Business Purpose Lending Provides Flexibility for Loan Officers

Business purpose loans provide loan officers the flexibility to fully serve their real estate investor clients. Loan officers who understand how business purpose loans work and what it means to offer a true LLC lending product can potentially increase their volume. Often times, there is a lot of confusion around what it means when we say a true LLC lending product. Our goal is to adequately educate our clients on how to be successful delivering these loans and the Non-QM products that offer business purpose lending. Deephaven offers these unique lending products in the Non-QM space within our Expanded-Prime, DSCR and Non-Prime mortgage solutions. The LLC borrower loan is only available on our DSCR product. We do, however, have a business / investment purpose loan option on our Expanded-Prime and Non-Prime loan products. The borrower must be a natural person. We are a Non-QM loan lender and have been recognized as a leader in the space. 

What is a business purpose loan?

A business purpose loan uses the proceeds primarily for a non-consumer purpose, such as to purchase an investment property that will be used as a rental property. A borrower can be the natural person, or the business entity obligated to repay the loan. A natural person borrower can decide to borrow on their own behalf or with a co-borrower. A limited liability company (LLC) borrower is a business entity that is borrowing money on behalf of the LLC. In this case the owners of the LLC are members. Ownership or title vesting in the name of the LLC, partnership or corporation is only allowed on investment transactions. Partnering with Deephaven gives you access to our Non-QM products that are available nationwide including certain states without licensing requirements for brokers, loan officers, and lenders. 

What loan products are available with business purpose lending?

Loan products for natural person borrowers purchasing an investment property include Expanded-Prime, Non-Prime and DSCR. LLC borrowers are only allowed on our DSCR product. All of our products include cash-out refinance solutions and interest-only options. 

Our business purpose lending products include:

DSCR Loan – Our cash flow loan solution provides a quick close specifically for real estate investors. This loan product does not require a traditional income analysis or employment information. Qualification is based on the cash flow of the subject property. Our DSCR loan can be used for an Airbnb and short-term rentals. 

  • Up to 80% LTV
  • Loan amounts up to $2 million
  • Ability to vest in the name of an LLC or corporation
  • Interest-only options to maximize property cash flow

Expanded-Prime – A loan solution for borrowers who do not meet the traditional requirements of an Agency loan. Borrowers who use this loan option are qualified and can prove their ability-to-repay their mortgage. They simply need alternative mortgage solutions such as a Non-QM bank statement loan for self-employed borrowers who cannot provide traditional documentation, such as tax returns, to qualify. 

  • Up to 90% LTV, no MI
  • Loan amounts up to $3.5 million
  • Standard full doc, 1-year P&L, bank statement submissions
  • Up to 50% DTI
  • Second homes and investment properties


Non-Prime – Borrowers who have recovered from credit events such as foreclosure, short-sale, deed-in-lieu or bankruptcy can still qualify for a mortgage. This flexible solution has helped many borrowers when a traditional loan wasn’t an option.

  • Up to 80% LTV, no MI
  • Loan amounts up to $1.5 million
  • Up to 50% DTI
  • Standard full doc, 1-year P&L, bank statement submissions


Ready to get started? Contact us today at to learn more. Soon you will be expanding your real estate investor network as a go-to expert in business purpose lending.

Business purpose loans