Why Our Rental360 Loan Program is the Best in the Country
Optionality
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:
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• Rate Structure:Pick from a 5/1 ARM, 7/1 ARM, or 30-Yr Fixed. The 5/1 ARM and 7/1 ARMs are ideal for transitional rentals, while the 30-yr fixed is a more permanent financing option.
• Origination Fee: Our standard origination fee is 1%, yet borrowers have the option to pay more or fewer points to either buy down their rates or pay less cash upfront.
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• Prepayment Penalty: A prepayment penalty is a contractual clause that states the borrower is going to pay the lender an additional fee if the borrower pays off the loan early. Our standard prepayment penalty is a 5-year structure, but if the borrower wants to pay the loan off sooner, they can opt for one of our 3-year structures.
Direct Lender
While most lenders are reselling someone else’s loan product, Visio Lending is one of very few direct lenders to rental investors. By cutting out the middlemen (yes, men!) you get a better loan product and smoother borrowing experience.
Cash Flow Based Lender
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.
