American Financial Lending FAQ
Mortgages can be tricky if you're new to the game. There are so many options and terms available, it can be hard to decide which one is right for you. And even once you've decided on a loan, there's still the matter of getting approved.
American Financial Lending offers a variety of loan programs designed for residential real estate investors. These include:
- Fix and Flip Loans: Short-term loans for investors who want to purchase, renovate, and quickly resell properties for a profit.
- Rental Loans: Long-term financing specifically for purchasing or refinancing rental properties.
- Cash Out Refinance: Allows homeowners to access their home equity by refinancing their existing mortgage for a larger amount.
- Bridge Loans: Short-term financing used to quickly secure a property or cover a gap in funding.
- Ground Up Construction Loans: For building new properties from scratch.
- Portfolio Loans: Designed for investors with multiple rental properties. These loans typically use Debt Service Coverage Ratio (DSCR) to assess qualification, focusing on the property's cash flow rather than the borrower's personal income.
- Owner Occupied Primary Home Loans: Super Jumbo, Conventional, FHA, VA, Bank Statement programs, asset depletion (you liquid assets will count as income). Purchase, refinance or cash out.
To be eligible for a Fix & Flip loan, rehabbers generally need:
- A minimum credit score of 640 with no derogatory credit history within the past two years.
- The ability to provide a down payment, cover closing costs, and demonstrate 1-3 months of reserves.
- The property must be located in a metropolitan statistical area with a population greater than 50,000.
- The property should have an as-is value of at least $150,000 and be a single-family home, 2-4 unit property, condo, townhouse, or multi-family property with up to 200+ units.
To be eligible for a Rental Loan, borrowers typically need:
- A minimum credit score of 620 for purchase, with no derogatory credit history within the past two years, 660 score for cash out.
- The ability to provide a down payment, cover closing costs, and demonstrate 6 months of reserves.
- The property must be located in a metropolitan statistical area with a population greater than 50,000.
- The property should have an as-is value of at least $150,000 and be a single-family home, condo, townhouse, or a multi-family property with 2-10 units.
- The property must demonstrate a minimum DSCR of 1:1 (lower ratios may be considered with certain restrictions).
- Fix & Flip Loans: Loan terms range from 12-24 months.
- Rental Loans: Loan terms are available for 30 or 40 years.
- Fix & Flip Loans: $150,000 - 10 million.
- Rental Loans: $150,000- 8 million.
For Fix & Flip loans, American Financial Lending offers up to 90% LTV based on the loan to cost, or up to 75% of the after-repaired value of the completed rehab.
For Rental loans, the maximum LTV is 80% for purchases and rate and term refinances. For cash-out refinances, the maximum LTV is 75%. Exceptions if the DSCR ratio is below 1.0 we offer no ratio loans which will decrease the loan to value and effect the rate.
To qualify for a Rental Loan, borrowers generally need:
- An LLC or corporation to own the property.
- A credit score of 620 or higher.
- Cash reserves for loan payments.
- A 20%-30% down payment.
- A property with rental income potential.
For rehab or rental loans, borrowers are typically required to have the property owned under an LLC or corporation.
- You can reach American Financial Lending by:
- Phone: 805-419-9097
- Email:
- Filling out the contact form on their website: [americanfinancialending.com]