Construction Loans
EXPERIENCED – 3+ DEALS IN LAST 24 MONTHS
- Option 1: Max loan amount is 85% of purchase & rehab up to 70% of After Repaired Market Value
- Option 2: Max loan amount is 100% of the purchase and 100% of renovation up to 65% of After Repaired Market Value with 6 months interest hold required
NOVICE – 0-2 DEALS IN LAST 24 MONTHS
- Option 1: Max loan amount is 75 – 80% of purchase & rehab up to 70% of After Repaired Market Value with 6 months interest hold required
- Option 2: Max loan amount is 100% of the purchase and 100% of renovation up to 65% of After Repaired Market Value with 6 months interest hold required
CONSTRUCTION LOAN DETAILS
- Must have reserves for the monthly payments
- 12-month term (No prepayment penalty)
- 12% interest rate (1% per month)
- 3% points +$2,495 Loan Fee;$225 draw fees; $25 wire fees
- 100% renovation budget held in reserve
- No loans to individuals, only LLCs
- Loan size $75k-$1M(1–4 units); Minimum property value $100k; $350k max for no experience
- 650 Minimum FICO (660 Minimum for Option 1, 680 with no experience)
- 6 Months of liquid reserve required
- Non-owner occupied only
- All states except ID, AK, NV, ND, SD, MN, CA, OR, AZ, UT, VT
Long-Term Rental Loans
30-YEAR FIXED-RATE RENTAL LOAN
- 6.375% – 9.5% interest rate (depending on credit, LTV, buy down) Avg 7.5 – 8%
- 3% points + $2,495 Loan fee
- Up to 80% of As-Is Value or up to 80% LTC
- SHORT TERM RENTALS QUALIFY (+0.25% rate)
- Performing and rented properties only/non-owner occupied
- No loans to individuals, only LLCs
- Loan size $75k-$1.5M (1–4 units)
- Minimum property value $100k
- 650 Minimum FICO
- Prepayment penalty 0–5 years available
- Minimum Debt Service Coverage Ratio (Rent divided by PITIA) of 1%
- The seasoning on Refi: 3 months up to purchase + rehab, 6 months up to max LTV
- NOT based on the borrower’s income
- Impound accounts for taxes and insurance req.
- The average closing time frame is 4–6 weeks
- Portfolio loans available for multiple properties
- All states except AK, NV, ND, SD, MN, VT, IL, NC, NY, CA, ID
- Must own an investment property for 12 months. A first-time investor must own a primary residence for 12 months & Max LTV 75%. (Living rent-free by exception only with +0.25% rate)