General Questions
Q: What types of loans does OpenLane Funding offer?
OpenLane Funding specializes in investment property financing across five core products: Fix & Flip / Bridge loans, DSCR Rental loans, Ground-Up Construction loans, Multifamily loans (5+ units), and Commercial loans (mixed-use, office, retail, industrial, self-storage, and specialty assets). We work with dozens of private and institutional lenders to find the best rate, leverage, and terms for every deal.
Q: How fast can you close?
Closing timelines depend on the loan type. Fix & Flip and bridge loans can close in as few as 5–7 days for experienced borrowers, with a typical range of 7–21 days. DSCR rental loans close in 14–30 days. Construction loans close in 14–30 days. Multifamily and commercial loans range from 21–60 days depending on deal complexity. Speed is one of our biggest differentiators—we move fast and keep deals on track.
Q: What states do you lend in?
OpenLane Funding works with lenders that cover most U.S. states. Availability varies by loan program and lender, but we have strong coverage in Washington, Idaho, and across the West, Midwest, Southeast, and Texas markets. Submit your deal and we’ll confirm coverage for your specific property location within 24 hours.
Q: Do I need to provide tax returns or income documentation?
For most of our investment loan programs—no. DSCR rental loans qualify based on the property’s cash flow, not your personal income. Fix & Flip loans are asset-based and don’t require tax returns. Construction, multifamily, and commercial loans may require a personal financial statement, but full tax return documentation is typically not needed. This is private money and non-QM lending—the deal is what matters.
Q: What is the process from application to closing?
Step 1: Submit your deal through our online form or call us directly. Step 2: We review the deal within 24 hours and present your best loan options. Step 3: You select a lender and we move into underwriting (appraisal, title, due diligence). Step 4: We manage the process and keep you updated at every milestone. Step 5: Close and fund. From submission to closing, most deals take 7–30 days depending on loan type.
DSCR Loan Questions
Q: What is a DSCR loan?
DSCR stands for Debt Service Coverage Ratio. A DSCR loan is an investment property mortgage that qualifies based on the property’s rental income relative to its monthly debt obligations—not on your personal income, W-2s, or tax returns. The DSCR is calculated by dividing the property’s gross monthly rent by the total monthly payment (principal, interest, taxes, insurance, and HOA). A DSCR of 1.25 means the property generates 25% more income than its debt.
Q: What DSCR ratio do I need to qualify?
Most lenders look for a minimum DSCR of 1.0 to 1.25. A DSCR of 1.0 means break-even (rent covers the payment exactly). A DSCR of 1.25+ unlocks the best rates and terms. However, some lenders offer no-ratio programs or sub-1.0 DSCR options for borrowers with higher credit scores (700+) and lower LTV (65–70%). We have options across the spectrum.
Q: Can I use short-term rental income (Airbnb/VRBO) to qualify?
Yes. Many lenders accept short-term rental income for DSCR qualification. They’ll typically verify projected income through AirDNA market data, Rabbu projections, or a 12-month earnings history from your Airbnb/VRBO account. STR-qualified loans may have slightly different LTV limits or DSCR requirements, but they are widely available through our lender network.
Q: Can I close in an LLC?
Yes—and most investors do. DSCR loans are designed for investment properties held in LLCs, corporations, or trusts. Entity vesting provides asset protection and separates your investment properties from your personal assets. You’ll typically sign a personal guarantee, but the loan and title vest in the entity.
Fix & Flip / Bridge Loan Questions
Q: How much of the purchase and rehab costs will you fund?
Most fix-and-flip lenders fund up to 90–95% of the total purchase plus rehab cost (loan-to-cost), with a maximum of 70–80% of the after-repair value (ARV). Your out-of-pocket contribution varies based on the deal structure, but typical down payments range from 5–15% of the total project cost. Higher experience and credit scores generally unlock higher leverage.
Q: Do you fund 100% of the deal?
In rare cases, yes—particularly for experienced flippers with strong track records and high credit scores working on deals with significant equity margins. However, most deals require 5–15% down based on the purchase price. We also work with investors who bring equity partners to cover the down payment. Submit your deal and we’ll model the exact numbers.
Q: What experience do I need for a fix and flip loan?
Lenders prefer borrowers with 1–3+ completed flips in the past 36 months. Experienced flippers (5+ completed projects) get the best rates and highest leverage. First-time flippers can qualify but should expect slightly higher rates and may need to demonstrate a strong contractor team, detailed scope of work, and good credit (680+).
Q: What happens when I sell or refinance before the term ends?
Most fix-and-flip loans have no prepayment penalty or a very minimal one, so you can sell or refinance at any time without significant cost. This is by design—bridge loans are meant to be short-term. If you finish your flip and sell in 4 months on a 12-month term, you simply pay off the loan from sale proceeds. If you decide to keep the property as a rental, we can refinance you into a long-term DSCR loan.
Construction Loan Questions
Q: How do construction draws work?
Construction loans are funded in phases called draws. After closing, the land acquisition is funded and the remaining construction budget is held in escrow. As you complete each construction milestone (foundation, framing, mechanical, drywall, finish), you submit a draw request. A third-party inspector visits the site to verify the work. Once approved, funds are released within 3–5 business days. Most builds have 4–6 draws total.
Q: Do I need to own the land already?
No. Most construction lenders can include land acquisition as part of the loan. If you already own the land free and clear, its equity can count as your down payment or equity contribution. If the land is under contract, the lender can fund the purchase at closing alongside the construction hold-back. Having site-ready land with permits in place strengthens your application.
Q: How much building experience do I need?
Most lenders prefer 3+ completed ground-up builds in the past 36 months. Experienced builders get the best rates (9.5–11%) and highest leverage (up to 85–90% LTC). First-time builders can qualify if they have a licensed, experienced general contractor, a detailed construction plan with permits, and a strong credit profile (700+). Expect lower leverage and higher rates on your first build.
General Qualification Questions
Q: What credit score do I need?
Minimum credit scores vary by loan product. Fix & Flip loans: 600–680 minimum. DSCR Rental loans: 620–680 minimum. Construction loans: 650–700 minimum. Multifamily and Commercial loans: 660–700 minimum. Higher credit scores (750+) unlock the best rates and terms across all programs. Some asset-based programs have no minimum credit score.
Q: Can I qualify with a lower credit score?
Yes. We work with lenders across the credit spectrum. If your score is below the typical minimums, we can explore asset-based programs that focus on the deal rather than your credit, or hard money options with higher rates but flexible qualification. A strong deal with significant equity can offset a lower credit score. We’ll be straightforward about your options and pricing.
Q: Do you work with first-time investors?
Absolutely. Everyone starts somewhere. While experienced investors get the best pricing, first-time investors can qualify for fix-and-flip, DSCR rental, and even construction loans with the right deal structure, adequate credit, and realistic expectations. We’ll walk you through the process, explain the costs, and make sure you understand the numbers before you commit.
Q: Can foreign nationals qualify?
Yes. Several lenders in our network offer loan programs for foreign nationals and non-permanent residents. These typically require a higher down payment (30–40%), strong credit or credit equivalent documentation, and may have slightly higher rates. DSCR rental loans are the most common product for foreign national borrowers since they don’t require U.S. income documentation.