Frequently Asked Questions

Here you’ll find the questions pertaining to our loan products that we receive most frequently. To view an answer, just click on the question and the answer will appear below.

General

What is a fix-and-flip loan?

A fix-and-flip loan is a short-term mortgage used to acquire a property quickly. Generally this financing is used until permanent financing is found, the home is resold, or it is rehabilitated and then resold.

Who needs a fix-and-flip loan?

Property investors that are fixing and flipping properties are the most common customers of LendingOne fix-and-flip loans. Anyone buying properties on market or in distress, rehabbing, and reselling is a potential customer for us.

Do you fund the repair costs?

Yes, we specialize in fix-and-flip lending that includes Repair Costs. We will lend up to 90% of the purchase price and up to 90% of the rehab costs or up to 65% of the after repair value. The repairs are handled via construction draws.

How are construction draws handled?

Our borrowers request a draw. Within 48 hours, one of our licensed contractors inspects the work completed. Within 24 hours after the inspection, the funds are released. There is a $150 charge for each draw that is deducted from the draw amount. We don’t make any money on construction draws. The cost of the draws go directly to our contractors to ensure that the work is done properly and within code.

What is a rental loan?

A Rental Loan is a medium to long term loan for income-producing rental investment properties. It is underwritten primarily against the property value and the cash flow of the property itself, with less emphasis put on traditional credit factors.

Who needs a rental loan?

This loan is tailored towards both small and larger operators who have one or more rental properties that are successfully producing cash flows sufficient to pay a mortgage. We offer both purchase and refinancing options.

How much documentation do I need to provide?

Depending on the loan, we collect different documents. Our systems may ask for documentation not applicable to you, in which case you do not need to provide us that information. However, in general, the more information you can provide, the more opportunities exist for us to uncover the right financing program for your situation.

How does your pre-qualification process work?

Our pre-qualification process allows you to quickly gauge how much funding you are eligible to receive for your real estate investment project. We will require you, either through our online application or on the phone with one of our loan consultants, to provide the following information:
Your experience in real estate investing. (how many deals have you done, rental vs fix-n-flips?)
Total amount of money available to invest in your real estate projects.
Your overall credit profile.
Your total income.

Can I schedule a call with a loan consultant?

Yes, you can schedule a call with one of our loan consultants through Here, or you can call us at our toll-free number 866-782-3464 to quickly gauge how much funding you are eligible to receive for your real estate investment project. We will require you, either through our online application or on the phone with one of our loan consultants, to provide the following information:

Your experience in real estate investing. (how many deals have you done, rental vs fix-n-flips?)
Total amount of money available to invest in your real estate projects.
Your overall credit profile.
Your total income.

Do you have a minimum FICO score?

Our typical loan requires a 620 FICO minimum score; however, our borrower’s credit score is only one of many factors taken into consideration when underwriting the loan.

How to make payments?

We contract with FCI Lender Services to service and accept payments for your loan. You will receive a full welcome package with instructions directly from FCI within 2-3 weeks of closing. Your payment will be due on the 1st of the month and the automatic Automated Payments (ACH) form from FCI should be completed. FCI Lender Services 8180 East Kaiser Blvd Anaheim Hills, California 92808 Toll Free (800) 931-2424 Fax (714) 282-2425

How do I payoff my loan?

To request a payoff, please request directly from our servicer, FCI Lender Services. Please have your recent statement or Account # to provide to FCI. We are sorry, but LendingOne cannot process a payoff directly because the servicer maintains your daily account balance and year-end interest tax reporting. payoff-ls@trustfci.com Payoff Department FCI Lender Services, Inc. Phone: (800) 931-2424 Ext.651

How do you determine the loan amount?

LendingOne will lend up to 65% of the ARV (After Repair Value) as determined by an appraisal or the LTC limit. LendingOne offers financing from 75% to 90% of the purchase price and repairs costs *

What states does LendingOne currently lend in?

LendingOne provides lending in all States and District of Columbia except Alaska, Arizona, Hawaii, Nevada, North Dakota, Oregon, South Dakota, Utah, and Vermont. 

Rental Loans

What type of rental loan rates are offered by LendingOne?

LendingOne offers both a fixed 30 year rate starting at 6.49%* and hybrid adjustable rate mortgage, 3/1, 5/1 and 7/1, starting at 5.89%. All rates are based on individual property and borrower.  Call us to learn more.

What type of properties are eligible for rental loans offered by LendingOne?

The following property types are eligible for our rental loans:

  • Single Family Residence (SFR)
  • 2-4 Unit Properties (LTV cannot exceed 70%)
  • PUDs
  • Warrantable condos must meet Fannie Mae warrantability requirements (LTV cannot exceed 70%)
  • Townhouse
  • 10 acres maximum
  • Non-warrantable condominiums not allowed

What is the minimum and maximum loan amounts for rental loans offered by LendingOne?

