Rental Home Financing

About Rental Home Financing

Rental Home Financing is a private money lender headquartered in Indianapolis, IN offering funding in 26 states across the country. They provide lending solutions for a variety of scenarios, including refinancing, fix-and-flip loans, and loans for investments properties. Their loan parameters are versatile, including loan amounts starting from $75,000 with a maximum LTV of 75%, rates starting at 6.5% , and terms between 5 years and 10 years. They require a minimum FICO rating of 620 to receive a loan. The focus of their loans is on single family units and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family, Multi Family

Areas Served: AL, CA, CT, DC, DE, FL, GA, IL, IN, ND, MN, NC, NJ, NV, NY, OH, OR, PA, SC, TN, TX, VA, VT, WA, WI, UT

Lending Guidelines for Rental Home Financing

Below are the general loan guidelines published on the Rental Home Financing website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Rental Home Financing.

Loan Example 1

Dwayne finds a townhouse in Houston, TX to rehab and resell. Since he does not have enough cash to purchase the $350,000 project outright, he takes out a private money loan from Rental Home Financing. The terms of the deal include a 55% loan-to-value (LTV), so he must bring 45% of the price as cash at closing, which makes the principle loan amount $192,500. The note is interest only, paid monthly, and is for 12 months at 12% interest with 1 points to be paid when the deal closes.

Therefore, Dwayne will be required to contribute a $157,500 down payment in addition to paying a $1,925 origination fee. The monthly interest only payments will then be $1,925 to Rental Home Financing. Assuming he sells the rehabed house for $437,500 at the end of the 12 month term, his total profit (not accounting for rehab expenses) would be $62,475. This is calculated by taking the purchase price ($437,500) and subtracting the original principle ($192,500), the origination fee ($1,925), the funds he brought to closing ($157,500), and the total interest payments ($23,100).

Loan Example 2

Philip takes a private money loan from Rental Home Financing so he can rehab a house to flip in Houston, TX. The loan has the following parameters:

$370,000 sales price
65% loan to value (LTV)
12 month term
12% interest rate
3% origination fee

Philip plans to list the property at the end of the term for $444,000. If he succeeds, the final numbers will be as follows:

$444,000 sales price
- $240,500 loan principle (65% LTV)
- $129,500 cash paid at closing (35% on 65% LTV)
- $7,215 origination fee (3% of the $240,500 principle)
- $28,860 interest payments (12 months x 12% interest)
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= $37,925 gross profit (doesn't include taxes or renovation costs)

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