Loan Terms and Conditions

Investor Rehab Loan Program

We offer two pricing options for the borrower to choose from on our investor rehab loans. Borrowers may choose from two rate programs:

- 6 Points and 15% Interest (No Monthly Payments!) (Not available in the state of FL)

- 8 Points and 10% Interest (No Monthly Payments!)

Please note: We do not charge application fees, inspection fees, underwriting fees, or any other "junk fees" that other lenders often hide from the borrower. These "junk fees" can often amount to many thosands of dollars or points.

Duration of Loans 6 Months!

The time frame of the loan is for a maximum of six (6) months. The borrower must have the property refinanced and the loan repaid by the six (6) month deadline. The sooner your loan is paid off, the more money you save - the unused portion of your interest reserve can be refunded to you!

No Monthly Payments!

We build in an interest reserve into your loan so that you have no monthly payments during the loan term. If we agree with the borrower to extend the loan after the 6 month loan term period has elapsed, the borrower will be responsible for making an extension fee payment and monthly interest payments.

Loan Amounts

Investor Rehab Loans will be 100% of the purchase price and 100% of the repair funds so long as the LTV does not exceed 70% of the ARV (after repair value). We have no minimum or maximum loan amounts. For loan amounts less than $50,000 minimum fees will apply.

Loan to Value (LTV)

The maximum loan to value (LTV) we will lend is 70% LTV, which is based on the after-repaired-value (ARV) of the property. The LTV calculation will include the purchase price, construction costs, purchase closing costs, points, and an interest reserve for the term of the loan. For loan amounts over $375,000, the maximum LTV we will fund is 65% LTV and we reserve the right to request a downpayment at closing from the borrower.

Appraisals

All appraisals will be ordered by us upon receipt of the loan application. Borrower provided appraisals will not be accepted. The appraiser will request the full scope of work and construction costs from the borrower directly.

We will not fund any loans with less than a $50,000 ARV. For properties with an ARV between $50,000 and $60,000, the LTV will be capped at 65%.

All appraisals will be reviewed to ensure that properties cash flow based on the operating income statement. If a property does not cash flow, we will still proceed with funding the loan based on a reduced loan amount.

Builders Risk and General Liability Insurance

We have master builder's risk and general liability insurance policies avialable. All properties will be insured at closing and all insurance premiums will be included in the loan amount.

Borrowers with more than Four (4) Financed Properties

For borrowers that currently have Four (4) financed properties, we can still fund your loan! The 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 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.