Question 1

Does the new federal cap on institutional buyers change anything for me in Atlanta?

Accepted Answer

Not directly, and that is the point. The 21st Century ROAD to Housing Act became law on July 11, 2026 and takes effect January 7, 2027. It bars a "large institutional investor," defined as an entity with investment control of 350 or more single-family homes alone or in concert with others, from buying or contracting to buy any single-family home. Penalties run up to the greater of $1,000,000 per violation or three times the purchase price, and portfolio reporting to HUD is due annually by December 31. If you own a handful of doors, you are nowhere near that line. Atlanta is where this lands hardest: the metro leads the country in institutional single-family rental ownership, roughly 72,000 homes by one count. Build-to-rent is exempt, so the reasonable read is that institutional capital shifts toward newly built rentals rather than competing with you on existing houses. Treat that as a read, not a forecast, and talk to your attorney about how the rule applies to any entity structure you share with partners.

Question 2

Can I underwrite short-term rental income on a property inside Atlanta city limits?

Accepted Answer

Usually not, because the city's license is tied to a primary residence. Atlanta's short-term rental ordinance, 20-O-1656, was adopted March 15, 2021 and took effect March 1, 2022. It authorizes a Short-Term Rental License for a host's primary residence, and a single license can cover that residence plus one additional dwelling unit, a two-property maximum. A pure investment short-term rental with no owner occupancy does not fit that framework. The reported terms are a $150 annual license fee, $500 per adjudicated violation with each day counted separately, and three violations in 12 months revokes the license and blocks reapplication on that property for a year. The suburbs each set their own rules and they are not uniform: South Fulton charges a $200 application fee, Sandy Springs requires a business license plus a permit and has sued non-compliant operators, and Roswell requires registration and annual fire-marshal inspections. Verify the current fees and the licensing path with the specific jurisdiction before you build nightly revenue into the ratio. If it does not clear, we underwrite to long-term market rent instead.

Question 3

Why is my Atlanta tax escrow higher than the seller's current bill?

Accepted Answer

Because your property gets reassessed to market with no inflation cap. Georgia assesses at 40% of fair market value, so the effective rate is the millage times 0.40. Georgia HB 581 created a statewide floating homestead exemption effective January 1, 2025 that caps annual growth in a homestead's taxable value at CPI, but Fulton, Gwinnett, Cobb and DeKalb, their school districts, and the City of Atlanta all opted out by the March 1, 2025 deadline. Even where it applies, it is a homestead exemption, and investment property is not homesteaded. So the cap does nothing for you twice over. Underwrite the go-forward assessed value, not the number on the seller's bill, and expect a step up on a recently rehabbed house. For reference, Fulton County held its general-fund millage at 8.87 mills for 2025, but that is the county levy only and the school and municipal levies are usually the larger share. Run the ratio both ways with the DSCR calculator, and talk to your CPA about your own position.

Question 4

What does Georgia's intangible recording tax add to my cash to close?

Accepted Answer

About 0.30% of the loan amount on a long-term note, and it is a line most out-of-state investors have never seen. Georgia charges an intangible recording tax of $1.50 per $500 of the face amount of the note, or $3.00 per $1,000, capped at $25,000 per note. On a $400,000 DSCR loan that is roughly $1,200. Legally the holder of the note owes it; in practice the borrower pays it at closing, and it is due within 90 days of execution. This is not a filing formality: unpaid intangibles tax bars collection by any action, foreclosure, or exercise of the power of sale until the tax plus interest and a 50% penalty is paid. Short-term notes are exempt, and HB 586 is reported to have raised the short-term threshold from 36 months to 62 months effective July 1, 2025, which may put a 12-month bridge on the same house outside the tax while a 30-year DSCR note stays inside it. The Department of Revenue page does not restate the 62-month rule, so confirm the treatment with your Georgia closing attorney rather than treating it as a saving we have promised. There is also a flat $10 residential mortgage fee per loan on 1-4 family property. On a refinance with the same lender and same borrower, the tax applies only to the unpaid principal balance carried over.

Question 5

Should I underwrite rent growth on an Atlanta rental right now?

Accepted Answer

No. Underwrite flat rent and treat any increase as upside. Single-family rents in Atlanta fell 0.2% year over year in the first half of 2026, putting the metro among the Sun Belt markets where single-family rent growth went slightly negative. On the multifamily side, Q1 2026 metro vacancy was 6.4% with average asking rent near $1,600 and rent growth of 0.4%, and 17,100 units were still under construction against 3,200 delivered and 3,400 absorbed in the quarter. Supply, not demand, is the constraint on rent today. Atlanta also had roughly 3,500 build-to-rent units under construction as of the first quarter of 2026, third-largest pipeline in the country, and the federal exemption for build-to-rent gives institutional capital a reason to keep adding to it. Competing product matters to your rent line. Bring us a signed lease or a real rent comp set rather than a pro-forma bump, and see the DSCR program terms for leverage and structure.

Question 6

Who actually closes a DSCR refinance in Georgia?

Accepted Answer

A licensed Georgia attorney, every time. The Supreme Court of Georgia treats preparing or facilitating execution of a deed as the practice of law, under In re UPL Advisory Opinion 2003-2, and the attorney has to be physically present. Telephonic supervision of a non-lawyer closer does not satisfy it, and closing and disbursing funds in violation is a misdemeanor with civil liability attached. There is no path where a title company simply handles escrow. The closing attorney holds and disburses the funds, so line them up early. Georgia also secures the loan with a security deed, a deed to secure debt that conveys legal title to the lender, rather than a mortgage. If you default, Georgia forecloses non-judicially on the first Tuesday of the month between 10 a.m. and 4 p.m. at the county courthouse, after 30 days' notice to the debtor and four weekly advertisements in the county legal organ. Mail-away closings exist and are structured around the attorney requirement rather than replacing it.

Question 7

What is a DSCR loan, and how do I qualify without tax returns?

Accepted Answer

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Question 8

What rate and terms can I get on a rental loan?

Accepted Answer

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

Question 9

How much can I borrow, and what is the maximum LTV?

Accepted Answer

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

Question 10

What credit score do I need for a DSCR loan?

Accepted Answer

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Question 11

Can I get a DSCR loan on a short-term rental (Airbnb)?

Accepted Answer

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Question 12

Is there a prepayment penalty?

Accepted Answer

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.

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