C R E D I T N E R D S

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SaasLand

Title of Area

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Check Out Some of the Available Programs

Bank Type Financing

These programs are built for those investors looking to leverage their own credit and assets to create their portfolio. Bank type loans will generally have at least a moderate credit score requirement as well as more stringent approval requirements such as Debt to Income ratio and liquidity. Although these loans may be harder to receive, they do also have some advantages for those that fit the program requirements such as lower costs and more favorable terms.

Property Types – Office, Retail, Industrial, Self-Storage, Single Tenant, Mixed Use, MF 5+, Mixed Use

Territory – Top 100 MSAs  See them here

Available Loan Amounts – Up to $10 million

Use of Funds – Purchase, Refi, and Cash Out Refi

Max LTV  – 75% of the lesser of appraised value or purchase price

Debt Service Ratio: DSCR: 1.25x (UW NOI).

Loan Terms – Varies but does include interest only options.

Amortization –  15, 20, 25, 30. Up to 10 yrs Fixed.

Interest Rate – 4.80-6% (subject to property type & market conditions)

Pre-Payment Penalty – Step Down, Flat, and Yield Maintenance options

Lender Fees – $2000-$7500, Expense Deposit Possibly Required

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 680+ in order to qualify. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require an Executive Summary, any Current rent roll, PFS, a Tri-merge credit report, Past 3 years tax returns (personal and business if applicable), Past 3 years operating statements & current year to date operating statement, Business Debt Schedule, and Pictures of the property.

Special Notes

The majority of these lenders will work with foreign nationals; the property can only be 30% owner occupied; there are non-recourse loans available; and we can work with lower occupancy properties that can show a strong cash flow.

Property Types – Any property at least 51% owner occupied

Territory – Nationwide

Available Loan Amounts – Up to $5 million

Use of Funds – Acquisition and Refi of owner occupied property

Max LTV  – 90% of the lesser of appraised value or purchase price

Loan Terms – Up to 25 Years. Fixed options available

Interest Rate – 6.25% (subject to property type & market conditions)

Debt Service Ratio – 1.15 DSCR

Pre-Payment Penalty – 5% for 5 years

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 680+ in order to qualify. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require an Executive Summary, any Current rent roll, PFS, a Tri-merge credit report, Past 3 years tax returns (personal and business if applicable), Past 3 years operating statements & current year to date operating statement, Business Debt Schedule, and Pictures of the property.

Property Types –

This funding option can be used for Hotels, Assisted Living, Self-storage, Schools, Day cares, Restaurants (case-by-case), Funeral Homes, Food Processing, Hospitality, Medical/Dental offices, Industrial & Manufacturing (including heavy), and more.

Territory – Nationwide

Available Loan Amounts – Up to $1 million to $16 million

Use of Funds – Purchase, Refi, and Cash Out Refi

Max LTV  – 75% of the lesser of appraised value or purchase price

Loan Terms – Up to 20-25 Years. Fixed options available

Interest Rate – 5% to 6% (subject to property type & market conditions)

Debt Service Ratio – Case by Case DSCR

Pre-Payment Penalty – Step Down, Flat, Yield Maintenance. 

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 680+ in order to qualify. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require an Executive Summary, any Current rent roll, PFS, a Tri-merge credit report, Past 3 years tax returns (personal and business if applicable), Past 3 years operating statements & current year to date operating statement, Business Debt Schedule, and Pictures of the property.

Property Types –

This funding option can be used for Stabilized properties of 5+ units, mixed use, mobile home parks, student & senior housing (without an assisted living component).

Territory –

Coastal Southern California, San Jose, Salt Lake City, Chicago, San Francisco Bay Area, Boston, Washington DC, Philadelphia, Seattle, Minneapolis/St. Paul, Denver, Portland, NY Metro, New Jersey, Miami, San Antonio, Austin.

