Who it is for
Investors evaluating a rental program outside conventional credit boxes. A low published entry screen is a reason to discuss the file, rather than evidence that payment history, equity or current obligations will be ignored. This option spans smaller rentals and eligible properties up to 25 units. Its location in this hub does not remove smaller-property eligibility; confirm the appropriate lane for your unit count.
Ideal properties and transactions
A rental acquisition or refinance with a supportable property story and an explainable credit history. Present resolved events separately from current delinquencies, and document how the proposed payment will be supported alongside existing debt.
Credit, experience and liquidity
The flyer lists $3.5 million loan capacity, an indicated credit screen of 550 and eligibility for properties up to 25 units. It states no minimum DSCR below $1 million. Leverage is tailored; the flyer does not extend that ratio statement to loans of $1 million or more. Discuss your ownership and management history and cash remaining after closing. The flyer does not establish a universal experience or reserve requirement. Prepare a closing-funds reconciliation that separates the down payment, transaction costs, required reserves and your own operating cushion. Explain any partner capital or borrowed funds and the other properties supported by the same liquidity. Ask which funds must be verified before closing and which must remain available afterward.
Leverage and valuation framework
LTV compares the proposed loan with the lender’s accepted property value. A purchase, rate-and-term refinance and cash-out transaction can have different limits. Ask which value basis and seasoning rule apply; improvements or an anticipated appraisal do not automatically increase eligible proceeds. Cash to close also includes fees, escrows and any required reserves. For a refinance, subtract existing liens and closing costs to estimate net proceeds. Keep headline capacity, credit screens and maximum leverage separate: the approved combination depends on the entire file.
Rental income and coverage
Even in the stated no-minimum-DSCR segment, prepare a rent roll and actual operating expenses. For larger requests, obtain the applicable coverage requirement. Do not combine the lowest indicated score, largest loan and most flexible ratio into a guaranteed package.
Loan structure, repairs and closing
Confirm the property condition required at closing and whether any repair escrow is permitted. Renovation funding and repair escrows require review under the selected loan structure. If substantial work or lease-up is needed, ask whether separate renovation or bridge financing must precede a rental takeout; a later refinance requires its own approval. Request the rate structure, amortization, maturity, any interest-only period, escrow treatment and prepayment provisions together. Compare total ownership cost and the payment after any reset, not only the initial monthly payment.
Property and location considerations
Flag unit count, building condition, vacancy and local rental demand early. Larger apartment properties require more operating detail than a single rental house, and the source does not establish universal eligibility for every property below the unit limit.
Holding period, exits and stress tests
Set a holding period and compare the loan term, prepayment schedule and any planned sale or refinance. Model lower rent, higher insurance or taxes, a vacancy and a major repair. For illustration only, $2,500 qualifying monthly rent divided by $2,000 qualifying debt expense gives 1.25 coverage; the lender’s actual formula and accepted income may differ. This simplified ratio is not net operating profit. A future refinance depends on then-current value, income and program eligibility and is not guaranteed.
Documentation to prepare
Start with the address, legal unit count, transaction purpose, purchase price or estimated value, requested loan amount, monthly rent and current occupancy. Add the purchase contract or existing debt information, leases and rent roll, operating history, insurance and tax figures, ownership/entity records and evidence of available funds. Explain any unusual property use, lease-up, credit event or closing deadline. Provide account statements and identity information through the secure process Karpata specifies rather than in a public inquiry. A complete first package makes it easier to identify the correct lane. Prepare a factual explanation of credit events, supporting resolutions, current debt and available reserves. Include a complete property income package and ask which tier applies to your credit profile and requested balance.
Limitations and questions to resolve
All published screens remain subject to borrower, property and program approval and may not apply together. Confirm current state availability, eligible loan purpose, pricing, fees, reserves, guarantees and conditions in a written quote. No minimum DSCR does not mean no underwriting. A business-purpose investment loan is not a consumer home mortgage. Confirm any requirement not specified here before committing funds or relying on a closing date. Final approved documents govern the transaction.
Based on the supplied individual Karpata program flyer. Published flyer screens are identified in the guide; current terms require confirmation. Property images are AI-generated and illustrative.