Hard Money Rental Loans

Yes, for both refinances and new purchases New Silver can provide financing for short term rentals.

Yes, a full appraisal from an approved Appraisal Management Company with interior access and market rent addendum is required.

For the rental program, New Silver has a minimum loan amount of $100k and as-is value of $100k.

Typically there is a 5-4-3-2-1 step down prepayment penalty. In this scenario, the borrower is responsible for paying a penalty of 5% of the outstanding balance if prepaying in the first year, 4% in the second year, 3% in the third year, 2% in the fourth year and 1% in the fifth year.  The borrower will have the option to decrease the prepayment penalty with an increase in the interest rate.

In short, No. New Silver can now offer loans without a minimum DSCR, however, the most favorable terms are available for loans with a DSCR of at least 1. Debt service coverage is calculated as the lesser of market rent and rent in place divided by property taxes, insurance, debt service, and HOA/COA (if applicable).

You need to be a US citizen or legal resident.

Yes. You can apply for a Rent loan and indicate the market rent, and even if DSCR is below 1, you may qualify for a loan for your short term rental property.