Available Loan Amounts – Up to $300K to $3 million

Use of Funds – Purchase, Refi, and Cash Out Refi

Max LTV  – 75% of the lesser of appraised value or purchase price

Loan Terms – 25-30 year amortizations. 3, 5, 7, and 10 fixed options

Interest Rate – 4+% (subject to property type & market conditions)

Debt Service Ratio – 1.30+ DSCR

Pre-Payment Penalty – Step Down, Flat, Yield Maintenance. 

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 680+ in order to qualify. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require an Executive Summary, any Current rent roll, PFS, a Tri-merge credit report, Past 3 years tax returns (personal and business if applicable), Past 3 years operating statements & current year to date operating statement, Business Debt Schedule, and Pictures of the property.

Special Notes

Lenders work with Foreign nationals as well but at a lower LTV. Non-recourse offered at a 50% LTV.

Property Types –

This funding option can be used for Retail, Industrial, Office, Mixed-Use, Self Storage and Warehouse.

Territory –

Coastal Southern California, San Jose, Salt Lake City, Chicago, San Francisco Bay Area, Boston, Washington DC, Philadelphia, Seattle, Minneapolis/St. Paul, Denver, Portland, NY Metro, New Jersey, Miami, San Antonio, Austin.

Available Loan Amounts – Up to $1 million to $30 million

Use of Funds – Purchase, Refi, and Cash Out Refi

Max LTV  – 70% of the lesser of appraised value or purchase price

Loan Terms – 25-30 year amortizations. 3, 5, 7, and 10 fixed options

Interest Rate – 4+% (subject to property type & market conditions)

Debt Service Ratio – 1.30+ DSCR

Pre-Payment Penalty – Step Down, Flat, Yield Maintenance. 

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 680+ in order to qualify. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require an Executive Summary, any Current rent roll, PFS, a Tri-merge credit report, Past 3 years tax returns (personal and business if applicable), Past 3 years operating statements & current year to date operating statement, Business Debt Schedule, and Pictures of the property.

Special Notes

Lenders work with Foreign nationals as well but at a lower LTV. Non-recourse offered at a 50% LTV.

Property Types –

This funding option can be used for Conventional multi-family housing with five residential units or more. Mixed use subject to limitations.

Territory – Nationwide

Available Loan Amounts – Up to $1 million to $5 million

Use of Funds – Purchase, Refi, and Cash Out Refi

Max LTV  – 80% of the lesser of appraised value or purchase price

Occupancy – Minimum 90% occupancy for 90 days prior to underwriting

Loan Terms – 20 Year Hybrid ARM with initial 5-, 7-, or 10 year fixed rate period 5-, 7-, or 10-year fixed-rate mortgage

Amortization – Up to 30 years

Recourse – Non-recourse with standard carve-out provisions

Interest Rate – 3.8+% (subject to property type & market conditions)

Debt Service Ratio – 1.2 to 1.4 DSCR

Pre-Payment Penalty – Step Down, Flat, Yield Maintenance. 

Sponsor Financials –

Net worth equal to or exceeding loan amount and Liquidity equal to or greater than 9 months of P&I prior to closing

Tax & Insurance Escrow –

Real estate tax escrow is not required for transactions with 65% LTV or less. Insurance escrows deferred

Replacement Reserve Escrows – Subject to Underwriting

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 650+ in order to qualify. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require an Executive Summary, any Current rent roll, PFS, a Tri-merge credit report, Past 3 years tax returns (personal and business if applicable), Past 3 years operating statements & current year to date operating statement, Business Debt Schedule, and Pictures of the property.

Special Notes

Lenders work with Foreign nationals as well but at a lower LTV. Non-recourse offered at a 50% LTV.

Property Types –

This funding option can be used for Multi-family, mobile home park, office, retail, industrial, hotel, self-storage, garage, and other similar property types

Territory – Nationwide

Available Loan Amounts – Up to $5 million to $250 million

Use of Funds – Purchase and Refi

Max LTV  – 80% of the lesser of appraised value or purchase price

Loan Terms – 30 year amortizations. 5 and 10 year fixed options

Interest Rate – Competitive, Swap Based Pricing

Debt Service Ratio – 1.25+ DSCR

Pre-Payment Penalty – Step Down, Flat, Yield Maintenance. 

