Phone: (844) 223-2231
Address: 1920 Main Street, 92614 Irvine, CA United States
States They Lend In:All 50
Colony American Finance is a leading provider of financing solutions to residential real estate investors. We provide attractive long term debt products for stabilized rental properties as well as credit lines for new acquisitions.
“Financing investor-owned rental properties and providing acquisition capital to help grow your business.”
Our process is built from experience. Timely and efficient closing processes matter to us as much as they do to you. We pride ourselves on flexibility that works for your business. Our credit lines provide funds when you need them; our term loans allow you to unlock the value in your rental properties.
What kind of loan products do you offer?
We offer Credit Lines and Term Loans. We have two types of Credit Lines: Entrepreneurial Lines sized between $500,000 to $3 million and Institutional Lines ranging from $3 to $50+ million. Our Term Loans are fixed rate loans with either 5 or 10-year terms. We have non-recourse and recourse options for borrowers.
What property types do you lend on?
We lend on single family homes, condos, townhouses, 1-4 unit residences and small multi-family assets.
What is the difference between a Colony American Finance loan and a residential home loan?
We are a commercial lender that lends to Limited Liability Corporations (LLCs) and not directly to individuals. Our borrowers use the proceeds from our loans to finance their real estate businesses whereas residential home loan borrowers use their proceeds to finance a primary residence.
What kind of real estate experience is needed to qualify?
Our borrowers range from those who have fixed/flipped a couple homes to those who manage hundreds of rental properties. We have loans tailored to different borrower experience levels and funding needs.
Do you have minimum credit scores?
We do not have a minimum credit score threshold. Instead, we look at a borrower’s overall credit profile, track record and liquidity.
Do you offer non-recourse loans?
Yes, we offer both recourse and non-recourse term loans. Recourse loans are guaranteed by the individual or operator. Non-recourse loans are secured only by the underlying real estate of the borrower, with certain exceptions such as such as fraud and bankruptcy.
Can I use my line of credit to purchase in multiple states?
Yes. Many of our borrowers take advantage of this feature.
Do you do finance rehab expenses and ground up construction?
We finance certain rehab expenses under our Institutional Credit Lines. At this time, we do not offer ground up construction but we are evaluating this feature. Check back soon!
What is a Debt Service Coverage Ratio (DSCR)?
The debt service coverage ratio (DSCR) is the relationship of a property's annual net operating income (NOI) to its annual mortgage debt service (principal and interest payments). For Term Loans, we use DSCR to determine how large of a Term Loan can be supported by the cash flow generated from a borrower’s portfolio
What is Loan-to-Value (LTV) and how is it used to determine the proceeds of my loan?
Loan-to-Value (LTV) is the relationship of the size of the loan to the current value of the properties supporting the loan. We use LTV to determine the size of a Term Loan and the advance proceeds for Credit Lines.
What does Yield Maintenance mean and how does it work?
Yield maintenance is a form of prepayment penalty that only applies if the borrower pays off the loan before a predetermined date. If applicable, the payment due is the present value of remaining future interest payments over the balance of the loan term.
Do your loans amortize?
Most of our Term Loans amortize based on a 30-year schedule. We also have Interest Only options available.
What is the minimum number of properties needed for a Term Loan?
For our Term Loan products, we require a minimum of 5 units.
What is the minimum amount I can borrow?
For our Term Loan and Credit Line products, we typically require a minimum loan amount of $500,000.
Are your interest rates fixed or floating?
We offer fixed interest rates on all products.
What happens to the outstanding balance on the maturity date of the loan?
The outstanding balance is due at the maturity date. This is often referred to as a “balloon” payment.
What is your turnaround time for an application?
We usually respond back to potential borrowers with a term sheet in 4-7 days.
How long will it take to close my loan?
Most of our Term Loans close within 30-45 days. Our Credit Lines typically close within 14-21 days.
Can I manage my own properties?
Yes. Borrowers can self-manage their own properties or use 3rd party property managers.
Buy and Hold? Fix and Flip?
We have the capital for either strategy.
Our portfolio and single asset term loans provide liquidity and long-term peace of mind to owners of stabilized rental properties.
Our pre-approved credit lines provide funds to investors with shorter investment horizons or those looking for acquisition capital to build a portfolio.
All our loans can be used for new purchases or to refinance existing properties.
Portfolio Term Loans
- 5+ Rental Properties
- Single-family, Townhomes & Multi-Uni
- Fixed Rate
- Up to 75% of Valu
- 5 or 10 Year Term
- Recourse and Non-recourse Option
- $500K to $100M Loan
- 4-6 Weeks to Close
Single Asset Loans
- Individual Rental Propertie
- Single-family, Condo, Townhomes & 2-4 Unit
- Fixed Rate
- Up to 75% of Valu
- 30 Year Ter
- Individuals or LLC
- $75k to $1M Loans
- 3–4 Weeks to Close
- Acquisition Financin
- Single-family, Townhomes & Multi-Unit
- Fixed Rate
- Up to 80% of Cos
- 12-24 Month Term
- Revolving & Non-revolving Option
- $1M to $50M Loan
- 2-4 Weeks to Close