Rental developers
Developers building homes to hold, who want the permanent rental loan mapped before construction.
Business-purpose · Build to hold
Build-to-rent financing, from ground-up to stabilized.
Business-purpose capital for rental homes and BTR communities — with the long-term rental exit planned before the first draw.
How it works.
Build-to-rent (BTR) means constructing homes specifically to hold as rentals. A BTR project usually has two financing stages: a construction loan that funds the build, and a permanent rental loan that replaces it once homes are complete and leased. Planning both together avoids surprises at the hand-off.
Single rentals vs. communities. A builder adding a few rental homes to a portfolio uses a different structure than a developer building a dedicated rental community. Scattered-site projects are often refinanced home by home; communities may be financed and stabilized as a group.
Construction-to-permanent considerations. Some programs combine construction and the permanent loan; others treat them separately. Separate loans can offer flexibility but add a second closing and exposure to rate and value changes. We compare both paths for your project.
Projected rents and stabilization. The permanent loan is typically sized on the property's rent compared with its payment — the debt service coverage ratio (DSCR). Appraisers provide market rent schedules for completed homes, and lenders may require homes to be leased before the refinance. Realistic rent projections at the start protect the exit.
Who it fits
Where this program does the most work.
Portfolio builders
Builders adding rental homes to a growing portfolio, often in an LLC, across one or more markets.
BTR community projects
Dedicated rental communities where construction, lease-up and stabilization are financed in phases.
Spec builders converting to hold
Builders choosing to keep finished homes as rentals instead of selling into a slower market.
Guideline snapshot
What lenders review on a BTR file.
- Loan purpose
- Business-purpose only — rental property held for investment
- Construction stage
- Budget, plans, permits, land position, draw schedule and builder experience
- Rent projections
- Market rent analysis or appraiser rent schedule for completed homes
- Permanent loan
- Typically a DSCR rental loan sized on rent versus the full housing payment
- Stabilization
- Lease-up status; some programs require signed leases before refinance
- Portfolio
- Entity ownership, existing rentals and reserves across the portfolio
- Loan-to-cost
- Up to 85% LTC on qualifying projects
- Loan-to-value
- Up to 90% LTV on qualifying projects
- Loan amounts
- $75,000 to $200 million
- Terms
- 12 to 36 months
- Rates
- Starting at 8.75% for qualifying borrowers and projects; your rate depends on experience, leverage, market and project
General ranges shown for orientation only. Guidelines, calculation methods, documentation, property eligibility, reserves, rates and terms vary by lender and program and are subject to change. This is not a pre-qualification, approval or commitment to lend.
Business-purpose loans only. Not available for consumer, personal, family or household purposes. Maximum leverage, loan amounts, terms and starting rates apply to the most qualified borrowers and projects, are not available in every scenario, and are subject to change without notice. Mike Keys, NMLS #2795829 | Clear Rate Mortgage, LLC, NMLS #2470446. Equal Housing Opportunity.
Build-to-Rent Financing FAQ
Questions borrowers ask.
What is build-to-rent financing?
Business-purpose financing to construct homes intended to be held as rentals, usually a construction loan followed by a long-term rental loan once homes are leased.
How is the permanent loan sized?
Most BTR exits use a DSCR loan, which compares the property's rent with its full payment including taxes and insurance. Rent projections should be checked against that ratio before construction begins.
Do homes need to be leased before refinancing?
Many programs require leases or a stabilization period before the permanent loan; some allow refinancing on market rent. Requirements vary by program.
Is one loan for construction and permanent better?
Not always. A combined loan removes a second closing; separate loans can provide flexibility. The right fit depends on the project, timeline and program availability.
Is BTR financing available nationwide?
These business-purpose programs are available for qualifying projects nationwide, subject to program, property and lender guidelines.
What are current rates and leverage?
Programs offer up to 85% loan-to-cost, up to 90% loan-to-value, $75,000 to $200 million loan amounts, 12 to 36 month terms and rates starting at 8.75% for qualifying projects. Your exact terms depend on experience, market and project.
Not sure which documentation path fits? That is the conversation.
Financing Provided Through
Clear Rate MortgageLicensed Mortgage Lender · NMLS #2470446
Mike Keys · NMLS #2795829 · Company NMLS #2470446
A boutique client experience, backed by a national lending platform.
- · Company licensed in 17 states
- · Broad portfolio of loan solutions
- · Experienced lending & operations team
- · Professional service from application through closing