Investor Loan FAQ
Answers to the questions New Jersey investors ask most about business-purpose loans, borrowing through an LLC and each Lendiqo program.
General questions
What is a business-purpose loan?
A loan to a business entity, such as an LLC, to buy, renovate, build or refinance non-owner-occupied investment property. It isn't a consumer mortgage.
Do you make loans on a home I'll live in?
No. We lend only on investment property that won't be occupied by the borrower or the borrower's family.
Which loan programs do you offer?
DSCR rental loans, fix and flip loans, bridge loans, multifamily loans, mixed-use loans, ground-up construction loans, and loans to LLCs across all of these programs.
Where do you lend?
In all 21 New Jersey counties. Our office is in Lawrence Township, Mercer County. [CONFIRM: Other states served]
Do I need an LLC?
You need an entity to close. You can apply while you're forming one, as long as you have the certificate of formation, operating agreement and EIN before closing.
Will I sign a personal guarantee?
Usually yes. Members with significant ownership sign a personal guarantee. Ask whether a non-recourse option fits your deal.
What credit score do I need?
It depends on the program. [CONFIRM: Minimum credit score by program]
How much do I need for a down payment?
It depends on the program, your experience and the property. Leverage limits apply to the purchase price, the rehab budget and the after-repair value. [CONFIRM: Leverage limits by program]
Do you lend to first-time investors?
Often yes, usually with more conservative leverage. A strong deal, cash reserves and an experienced contractor all help.
How long does closing take?
It depends on the appraisal, title and how quickly documents come in. [CONFIRM: Typical closing timeline by program]
Do you show rates online?
No. Pricing depends on the program, leverage, credit, experience and the property, so we quote each deal in writing.
Will applying affect my credit?
Submitting the short application doesn't pull your credit. We review credit later, with your permission. [CONFIRM: Credit pull policy]
DSCR Loans
Do I need tax returns or pay stubs for a DSCR loan?
No. DSCR loans don't use personal income documentation. The lender reviews the property's lease or market rent, your credit, your reserves and your LLC documents.
Can I close a DSCR loan in my LLC?
Yes. DSCR loans are made to business entities such as LLCs. Members usually sign a personal guarantee.
Do you lend on short-term rentals?
Yes, subject to the program and the town's short-term rental rules. Some programs use the appraiser's long-term market rent, and others can consider short-term rental income with supporting history.
Fix and Flip Loans
Will a fix and flip loan appear on my personal credit report?
Under normal circumstances, business-purpose loans aren't reported to the consumer credit bureaus. [CONFIRM: Credit-reporting policy on business-purpose loans]
Can I use a fix and flip loan on my primary residence?
No. Fix and flip loans are business-purpose loans for investment property only. Owner-occupied homes aren't eligible.
How is the rehab budget funded?
The purchase portion funds at closing. The renovation portion is held back and released in draws after an inspection confirms each stage of work is complete.
More about fix and flip loans →
Bridge Loans
What's the difference between a bridge loan and a DSCR loan?
A bridge loan is short-term, usually interest-only, and sized on the property's value and your plan. A DSCR loan is long-term and sized on stabilized rent. Many investors use a bridge loan first and refinance into a DSCR loan.
How fast can a bridge loan close?
It depends on the appraisal, title and how quickly you send documents. [CONFIRM: Bridge typical days to close]
Can I get a bridge loan on a vacant property?
Yes. Vacant and under-rented properties are a common bridge use, as long as the business plan and exit are realistic.
Multifamily Loans
Do you finance 5+ unit apartment buildings?
Yes. Buildings with five or more units go through our multifamily programs. For 2–4 units, see our DSCR rental loans.
Can you finance a building with high vacancy?
Often yes, with a bridge loan based on the business plan and the as-is value, followed by a refinance once the building is stable.
Do you finance multifamily new construction?
Yes. Construction loans can fund acquisition, horizontal and vertical costs with inspected draws.
More about multifamily loans →
Mixed-Use Loans
Can I get a DSCR loan on a mixed-use building?
Often yes, when the building is mostly residential and the leases support the payment. Buildings with a larger commercial share may go through a commercial program.
What if the storefront is vacant?
It can still be financed, usually at lower leverage or with a bridge loan until the space is leased.
Do you lend on mixed-use buildings outside the big cities?
Yes. Main-street buildings in towns like Freehold, Somerville, Hightstown and Pennington are common mixed-use deals.
Construction Loans
Do you finance teardown-and-rebuild projects?
Yes. The loan can fund the new build on an existing lot, with draws released as construction progresses.
Do I need permits before closing?
Usually yes for vertical construction draws. Talk to us about land and horizontal-stage financing while approvals are pending.
Can I refinance into a rental loan when the build is finished?
Yes. If you'll hold the property, a DSCR loan can refinance the construction loan once it's complete and leased.
More about construction loans →
LLC Loans
Can a brand-new LLC get a loan?
Yes. Lenders look mainly at the property and the guarantors' credit and experience, not the age of the entity. You'll need your formation documents and EIN.
Do I need an operating agreement?
Yes. Lenders and title companies need to see who owns the LLC and who can sign the loan documents.
Can my LLC have partners?
Yes. Members with significant ownership usually guarantee the loan, and the operating agreement must authorize the signer.
Ready to talk about a deal?
Send the basics on a property and a loan officer will follow up. You'll hear back from a person, not a call center.