Rental property loans Chicago, IL

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LendingOne – Best Rental property loans near Chicago

LendingOne is a Illinois private money lender offering short-term mortgage loans to real estate investors in IL - AuroraChicagoJolietNapervillePeoriaRockford. Get a private money loan for a property purchase, refinance, equity cash out, rehab or new construction purchase.

Rental property loans
Rates as low as 4.99%*

LendingOne rental loans can provide the cash you need to grow your real estate investment property portfolio:

  • Competitive financing for new acquisitions of residential properties
  • Cash-Out refinances available for currently-owned investment properties

Advantages of our Rental Loans Chicago

  • All Loans 30-Year Amortization
  • 5/1, 7/1, 10/1 and 30-Year Fixed-Rate
  • Up to 80% LTV
  • Single Family 1-4 Unit Properties
  • Portfolio Loans available for 5 or more homes

Ready to get started on your Rental loan?

Get ahead of the competition in the Chicago real estate market. Speak to a Rental expert today by calling 866-918-1974

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Rental property loans near Chicago, IL

Our RentalOne loan product provides our customers a reliable source of financing through a simple and efficient online loan process. Our 30-year fixed-rate rental loan product was designed to help savvy investors capitalize on the rapidly growing rental market. With attractive rates and up to 80% loan-to-value (LTV) on fixed-rate loans, these loans are a great way to get cash out from your existing rental properties. RentalOne loans begin at $75K and up to $2 million with no personal income verification. *

What type of rental loan rates near Chicago, IL are offered by LendingOne?

LendingOne offers both fixed a 30-year rate starting at 5.49% and hybrid adjustable rate mortgage, 5/1, 7/1, and 10/1 starting at 4.99%. All rates are based on individual property and borrower.  Call us to learn more at 866-918-1974

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 80%)
  • PUDs
  • Warrantable condos must meet Fannie Mae warrantability requirements (LTV cannot exceed 70%)
  • Townhouse
  • 2 acres maximum
  • Non-warrantable condominiums not allowed
What is the minimum and maximum loan amounts for rental loans near Chicago, IL offered by LendingOne?

LendingOne rental loans have a minimum loan amount of $75K and a maximum loan amount up to $2M.

What states does LendingOne offer its rental loan products?

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

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

LendingOne’s rental loan FICO score minimum is 640.  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 near Chicago, IL?

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

  • LendingOne’s online application, completed by borrower
  • 1-month bank statements
  • 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:

  • 3-month seasoning from note date
  • Delayed Financing Exception per FNMA permitted and prior Bridge 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 near Chicago, IL?

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
  • 3, 2, 1 step-down prepayment penalty
    (3% of loan balance in first year, 2% of loan balance in second year, 1% of loan balance in third year)
 

Chicago Hard Money Real Estate Market

Foreclosure Rates for Chicago, IL

Investors who want to find deals from foreclosure properties can consider these statistics to understand the Chicago real estate market for pre-foreclosures, auctions, and bank-owned properties.

Get 5 Steps Closer To Growing Your Fix and Flip Business near Chicago

  • Advice on searching for a property to fix and flip
  • Ways to get organized before beginning
  • What to expect during the project
  • Recommendations for when you’re ready to sell
Free Download
Fix and flip tips free eBook

Sales Prices for Chicago

Real estate sales in Chicago still support an active fix/flip market. You want to closely monitor your average days on the market because when you are flipping properties, this is the best indicator of how long it will take you to sell once the property is completed.

Rental Prices for Chicago

In every market around the country where we lend, rental yields will differ. In areas where average prices are higher rental yields will almost always be lower than markets with a lower average sale price. To determine your rental investment property yield you can take the average rental rate in the chart above and divide it by the average sale price.

Driving Factors for the Chicago Real Estate Market

Education: Chicago is home to one of the highest educated workforces in the country, greatly due in part to the surrounding top ranking schools in the Chicago, IL area.
Economy: Chicago’s top employers are driving growth in the real estate market including General Hospital.
Businesses: According to the Chicago Chamber of Commerce, Leisure & Hospitality, Professional & Business Services, and Education & Health Services have seen high job and wage growth.