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A Padsplit is a house with several bedrooms being rented by the room on a weekly basis. Many times Living rooms, dining rooms, garages, or other rooms are converted into bedrooms so that the investor can get the most rent out of their spaces. As a landlord or an investor, how do you finance these properties?

Here at Coast2Coast Mortgage many of our loan officers are also investors. We know the investing space very well and how to finance these types of properties. There are a few programs to choose from such as:

The Nation's First PadSplit Loan!

We have worked with our investors to develop the first loan program of its kind to finance a Padsplit property that already has Dining rooms and living rooms converted into bedrooms. The program does not have a DSCR requirement, and you can use it to finance a new purchase or refinance cash out of an existing Padsplit up to 75% LTV. The loan is a 30-year fixed-rate product. Please note this is a commercial product, but can be used on 1-4 family homes and mixed-use properties. No income documents are required. 

Existing Padsplit Purchases and Refinances: 

With 12 months rental history we can qualify you 80% LTV for purchase or rate and term refi and up to 75% LTV Cash out on a fully operational Padsplit using a 1.0 DSCR ratio based upon Padsplit income statements using a 12 month average. 620 Minimum Credit score and $100k minimum loan amount on this program. Ask us for more details. 

If you do not have a 12 month rental history  we still have a product that we can qualify you using long term rental income based upon the appraiser's opinion of market rent or we can utilize 80% of Air DNA Short term rental income. Ask us for more details.

Real Estate Investor Bank Statement Loan

This is an alternative program designed for the self-employed individual who has solid deposits in their business bank account. We will count Wholesale income, rental income, house flipping income, and ordinary business income. This program is often used to finance PadSplits. No tax returns, just your most recent 12 bank statements are used to calculate your business deposits. 

Unleased Property Loans

Another popular program for PadSplit financing is our Unleased Property Loans. If your house is just about ready to rent, we can send the appraiser out to inspect the home before a tenant is in the property giving us the ability to do a DSCR loan. We can count 100% of the appraiser's opinion of market rent into your DSCR. We explain DSCR on another page, but for simplicity here, if the rental income is equal to the mortgage payment PITIA, then the property will income qualify. We will not need tax returns, W2s, or any other income documents. 

Fix to Rent / Fix and Flip Loans

This product can be used for a first-time investor or an experienced investor. Your down payment is as little as 10% down, and we can finance up to 100% of the renovation costs. Down payment varies based on how much experience you have with rentals and flipping houses. These loans are from 6-18 months and are a great way to grow your real estate portfolio. Once your rehab is complete we can also help you get permanent financing. 

We have additional financing options as well for PadSplits. Please reach out to one of our loan officers today to discuss your options or fill out the form on this page. 

To learn more about Padslit watch this 1 minute video:

To have a Padsplit representative contact you click here:

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Disclaimer: Coast2Coast Mortgage, LLC is not affiliated with Padsplit. All graphics pertaining to Padsplit are used with permission and are fully owned by Padsplit. Padsplit is not responsible for any mortgages originated by Coast2Coast Mortgage. Please direct any questions, concerns, or complaints: to