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 680+ in order to qualify. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require an Executive Summary, any Current rent roll, PFS, a Tri-merge credit report, Past 3 years tax returns (personal and business if applicable), Past 3 years operating statements & current year to date operating statement, Business Debt Schedule, and Pictures of the property.

Special Notes

Borrower MUST close in a corporate entity. Most loans are full recourse.

Bank Alternative Programs

These programs are offered by lending institutions that do not fall under the usual structure of traditional banking institutions. These programs are perfect for those investors who fall short of the traditional lending guidelines of credit and income. However, with lower requirements for approval, the borrower may see that risk cause an increase in costs or additional paperwork and disclosures.

Property Types –

This funding source is available for Multifamily (5+ units), mixed-use, office, retail, warehouse, self-storage, automotive service (no old gas stations or underground storage tanks).

Territory – Nationwide except IL, MI, ND, NV, SD, TN, VT 

Available Loan Amounts – Up to $100K to $5 million

Use of Funds – Purchase, Refi, and Cash Out Refi

Seasoning – 2 yr on Refi

Asset Verification –

  • No asset verification on a refinance.
  • For a purchase the lender asks for 1 month of bank statements to prove the borrower has the down money and associated closing costs.
  • They do not source where the down money has come from.

Max LTV  –

  • 75% Multi-family & mixed-use
  • 70% LTV on all other property types
  • -5% for all cash-out
  • -5% for new borrower

Loan Terms – Up to 30 yr. 3 and 8 years fixed

Interest Rate –

  • Multifamily and Mixed use= 7.49%-9.12%.
  • Other property types= 7.99%-9.62%.
  • Borrower can buy rate down to 6.99%. 1 point fee = .50% rate reduction (Maximum 1%). 
  • Add 25 bps to rate on a refinance. 25 bps to deals in NY, PA, CT, NJ, FL.
  • Add 50 bps to the rate for loans under $250,000.

Debt Service Ratio – 1.25% (Deals under $500K no DSCR!)

Pre-Payment Penalty –

  • 8 year fixed= 3% of loan amount for first 5 years of loan.
  • 3 year fixed= 3% of loan amount for the fixed period of the loan.

Lender Fees – $2995 Closing Fee & $1500 Environmental Fee

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 650+ in order to qualify. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require an Executive Summary, Current rent roll, 1003, Tri-merge credit report, Past two years operating statements & current year to date operating statements, Pictures of property

Special Notes

  • NO TAX RETURNS REQUIRED
  • All cash out available
  • Seller second up to 80% CLTV
  • seller assist 3% of total loan amount
  • population requirement 25k or 25miles of 100,000 city.
  • No Bk’s or short sales for the past two years.

Property Types –

This funding source is available for Apartment buildings, mixed use, retail buildings, office buildings, warehouses, industrial buildings, auto repair shops (no gas stations), day cares, hotels, motels, mobile home parks, motels, hotels, bed and breakfasts, funeral homes, 2-4 unit investment properties.

  • Can do churches as long as the property does not look like church
  • No Auto Sales/Salvage Yards
  • No construction
  • No Gas Stations or properties that have old tanks
  • No Boarding Houses,
  • No Raw Land
  • No properties with environmental concerns
  • NO Single Family Residences

Non-Profit Program

Lender has a non-profit program that does not require a PG. They can lend on commercial property types where non-profits are ran out of, such as a YMCA, etc, but the lender cannot lend on actual church buildings for this program.

Territory – Nationwide except  AL, AK, HI, WV, VT, NV, MI, ND. Cook County, IL!

