FirstKey Introduces 30-Year Portfolio Loan For SFR Investors


FirstKey, which provides loans for investors in single-family rental (SFR) properties, has expanded its Express program by extending the option of a 30-year fixed-rate term with no prepayment penalty to portfolio owners seeking loans up to $5 million, and with no restriction on the number of properties financed.

The lender claims that the flexibility of a 30-year fixed-rate, prepayable 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 midsize portfolios of homes.

In addition, FirstKey has lowered minimum qualifying portfolio loan amounts to $150,000.

FirstKey launched its one-of-a-kind Express product line earlier this year with a 30-year, fixed-rate loan for investors financing a single property. These individual loans of $75,000 to $1 million per property, depending on the number of units, have no prepayment penalties.

Now, the company has extended these features beyond a single property loan to portfolio loans. The company's Express Portfolio Loans are fixed-rate loans of $150,000 to $5 million on portfolios of five or more properties with two options: five- or 10-year balloon loans or 30-year, fully amortizing loans with no payment penalties

In a release, Randy Reiff, CEO of FirstKey Lending, says, ‘The enthusiastic response to the Express single property loan made it clear that term and prepayment flexibility are often a critical feature for entrepreneurial investors who cannot always predict how their financing needs might change over time.’

FirstKey also offers its Premier Fixed-Rate Loans, which are portfolio loans of $5,000,000 to $500 million on portfolios of five or more properties. These five-, seven- and 10-year loans are fixed rate and nonrecourse.

The company's Premier Bridge Loans are loans of $10,000,000 to $500 million for up to 12 months. These bridge loans are offered at a floating rate with both recourse and nonrecourse options available.

FirstKey also offers its Fix & Flip Loans, which range from $75,000 to $1,000,000 for rehab projects. These loans have a fixed rate for up to 12 months.

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