FLEX Loan Programs – Investment Property Financing

NON-CONFORMING LOANS

NON-CONFORMING
(Long-Term)
Max
LTV
Loan Limits
 Multifamily 80% $100k - $50MM+
 1-4 Units 80% $100k - $50MM+
 Office 75% $100k - $50MM+
 Retail 75% $100k - $50MM+
 Industrial 75% $100k - $50MM+
5 to 30-Year Fixed terms. Single-asset & portfolio loans for stabilized investment properties that just miss conforming underwriting requirements. Owner-user available on commercial. FLEX loans are non-conforming loans offering 30-year amortization with a prepayment penalty. Underwriting guidelines are more flexible, providing long-term financing for borrowers and/or properties that aren't ready for institutional financing. Rates and LTV limits are FICO score based. Close in 30 to 45 days.  ICS FLEX Loans are non-conforming finance products funded through our private lender partnerships.

PURPROSE

Non-Conforming FLEX Loans are recommended for borrowers intending to hold the property for 5 or more years before selling or refinancing. Income producing properties must be performing at a DSCR of 1.1x or more. These loans have less strict underwriting guidelines than institutional-grade conforming loans, offering competitive market rates for qualified properties and borrowers that just miss conforming guidelines.


RECOURSE

Recourse and Non-Recourse options available.


PREPAYMENT PENALTY

All FLEX Loans have a prepayment penalty, usually through the second to last year of the initial fixed period. Step-down and yield maintenance prepayment options are available.


LOAN LIMITS

FLEX Loans are available for 1st mortgages starting at $100k.


CLOSING

30 to 45 Days


RESERVES

6 to 9-months mortgage reserves are required.


NET WORTH

A strong schedule of real estate owned is important but not required.


LOAN TERMS & AMORTIZATION

Multifamily 5+ Units: 5, 10, and 30-year terms. 15 and 30-year amortization.

1 to 4 Units Residential: 5, 10, 15, and 30-year terms. 15 and 30-year amortization.

Office: 5 and 10-year fixed terms. 15 and 30-year amortization.

Retail: 5 and 10-year fixed terms. 15 and 30-year amortization.

Industrial / Warehouse: 5 and 10-year fixed terms. 15 and 30-year amortization.

Residential Portfolio Loan: 5, 10, and 30-year fixed terms for portfolios with 5+ properties. 15 and 30-year amortization.


FULL-TERM, BALLOON, AND HYRBID

Loans can be structured as full-term, balloon, and hybrid. Full-term loans amortize over the life of the loan, and are paid in full upon loan maturity. Balloon mortgages are fixed-rate loans with a balloon payment due at the end of the initial term. Hybrid loans have a fixed-rate for the initial fixed term, then adjust annually or semi-annually through the remaining loan term. For example, a 10-year fixed hybrid mortgage is fixed for the initial 10-years, then adjusts annually or semiannually through the remaining 30-years. A 10-year fixed balloon mortgage is fixed for the initial 10-years, with the loan balance due in full at the end of the 10-year period. A 30-year fixed mortgage is fixed for the entire 30-years, paid in full at loan maturity.

Full-Term: Higher rate providing the most security. Loan is fixed for the entire loan term.

Balloon: Lower rate than a full-term loan. Property must be refinanced or sold by the end of the term.

Hybrid: Lower rate than a full-term loan. Borrower has the benefit of a low fixed-rate loan during the initial term, can ride the adjusting rate after the initial fixed-term through loan maturity, or sell/refinance.


CREDIT SCORE REQUIREMENTS

650+


OPERATING INCOME - SEASONING

Approval and interest rates are primarily based upon the net operating income of the property and LTV. The property must show it has been operating at a net operating income over the last 3-months to support the DSCR at the proposed market interest rate. 


DOCUMENT REQUIREMENTS

  • FULL or LITE-DOC UNDERWRITING
  • Rent Roll
  • P&L / Last 12 to 24-months
  • Borrower 1003 or Personal Financial Statement
  • Schedule Real Estate Owned
  • Bank Statement(s) Verifying Down Payment/Reserves
  • Minimum 3 Quality Property Photos
  • No tax return options

Submit your loan request in 3-minutes or less. ICS provides term sheets within 24-hours, often the same day. If your loan does not meet FLEX Loan guidelines, ICS offers a full suite of non-conforming Private Loan products, as well as Bridge Financing.