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Rental Properties and Hard Loans FAQ

Note: originally posted on LendingHome.com and LendingHome is now Kiavi.

Kiavi’s goal is to ensure that getting financing is the easy part of your real estate investment projects. Please read answers below to some of our most frequently asked questions about the Kiavi Rental Program to help you move forward in the process.

Rental properties and hard loans FAQ

What is the benefit of obtaining a loan from Kiavi versus a conventional bank?

The benefits include some of the following:

  • Unlike a traditional lender, Kiavi does not require income documentation such as W-2 and tax returns. As such, there is No minimum required debt to income ratio (DTI) to qualify for a loan.
  • We perform soft inquiry credit pulls. Soft inquiries do not show up your credit report and will not affect your credit score. We do not have a cap on the number of rental loans a borrower can take out. With traditional mortgage lenders, you are typically capped at a maximum of 10 loans including your primary residence.
  • We do not require asset documentation and there is no minimum reserve requirements.

What documents does Kiavi require to originate a rental loan?
Similar to our bridge loans, rental loans require entity document review and a lease agreement (if available).

What do I need to do to qualify for a rental loan?
You need to meet our FICO requirement.

What is a DSCR?
The Debt Service Coverage Ratio (DSCR) measures the ability to pay the property’s monthly mortgage payments from the cash generated from renting the property. Lenders use this ratio as a guide to understand whether the property will generate enough money to pay rental expenses and the mortgage. The higher the debt service ratio the better. A debt service ratio of 1.25, means the property generates 1.25 times more in cash than is required to pay the total property expenses–principal, interest, taxes, insurance, association dues (if applicable), or PITIA.

What are your DSCR requirements?
Kiavi’s minimum DSCR is typically 1.0, however this may vary by product. Please contact our sales team at for more information.

How does Kiavi determine rental income for the DSCR calculation?

DSCR is calculated as the lower of one of the following: 10% of rent from form 1007 on appraisal, or, rent from a signed lease agreement.

What is your rate lock process?
A rate lock is an agreement between a borrower and a lender that allows the borrower to lock in the interest rate for a specified period of time. For the rental product, Kiavi typically has a 60-day rate lock period.

What is PITIA?
Principal, interest, taxes, insurance, and association fees. This is the borrowers monthly obligation for property.

What is Kiavi’s appraisal process?
An appraisal is required prior to close.

What are your minimum and maximum loan amounts?

  • Minimum loan amount = $75,000
  • Maximum loan amount = $2,000,000
  • Maximum Cashout = $500,000

These amounts are subject to change. Please contact our sales team for the most up to date information.

Is there a minimum seasoning requirement for cash-out?
Yes, a six months seasoning is required. Most institutional lenders require a minimum of 12 months seasoning.

What are your fees?
Our service fee is $999. Additionally, the cost of a full appraisal which is paid by the borrower is also required.

What is an Impound Account?
An impound account (aka escrow account) is an account maintained by the lender to collect insurance and tax payments on a monthly basis.


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The above is provided as a convenience and for informational purposes only; it does not constitute an endorsement or an approval by Kiavi of any of the products, services or opinions of the corporation or organization or individual. The information provided does not, and is not intended to, constitute legal, tax, or investment advice. Kiavi bears no responsibility for the accuracy, legality, or content of any external content sources.