At Lima One, we know the ins and outs of the rental market and offer smart, flexible loan programs that can be customized to fit your investment plan and exit strategy.
On purchase and R/T refi.
Up to 75% LTV on cash out.
Customize your loan to align with your strategy.
Get leverage on the full market value in 90 days.
Start your first rental loan with Lima One.
Choose from fixed-rate, ARM, amortizing, or interest-only structures, all available to support different hold periods and cash flow goals.
Get financing for a new rental purchase, refinance an existing loan, or pull cash out of built-up equity. Lima One offers up to 80% LTV on purchase and rate-term refinance, and up to 75% on cash-out.
Because Lima One underwrites rental loans based on the property’s cash flow and DSCR, there are no personal income or investment experience requirements for Single Family Rental loans.
Choose prepayment and rate options that fit your exit plan, or refinance from a Lima One fix-and-flip loan into a rental loan with waived seasoning if you decide to hold instead of sell.
Not every rental strategy looks the same. Whether you’re scaling into a portfolio loan or financing a vacation rental property, Lima One offers flexible lending options built to support a range of investment approaches and property goals.
Looking at a distressed property or considering a new build? Our Fix2Rent® and Build2Rent® loan programs allow you to complete construction and refinance to rental efficiently, with less cash required upfront, discounted origination fees, waived seasoning, and flexible prepayment options when it’s time to exit.
If you’re a BRRRR real estate investor looking to buy, renovate, rent, refinance, and repeat — Fix2Rent® is for you.
Whether your strategy is Build For Rent or Build for Sell, we specialize in vertical construction financing on infill, shovel-ready, fully entitled land on single builds or developments.
Solutions for Any Investment Strategy
Strategy One
Strategy One
Lima One will help you consolidate multiple properties into a portfolio rental loan that lets you manage a single mortgage payment instead of juggling multiple payments. Our portfolio rental loans make financial management easier and empower you to grow beyond the limits of traditional lending solutions.
Strategy Two
Strategy Two
Is your rental property worth more than what you currently owe on it? Leverage a cash-out refinance rental property loan and put the money back in your pocket. Then, do what you want with it — acquire another property, pay off an outstanding loan, or save for a rainy day. Your money, your call.
Strategy Three
Strategy Three
We'll finance the rehab so you can fix up the property. We follow an efficient, streamlined refinance process that is done with speed, ease, and best of all, at a much cheaper cost. As an added perk, we remove all seasoning requirements when you reposition the property from a Lima One fix-and-flip to rental loan. Win-win.
Strategy Four
Strategy Four
Whether your tenants are staying in your property for a vacation, unique experience, or work trip, we understand short term rentals have a lot of nuances. By using the latest short term rental market income data to analyze your property, we provide the best loan structure possible. Unique lending on unique strategies is our forte.
To qualify for a business-purpose loan for a rental property, an investor must hold or purchase the property in an LLC or similar entity. A loan may be used to purchase, refinance, cross-collateralize, or get cash out of a property. The leverage available on a loan will depend on the appraised value of the property, as well as the cash flow demonstrated by the property as measured by the debt service coverage ratio. The investor must also have a 660 FICO score to qualify.
Investors can contact a Lima One loan consultant to get a quote for a rental loan. If they choose to proceed with a loan application after getting the quote, the investor will need to provide documentation on the property application. An investor looking to apply for a DSCR loan for a property they already own will need to provide current leases, rent verification, and property management documentation to demonstrate the property’s cash flow. An investor looking to purchase a rental property will need to provide a purchase agreement.
Once a borrower proves adequate credit score and liquidity for a loan, Lima One will analyze the property itself for its cash flow using a debt-service coverage ratio. A property must have at least a 1.0 DSCR ratio, and properties with a 1.2 or greater DSCR will be eligible for Lima One’s lowest interest rates and highest leverage.
Lima One will request current leases and rental history for properties being refinanced to demonstrate rental income. For new purchases and vacant properties, Lima One will forecast market rents to project rental income correctly.
Investors should consult a tax professional for advice on how business-purpose loans for investment properties affect their tax filings.
Yes. Investors often refinance DSCR loans to get cash out based on the equity in their properties. Rate and term refinances are also common for loans with higher interest rates. Investors looking to refinance a DSCR loan should understand prepayment penalties with their current loan, as well as the impact of ARM or interest-only periods. They may also consider cross-collateralizing to purchase properties to add to their portfolios through a refinance.
Net operating income is calculated by taking the revenue from a property and subtracting operating expenses. The interest paid on a DSCR loan is one of these expenses. Unlike a debt-service coverage ratio, net operating income may consider capital expenses and other property repairs.
Lima One will underwrite the borrower by looking at credit score and liquidity. Lima One will underwrite the property by getting a current-value appraisal and analyzing rent history to assess cash flow. Underwriters ensure that properties qualify based on DSCR ratios and that the rents used in calculations match comparable market rents. For short-term rentals, Lima One uses slightly different criteria due to the unstable nature of Airbnb / vacation rental income.
Lima One requires three months seasoning for DSCR loans and will waive all seasoning requirements for refinances from Lima One fix and flip, new construction, or bridge loans.
Lima One will finance single-family properties, multifamily properties with up to 9 units, and warrantable condominiums with DSCR loans. Contact a loan consultant for information about other types of properties and whether they qualify.
Foreign nationals can qualify for rental loans, even if they do not have an established credit score. A Lima One loan consultant can provide more information on the borrower underwriting process for foreign nationals.
Rental Insights
