LoanBase recently arranged the financing on a single-family rental in Albrightsville, PA. Our client was seeking a non-recourse loan with 80% LTV for a property located in a tertiary market, making it a challenging loan to secure.
In a tertiary real estate market – sometimes known as an emerging real estate market – borrowers struggle to find lenders who will consider a 75% or greater loan-to-value loan.
Despite these challenges, LoanBase was able to find a lender comfortable with the property and terms of the loan.
Because it was a non-recourse loan, finding a lender who would underwrite based on DSCR was instrumental. A DSCR loan allows a borrower to finance their commercial or multifamily property by using the property’s future cash flow to qualify for the loan.