleased to announce their new loan product for rental properties nationwide. With rates starting in the low 4’s, LTV’s as high as 80%, and an underwriting process based on DSCR, the California-based, direct hard money lender is poised to help mortgage brokers and single family investors at a nationwide scale. 

This particular loan product is designed specifically for Non-Owner Occupied Residential Properties. The eligible property types include Single Unit Homes, 2-4 Unit Residences, Townhomes, Condos, and a combination of those as a portfolio. Jcap underwrites the loan based on the guarantor’s middle FICO score as well as the properties’ DSCR. These simple underwriting requirements in combination with a boutique lender process built on speed, catalyzes into the most efficient long-term loan product in the market today. 

SPECIFICS

Jcap builds their loan products for the wholesale market. Therefore this product is offered at par pricing to mortgage brokers. They have their guidelines set to a maximum loan amount of $2,000,000 for Single Unit properties, $3,000,000 for 2-4 Unit properties, and $6,250,000 for Blanket / Cross Collateralized loans. They offer flexible amortization options which include up to 60 Months of Interest-Only payments and 5/1, 7/1, and 10/1 ARM’s. Prepayment Penalties start at 36 months but can be adjusted in 12 month increments to a maximum of 60 Months or eliminate it altogether. DSCR is calculated as the “Monthly Property Gross Rent” divided by the “Monthly Qualifying Payment”. Notice, it is calculated by “Monthly Qualifying Payment” which means that the IO options can be used to help boost that initial DSCR to qualify! Lastly, they will fund this loan product as Purchase, Rate/Term Refinance, or Cash-Out Refinance transactions. 

KEYS TO SUCCESS

Naturally, as a mortgage originator, you’re asking yourself “How do I know if my scenario has a high probability of closing?” Mortgage Broker’s should make sure their scenario meets the following criteria:

• Guarantor’s middle FICO score 650 or higher 
• Property is in a major metropolitan area (no rural properties) 
• DSCR over 1.10 
• The borrower / borrowing entity is well capitalized (6 Months Debt Service Payments in reserves) 

If the potential loan checks all the boxes, then it has a high chance of closing. To get in contact with the team at Jcap, call Paul Wirth at 714.943.7886 or email Paul@jcap.net to get set up and funding loans right away.