FirstKey, a provider of loans for investors in SFR (Single Family Rental) properties, announced it is now extending the option of a 30-year fixed rate term with no pre-payment penalty to portfolio owners seeking loans up to $5 million, with no restriction on the number of properties financed.
The flexibility of a 30-year fixed rate, pre-payable loan protects investors from balloon risk and rising interest rates while still providing them the ability to pay loans off before the end of the term with no penalty.
These benefits have not previously been available to landlords with small- to mid-sized portfolios of homes. Simultaneously, FirstKey has lowered minimum qualifying portfolio loan amounts to $150,000.
FirstKey initially launched an Express product line earlier this year with a 30- year, fixed rate loan for investors financing a single property.
The Express property loan was designed to meet the needs of entrepreneurial investors, who may have different financing priorities than institutional borrowers.
By extending these features beyond a single property loan and into its portfolio loans, FirstKey aims to make its Express product line relevant to a wider spectrum of investors. “Our enhanced Express product is unlike anything else in the market today. The enthusiastic response to the Express single property loan made it clear that term and pre-payment flexibility are often a critical feature for entrepreneurial investors who cannot always predict how their financing needs might change over time. We are proud to continue innovating for our customers,” said Randy Reiff, CEO, FirstKey Lending.
“Whether you’re a SFR entrepreneur or an institutional borrower, our product suite can provide a solution that meets your investment goals.”