term rental financing for stabilized properties, CIVIC offers a higher cash-out leverage than even the conventional market. Investors refinancing with Fannie or Freddie are capped at 75% loan-to-value (LTV), while CIVIC can go up to 80% LTV with a solid 1.00 debt service coverage ratio (DSCR) requirement. A SIMPLIFIED PROCESS: Compared to conventional lending, CIVIC’s qualification criteria includes far less documentation, stated income and assets in lieu of tax returns and pay stubs, and a FICO minimum of 600+ compared to the traditional 700+ range for conventional. NO LIMITS: There is no cap on how many rental loans CIVIC can do for a borrower. Conventional lending uses debt-to-income ratios, so you’re only allowed to have so many mortgages. CIVIC provides limitless opportunities for both refinancing a big rental portfolio and acquiring more properties to add to it. TENANTS OPTIONAL: With CIVIC’s rental financing, properties are NOT required to be currently leased at the time of acquisition or refinance. Local market reports can be used to confirm projected monthly rental income. Also, there may be purchases where tenants are already in place... no problem. The tenants stay, and the current lease agreement gets transferred. Lending by way of 5/1, 7/1 and 10/1 ARMs to various property types, including single-family homes, 2-4 units, condos, PUDs and townhomes, CIVIC rental financing gives you the ability to thrive in the long-term rental game. SOURCING DONE RIGHT The market is on fire, but it’s so on fire that most investors are getting into competing offer situations for properties that are listed. To cut through the noise and have a fair chance at acquiring new properties, it’s key for investors when diversifying to deploy an off-market strategy.
CASH IS KING: Refinancing with cash-out options gives you the power of cash to go acquire another property. In many regions the markets are so competitive that if you don’t have a cash offer, your offer is automatically out. Today’s sellers don’t want to wait on any contingencies or financing, so cash offers will get you in the game and help you win the deal. A PORTFOLIO MAKEOVER: Experienced investors are taking advantage of today’s low rates to refinance their entire portfolios with lenders such as Civic Financial Services. CIVIC can cross up to 10 properties under one single loan (with no limit of loans), and offers up to 80% cash-out. SEIZE THE MOMENT: Do you have loans maturing on properties you now want to hold on to? Did you take out a hard money loan for a purchase or rehab at a high interest rate? This may be the prime time to refinance – tapping into the equity and reducing your monthly payment. Whatever size your portfolio may be, if your properties have accrued some healthy equity, a refinance or cross- collateralization is a great opportunity to recapitalize and continue to grow your real estate wealth. STRATEGY #4: RENTAL According to ATTOM Data Solutions’ 2021 Rental Affordability Report, renting is more affordable than buying in 18 of the nation’s 25 most populated counties. So what does this mean for investors? A serious cashflow opportunity. With the right product in your rental strategy, such as a CIVIC’s long-term interest-only loan, cashflow is even higher when it comes to your rental income because you’re not paying principal. And, if you’re like many investors wanting to combine the forces of refinancing and rental strategies, CIVIC helps with exactly that. Consider this:
Tactics can vary from attending auctions, sourcing foreclosures, or even canvasing neighborhoods where
DO THE MATH: With rates starting at just 4.75% for long-
4.75%+ DSCR REQUIREMENT: PREPAYMENT PENALTY: INTEREST RATE: LOAN PROGRAM: RENTAL LOAN PROGRAM [RESIDENTIAL] 3% - 2% - 1% 5/1 ARM 1.00
7/1 ARM 4.99%+
10/1 ARM
5.25%+ 1.00
1.00
5% - 4% - 3% - 2% - 1%
4% - 3% - 2% - 1%
4 : : COMMERC IAL REV I EW
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