Available Loan Amounts – Up to $25K to $1 million

Minimum Property Value – $75,000

Use of Funds – Purchase, Refi, and Cash Out Refi

Seasoning –

Lender requires 2 years on a refinance. If the borrower needs a loan before that they will only receive 70% loan to cost. The lender will only lend 70% of the initial purchase price, plus 70% of renovations that can be proved with receipts

Max LTV  – 70%

Loan Terms –

  • Over $100,000 – Fully fixed 25 Year
  • Under $100,000 – 15 year amortization

Interest Rate –

  • 6.5% to 11%
  • 8.25% for core 25 year program

Debt Service Ratio – 1.25%

Pre-Payment Penalty –

  • 5% of loan amount for first 5 years of loan.
  • Then step down 5% 4% 3% 2% 1% next five years.

Lender Fees – 1 point

Closing Time Frame – 2 to 3 weeks average

Credit Requirements –

This program is very useful for those with damaged credit. However, most lenders in this category will still require a FICO® score of 600+ in order to qualify. Scores below 600 could be accepted on a case by case basis if the borrower can provide a STRONG letter of explination. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require an Executive Summary, Current rent roll, 1003, Tri-merge credit report, Past two years operating statements & current year to date operating statements, Pictures of property

Special Notes

  • Lender services their own loans
  • No Mortgage Lates on property

Special

No income verification, all cash out available. CLTV’s considered up to 80% on a case-by-case basis. Personal guarantees are required on all loans, besides the non-profit program. No Bk’s or short sales for the past two years.

Property Types –

This funding source is available for Office, Retail, Industrial, Self-Storage, Single Tenant, Mixed Use, Mobile Home Parks, MF 5+, portfolio of SFR’s

  • Each property value in the portfolio must be equal to or grater than $100,000
  • Minimum loan of $500,000
  • Properties must be in the same state & same general area
  • No cannabis stores
  • Adult stores are ok

Territory – Nationwide except  ND, SD, AK

Borrower Requirement –

Borrower must own primary residence on the 1-4 unit deals. For a purchase of a rental property, borrower needs to show they have owned a rental property in the past, no limit on past.

Available Loan Amounts – Up to $200K to $5 million

Use of Funds – Purchase, Refi, and Cash Out Refi

Seasoning –

Lender requires 12 months on a refinance. If borrow needs to refinance before that, the LTV will be reduced and the lender cannot lend off the fair market value

Liquidity Requirement –

Lender typically wants to see a minimum of 3 months of mortgage payments in the company bank account but this requirement can be waived if there is significant cash going out to the borrower at closing.

Max LTV  –

  • MF properties – 75% to 80%
  • 1-4 unit investment properties – 75% to 80%
  • all other commercial property types – 65% to 75%
  • LTV also depends on the documentation the borrower submits

Loan Terms – 5, 7, and 10 Yr

Amortization – 30 Yr

Interest Rate –

  • Range from 6%-7% on full doc loans (3 years of tax returns and 6 months of bank statements)
  • 6.50%-9% on loans with no tax returns but 3 months of bank statements
  • 7.5%-10% on loans with no tax returns or bank statements required, (subject to market conditions).

Debt Service Ratio –

  • 1.10x on 1-4 unit investment properties
  • 1.25 on commercial properties.

Pre-Payment Penalty –

  • Commercial Properties – step down 5% 4% 3% 2% 1% 
  • 1-4 Unit Investment Properties – step down 3% 2% 1%

Lender Fees – 1.5 points

Credit Requirements –

This program is very useful for those with damaged credit. However, most lenders in this category will still require a FICO® score of 600+ in order to qualify. Scores below 600 could be accepted on a case by case basis if the borrower can provide a STRONG letter of explination. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Required Documents

These lenders will typically require Loan Registration Form, Rent Roll, PFS, Tri Merge Credit Report, 3 years of most recent Personal and Business Taxes, past 3 years of I&E or P&L reports, Current year-to-date P&L or I&E, pictures of property.

Special Notes

Lender can potentially blanket 1-4 unit investment properties and investment properties as long as properties are in the same state and area. All commercial + resi portfolios, must have 5 doors, has to be 100k value per property. Can mix refi and purchase. Can mix the commercial and the 1-4 units on a blanket

Lender can work with Foreign Nationals but they must already own property here.

