We believe in transparency. Here are the most common questions about our real estate and business loans, approval process, and borrower requirements.
Minimum credit scores are 660 for most bridge & DSCR products. 660-680 for Construction products
Close in as little as 8-10 days for bridge or flix and flip loans. DSCR and new construction may take longer dependent on deal details
Hard & private money loans do not encumber your personal credit or impact DTI, the same as a conventional or primary home loan do. We do not look into w2, verify income, or tax returns– but rather we focus on the underlying asset.
Yes, we do offer refinance loans on turnkey rent-ready properties as well as pre- or mid-construction properties. Our products include cash-out refinancing, rate & term refinancing, and even bridge-to-bridge refinancing with or without construction funds. Maximum LTV is 75-85%.
Yes, we lend on manufactured/mobile homes on a case-by-case basis. We require that the property is fixed to a foundation & has been fully de-titled, with proof that the title is retired with the DMV.
Typical borrower criteria is 660+ minimum credit requirement for bridge loans & 680+ for rental DSCR loans. We require borrowers have no recent delinquency, bankruptcies, or derogatory marks on their credit in order to proceed. For Construction, underwriting is based on both borrower credit, experience and liquidity as well as the inherent deal
Our loans do require a personal guaranty, however, none of our products encumber personal credit. Since our loans are commercial loans in nature, they can sit on your entity/LLC and do not report to credit bureaus in a manner that impacts personal credit score. We may require a hard inquiry, which can pose minor impact to credit score.
Most of our DSCR loans require 3-Month seasoning. However, if you are to verify that work was recently completed we may be able to offer loans with no seasoning requirement at all.
Give us a call today to request a Pre-qualification letter
There are no income requirements. Loans typically will require proof of liquidity, which is to be determined by overall loan amount & structure.
Yes! We can underwrite vacant rental properties to the appraisal’s 1007 market rent, or we can underwrite against AirDNA data if the property is being used as a short-term rental.
Minimum credit scores are 660 for most bridge & DSCR products. 660-680 for Construction products
DSCR is the ratio of rental income to the monthly mortgage payment. This is usually calculated as (Rental Income) / (PITI) *Principal, Interest, Taxes, Insurance*
LTV is a ratio that demonstrates the percentage of the As-Is Value of the property that any given product can lend up to. This is calculated as (Total Loan Amount) / (As-Is Value).
At loan maturity, the outstanding balance of a loan is due in full. It is best to sell, refinance, or request a loan extension prior to maturity of any loan.
Absolutely! We can offer cash out or rate & term stabilized bridge refinancing to rent ready properties, with no DSCR underwrite. This allows you to free up capital and evade upcoming maturity dates while you wait for your assets to sell.
No! Stabilized bridge loans do not require a DSCR underwrite, so, your property does not need to cashflow at desired leverage.
Our ground-up construction loans provide funds in stages, ensuring that money is allocated efficiently as your project progresses.
Example: If you’ve completed foundation and framing, you can request a draw for all of it at once. Or, if you just finished painting, you can get a small draw just for that. You stay in control of your financing.
No. You can take as many or as few draws as needed.
Once your new construction property is rent-ready, reach back out, and we can review possible rental refinance options!
At Black Swan Lending, we’re able to make exceptions for construction and rehab projects by qualifying your experience based on the licensed General Contractor (GC) overseeing the work. To do so, have a conversation with your GC to prepare the following required documents: GC Completion Guarantee, and Assignment of Contracts
We can approve GCs for ground up construction with 3x permits pulled of any kind.
Detailed Scope of Work
No, experience is NOT required to obtain financing on a fix and flip project. However, experience may assist in obtaining more competitive interest rates or leverage options.
Instead of verifying the borrower’s W-2s, tax returns, or pay stubs, lenders use the DSCR to evaluate whether the property’s rental income can cover its debt obligations.
Yes. You must have relevant experience or have a project sponsor who is able to bring experience to the general partnership team.
Yes, you cannot qualify for any commercial loan without experience or without having a project sponsor who is able to bring experience to the general partnership team.
Any 5+ unit apartment units, mix-use properties, industrial, retail, office space, etc. are considered to be commercial properties.
We have loan options for both permanent financing with lower interest rates for stabilized properties, as well as bridge financing for properties that might need some work or a management overhaul before being fully stabilized.
