The Visio Lending Rental360 Loan Program is specifically designed for investors looking to grow their portfolios of single family (1-4 unit) rental properties. We have the most experience in the industry and have the customization investors need for their investment strategies. Rental360 investors can choose their:
While most lenders are reselling someone else’s loan product, Visio Lending is one of the very few direct lenders to rental investors. By cutting out the middlemen (yes, men!) you get a better loan product and smoother borrowing experience.
Visio Lending’s laser-like focus and rental loan expertise simply cannot be matched. Would you go to a foot doctor for a headache? Or an employment attorney for a divorce? There is something to be said for going to a specialist for the specialty you need.
Another clear benefit of choosing a specialized rental lender instead of financing all of your investments, such as your fix and flips, through one lender: avoiding cross-default provisions. Essentially, through a cross-default provision, if a borrower fails to pay interest or principal on time for one loan, the lender has the right to default the borrower on all of their loans. Fix and flips are risky investments even for the best lenders, so it is always good practice to keep your rentals elsewhere.
Rather than look at the personal income of our investors, Visio looks at the monthly cash flow generated by the property compared to the debt. We do this using a metric called Debt-Service Coverage Ratio (DSCR). DSCR is calculated by dividing the monthly rent by the monthly principal, interest, taxes, insurance and association dues (PITIA). A DSCR of 1 indicates the investor is breaking even, and anything above a 1.2 is considered solid. Many investors that own multiple mortgaged rental properties have too much “debt” to qualify for traditional financing, so using DSCR rather than DTI enables them to acquire more rentals.