This lender offers a stated income program and a low doc program, but rates and terms are determined on the documentation the borrower can submit. A payment plan with the IRS is okay as long as it is explained properly. Bk’s are typically not allowed for 2 years. Lender can pay off tax/State liens with cash out!

Special

Lender offers 1 program for bank alternate customers and 2 programs for bankable alternate loans.

Property Types –

This funding source is only available for 1-4 unit investment properties, SFR, 2-4 Unit Properties, FNME Warrantable Condos, and Townhomes. They do not lend on modular homes.

Property Value –

Property must be worth at least $75k (each property). Lender does offer blanket loans but they need 2+ properties in order to blanket. On blanket loans the total loan amount must be 50k or greater, property value must be 60k or greater on each property. Properties must be in same state in order to blanket

Territory – Nationwide except NV, ID, MT, ND, SD, NH & ME

Available Loan Amounts – $60K to $5 million

Use of Funds – Purchase, Refi, Cash Out Refi

Closing Time Frame – 30 to 45 days

Max LTV  –

  • Up to 75% LTV If fico is over 700.
  • Fico under 700 LTV is capped at 70%.
  • Properties valued less than $110k – up to 70% LTV (must meet DSCR requirement)

Loan Terms –

  • 30 year amortization.
  • Fixed for 5 years, after that interest rate adjusts.
  • Lender also offers a 10-year and a full 30-year fixed option!

Interest Rate – 5.25% to 7.15% (subject to property type & market conditions)

Debt Service Ratio – 1.3 DSCR

Appraisal Cost – $500-$600 per property

Pre-Payment Penalty – Step down for five years 5%, 4%, 3%, 2%, 1%

Lender Points – 2 points plus $500 processing fee

Seasoning – 6 Months

Reserve Requirements –

Loans over $1M requires borrower to have at least 10% of loan amount in reserves. Loans under $1M require 6 months of PITI payments in reserve as well as adequate funds to pay the first 3 months PITI upfront. First 3 months of PITI are collected upfront at closing and go towards the first 3 months of mortgage payments. The borrower will not make mortgage payments for the first 3 months.

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 660+ in order to qualify. Borrower must be free of BKs for at least 4 years and have no foreclosures, short sales, or deed in lieu for the past 3 years. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Special –

  • Tax returns are requested but they are not underwritten off of.
  • Property must be fully rehabbed and ready to rent 
  • Lender uses 1007 market rents, so loan can close before the property is fully rented out.
  • Borrower has 60 days after closing to secure a lease.
  • Borrower MUST close in a corporate entity.
  • Borrower must own their own home.

Property Types –

  • Single Family Residence
  • 2-4 unit
  • condo
  • townhome
  • Planned Unit Development
  • Manufactured less that 20 units

Territory – Nationwide except ID, UT, ND, SD, VT

Available Loan Amounts – $50k and up

Property Value – There is no mininum property value, but total loan amount between all properties must be 50k

Use of Funds – Purchase, Refi, and Cash Out Refi

Seasoning – 3 months. Must be rehabbed and rented out

Max LTV  –

  • 75% max.
  • 0 to 3 months – 80% LTC (purchase price plus rehab) loan amount limit
  • 3 months to 12 months – 90% LTC (purchase price plus rehab) loan amount limit
  • More than 12 months- no LTC limit
  • For properties owned 12 months or less, LTC limit can be waived if DSCR is 1.5 or higher and borrowers credit is 680 or better

Loan Terms –

  • 3-year-fixed (interest only option), 5, 10, or 30-year fixed options
  • All 30-year-Amortizations

Interest Rate – 6.625% to 8.2% (subject to property type & market conditions)

Debt Service Ratio – 1.25 DSCR

Lender Points – 1 to 2.5 depending on leveraged amount

Closing Time Frame: 45-60 days

Appraisal Cost –

  • 1-4 Unit Properties – $500 to $600
  • Commercial Properties – $3,000+

Pre-Payment Penalty – 5 year Step Down (5% 4% 3% 2% 1%)

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 620+ in order to qualify. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Special Notes –

Can be used as a portfolio/blanket loan as long as all properties are in the same town and state. Secondary financing is not permitted!

