Financing

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)