LendingOne rental loans have a minimum loan amount of $60K and a maximum loan amount up to $2M.  A borrower can have no more than $3M worth of loan amount and no more than 6 properties.

 

What is the minimum FICO score for LendingOne's rental loans?

LendingOne’s rental loan FICO score minimum is 620.  Tri-merged credit report is required for all personal guarantors and determined as follows:

  • If 2 credit bureau scores are reported, the representative score is the lower score; and
  • If 3 credit bureau scores are reported, the representative score is the middle score.
  • Foreign Nationals without an ITN are not subject to FICO requirements

What type of documentation is required for LendingOne's rental loans?

LendingOne requires the following documentation from borrowers interested in our rental loans:

  • LendingOne’s online application, completed by borrower
  • Most recent two months bank statements or the most recent quarterly statement
  • A list of properties you currently own (a REO Schedule)
  • No Tax Returns Required
  • Lease(s) – (if currently rented)
  • Certification of Business Purpose/Non-Owner Occupied Affidavit
  • Sales Contract (on purchase)
  • LLC Operating Agreement or Articles of Corporations
  • Driver’s License

Other documents and/or materials may be requested based on the individual borrower’s circumstances and collateral.

Who is eligible for our rental loans?

Our rental loans are available to the following borrowers:

  • U.S. Citizens
  • Permanent Resident Aliens
  • Non-permanent Resident Aliens
  • Foreign Nationals
  • LLCs, Limited Partnerships, General Partnerships, Corporations

What is Debt Service Coverage Ratio?

Debt Service Coverage Ratio (DSCR) is a calculation that helps us determine if a rental investment is generating enough income to make its loan payment obligations.

DSCR is calculated by the following simple formula:

DSCR = Monthly Gross Income
PITIA*

*Principal, Interest, Taxes, Insurance and Association Fees. 

What are the cash out eligibility and restrictions?

The cash out eligibility and restrictions are the following:

  • Six months since prior financing or date of purchase is required.
  • Delayed Financing Exception per FNMA permitted and prior fix-and-flip loans with LendingOne qualify.
  • Loans not eligible for cash-out: Properties listed for sale by the borrower in the past three months.

Does my rental property have to be leased before closing?

The following are the lease requirements:

  • An executed lease with no less than 3 months remaining at time of close
  • Unleased properties the gross rents indicated on the 1007 may be used
  • Gross income is the lower of actual rents and market rent as indicated on Form 1007

Can I live in one of my rental properties or rent it to a family member?

No.  LendingOne provides commercial only loans that are non-owner occupied (investment) properties.

Is there a prepayment penalty?

Prepayment penalty conditions are as follow:

  • Term: 3 Years
  • Type: 80% of 6 months interest
  • There are buy down options, please call us to learn more.

Fix-And-Flip Loans

What type of fix-and-flip loan rates are offered by LendingOne?

LendingOne offers fix-and-flip loan rates between 7.19%-13.9%. All rates are based on the individual property and borrower.  Call us to learn more.

What type of properties are eligible for fix-and-flip loans offered by LendingOne?

The following property types are eligible for our fix-and-flip loans:

  • Single Family Residence (SFR)
  • 2-4 Unit Properties
  • Condominiums
  • Townhouses

What is the minimum and maximum loan amounts for fix and flip loans offered by LendingOne?

LendingOne fix-and-flip loans have a minimum loan amount of $75K* and a maximum loan amount up to $2M (Exceptions Granted).

What is the minimum FICO score for LendingOne's fix-and-flip loans?

LendingOne’s fix-and-flip loan FICO score minimum is 600 for a Core fix-and-flip, and 680 for Prime.

What type of documentation is required for LendingOne's fix-and-flip loans?

LendingOne requires the following documentation from borrowers interested in our rental loans:

  • Online application completed by borrower
  • Most recent two months bank statements
  • A list of properties you currently own (a REO Schedule)
  • Last two year’s tax returns required
  • Sales Contract (on purchase)
  • LLC Operating Agreement or Articles of Corporations
  • Driver’s License
  • Certification of Business Purpose/Non-Owner Occupied Affidavit

Other documents and/or materials may be requested based on the individual borrower’s circumstances and collateral.

Who is eligible for our fix-and-flip loans?

Our fix-and-flip loans are available to the following borrowers:

  • U.S. Citizens
  • Canadian Citizens
  • Permanent Resident Aliens
  • LLCs, Limited Partnerships, General Partnerships, Corporations

Can I receive financing for a residence that I'm looking to live in?

No.  LendingOne provides commercial only loans that are non-owner occupied (investment) properties.

Is there a prepayment penalty?

No, there is no prepayment penalty on our 12-month fix-and-flip loans.