FAQs Archive - Green Block Inc.

Q: What is the maximum term for a transactional loan?

Transactional funds can be held for a maximum of 5 calendar days.

Q: How are your STR loans different from your long-term rental loans?

The primary difference is the way in which the DSCR is calculated. For STRs with at least 12 months of rental income history, the DSCR is calculated using actual rental income. For vacation rentals without at least 12 months of STR rental income history or properties used as long-term rentals, the long-term market rent is used in the calculation. Maximum LTV/LTCs are slightly lower for STRs due to the potential volatility of income for vacation rentals.

Q: Do you use the actual STR income to qualify the property?

If the property has at least 12 months of STR rental income history, we can use the actual income in the DSCR calculation in order to qualify it for the loan. If it has less than 12 months of STR rental income history, we will use the market rent for a typical long-term rental in the DSCR calculation.