Frequently Asked Questions

What are the advantages of using our investor rehab loan product?
We finance 100% of the purchase, construction, and closing costs and we close loans very quickly (typically within 7-10 days from the date of application). Our loans require no monthly payments for the loan duration and we never charge pre-payment penalties. Some lenders will charge application fees, inspection fees, wiring fees, etc. We only charge you points and interest on the loan - No Junk Fees! In addition, we allow borrowers to do mulitple projects at a time once a client has purchased one property and completed it successfully with us.

How and when are the construction draw funds released?

Construction funds are released on a weekly draw basis. The investor submits a draw request through our website by 5PM each Tuesday and the properties are then inspected by our territory director to approve the draw requests. Upon a positive inspection, a deposit is made directly into your checking account every Friday. Therefore, there is no delay in receiving construction funds from us. Please note that if any permits are required on your property, we will require copies of final inspection certificates to be faxed to our office prior to receiving a final construction draw for that certain construction category.

What is the maximum Loan to Value (LTV) ratio you will loan?

The maximum Loan-to-Value (LTV) that we will loan is 70% LTV and it is based on the after-improved value (ARV) of the property. For example, if a property will be worth $150,000 after it has been repaired, the maximum loan we will provide is $105,000. This amount includes the purchase price, construction amount, closing costs, origination points, and the interest reserve for the term of the loan. If the cost exceeds the 70% LTV that we loan, the investor can fund the difference between the 70% and the amount needed in the form of a down payment at closing. For loan amounts above $375,000, the maximum loan to value is 65%LTV.

How do I calculate my maximum purchase price under your loan program?

We will loan a max LTV of 70% which includes purchase costs, construction costs, closing costs, insurance, a six month interest reserve, and loan origination fees. In order for you to obtain 100% financing with no down payment, you can use this formula to calculate your maximum purchase offer. If your project costs exceed the formula below, a down payment will be necessary at closing for the overage.

After Repair Value x 60% - Construction Budget - Closing Costs = Maximum Purchase Price with no down payment necessary

Example: 150,000 ARV x 60% = $90,000 $90,000 - $15,000 Construction Costs = $75,000 $75,000 - $2,300 Closing Costs = $72,700 (Max Purchase Price with no down payment)

What is the duration of a loan from you?

Our rehab loans are typically set up for a 6 month loan term. The term of new construction or commercial development loans terms will be negotiated on a case by case basis.

What types of properties will you fund?
We will fund any residential project that doesn’t exceed four units. Therefore, single families, townhouses, condos, duplexes, and 4-plexes are all eligible for funding. We will also entertain new construction and development loans on a deal by deal basis.

What credit score must I have to receive a loan from you?

In order to qualify for our program, the borrower must have a minimum middle credit score of 680 and be able to qualify for a conventional refinance mortgage to pay off their loan. Experience in real estate and/or construction is an added benefit but not required. We inquire on your credit prior to each loan closing and we request that you provide us with a copy of your middle credit score at the pre-approval stage so that your credit score does not have to be pulled twice. You may obtain a free copy of your credit report online.

How long does it take for a borrower to be pre-approved and what is the typical time frame for closing a loan with you?

We can pre-approve a borrower immediately upon receipt of the borrower's credit report (middle score) pullled within the last 3 months. Once a loan application has been submitted to us, your loan should close in approximately 10-20 days if all requested documents have been provided promptly by the borrower.

Can you still fund my loan if I have four (4) or more financed properties?

For borrowers that currently have four (4) financed properties, We can still fund your loan! Our loan program for borrowers with four or more financed properties consists of the following options: 1) We will allow you to add a qualified credit partner to the loan that does not have four financed properties so that the loan can be closed under our standard loan program; or 2) If you would like to proceed without a credit partner, we will limit the loan to 60% LTV (subject to appraisal cash flow analysis) and request the last two years of tax returns and the last 3 months of bank statements.

In what geographic areas will You provide funding?

Our loans are available in:
Virginia (Hampton Roads & Tidewater Area, Richmond, Petersburg, Hopewell, Northern Virginia)

Maryland (Prince Georges, Montgomery, Howard, Anne Arundel, Baltimore, Baltimore City, Frederick, Carroll, Hartford, Calvert, Charles)

Washington D.C.

North Carolina (Greater Charlotte, Raleigh, Cary, Durham, Fayetteville, Greensboro, Wilmington)

Pennsylvania (Greater Philadelphia Area and the Greater Pittsburgh Area)

Missouri (Kansas City and Saint Louis)

Kansas (Kansas City)
Florida (Jacksonville, Orlando)

Texas (Dallas, Fort Worth, San Antonio, Austin)

Alabama (Birmingham, Tuscaloosa)

Who can I use for builders risk and general liability insurance coverage on your loans?

You can easily apply for builders risk and liability insurance online through our website!
Will you loan on properties that are occupied at the time of closing?Due to insurance restrictions and issues with construction work around tenants, we will not fund properties that are occupied at the time of purchase.

What can I use the loan proceeds for?

Our loans are for commercial purposes only and not for personal, family, or household purposes. Loan proceeds are for the purchase and rehabilitation of commercial investment properties intended to be resold for investment profit or rented to persons (other than family members) for investment return.