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Build-For-Rent Construction Is Growing

According to the National Association of Home Builder’s (NAHB) analysis of the Census Bureau’s Quarterly Starts and Completions by Purpose and Design data there were around 21,000 single-family built-for-rent starts during Q2 of 2022 – a 91% gain over Q2 2021. In fact, over the last four quarters, 69,000 homes were in new build-for-rent construction accounting for a 60% increase over new single family starts in the prior four quarters, according to Robert Dietz, chief economist at NAHB. This is due to challenges over housing affordability and down payment requirements that some borrowers still can’t meet. The demand for rentals is still a strong and growing market.

Why is this important to you? Because it might be important to your real estate investors! Share the data with your real estate investors as the numbers confirm the demand for rental housing. Then let them know you have the right loan to get their properties closed quickly. Our Investor Cash Flow loan is a no income loan that qualifies on the cash flow of the property.

Investor Cash Flow (DSCR) Highlights:

  • Credit Scores starting at 640 Qualification based on the property’s cash flow with minimum DSCR of 1.0
  • DSCR .85 to .99 Max LTV 80% with minimum 700 FICO
  • DSCR below .85 (No DSCR) Max LTV 75% with minimum 700 FICO
  • Short-term rentals and VRBOs ok – no Condotels/Condo Hotels
  • No limit on total number of properties borrower may own
  • Non-warrantable condos allowed
  • Title can vest in an LLC

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