Property Types – 1 to 4 unit properties worth at least $100K

Territory – AL, CA, CO, CT, DC, FL, GA, HI, IL, IN, LA, MA, MD, MI, MN, MO, MS, NC, NJ, NY, OH, PA, SC, TN, TX, VA, VT (over 1 million loan amount) WA, WI, WV, WY

Available Loan Amounts – $75k to $2 million

Use of Funds – Purchase, Refi, and Cash Out Refi

Seasoning –

The below terms are always subject to the lender assigned LTV based off of the required new appraisal.

  • Less than 3 months – New loan must not exceed initial purchase price of property, plus the financing of closing costs, prepaid fees, and points on the new mortgage loan; subject to maximum LTV ratios for cash-out transaction on new appraised value.
  • 3 to 6 months – Loan amount must not exceed 90% LTC (based on initial acquisition cost plus documented improvements), DSCR must be > 1.15 and property must be leased.
  • 6 to 12 months – Loan amount must not exceed 100% LTC (based on initial acquisition cost plus documented improvements). DSCR must be > 1.15 and property must be leased
  • More than 12 months – Loan based off of new appraised value

Max LTV  – 75% to 80%

Reserve Requirements – 2 months of PITI

Loan Terms –

  • 3, 5, 7 year fixed
  • 15, or 30-year fixed options
  • Interest Only Options
  • All 30-year-Amortizations

Interest Rate – 5.5% to 8.5% 

  • Subject to property type & market conditions
  • Buyer Can buy down the rate by .5% for one point.

Debt Service Ratio – Variable DSCR

  • Typically 1.3
  • Can go below 1.0 with strong cash reserves and 700+ FICO
  • Un-leased properties are OK

Lender Points –

  • No Lender Points
  • Lender has a $1,450 underwriting fee, and $170 other nominal closing costs.
  • Can reduce interest rate by paying lender points if borrower wants.
  • $299 is taken upfront when offer is issued to run credit and background check on all members of the entity.

Appraisal Cost – $450-$750

Closing Time Frame – 30 to 45 days

Pre-Payment Penalty –

  • The borrower can choose their PPP 0-60 months.
  • 5%, 4%, 3%, 2%, 1%.
  • The interest rate is better the longer the PPP.

Credit Requirements –

Some small “dings” on the credit can be overlooked if the borrower can provide a letter of explination as to why the dings occurred. However, most lenders in this category will still require a FICO® score of 620+ in order to qualify. The borrower can have No mortgage lates in the past 12 months! No BK or FC in last 3 years. No Short Sales or Deeds In Lieu in last 2 years. In order to verify the credit scores, the lender will generally pull a tri-merged credit report and utilize the middle score. These scores will usually be a FICO® version 2 or 4 score so many of the newer score model changes such as lower impact of medical collections will not apply. Before applying for these programs, we highly recommend getting our FREE funding assessment by clicking HERE.

Special Notes –

  • Loans can only close in a corporate entity.
  • Secondary financing is not permitted.
  • As of right now this lender does not work with foreign nationals.
  • Lender may use 1007 market rents, so the loan can actually close before it is fully rented out unless it is a cash-out refinance.
  • If the borrower does not meet the lenders rental loan program requirements, this lender also has a hard money program they may qualify for.

Property Types – Residential investment properties only.

  • Single Family Residence (SFR’s can be vacant for this program)
  • Condo
  • Townhome
  • 2-4 units (Need to be 70% occupied to get into the permanent program)

Territory – Nationwide except Alaska, No Cook County Illinois (rest of state is fine), Michigan, Minnesota, Nevada, New Hampshire, North Dakota, South Dakota, Tennessee & Vermont.

Available Loan Amounts – $75k to $2 million

Use of Funds – Purchase, Refi, and Cash Out Refi

Seasoning – 2 years on a refinance.

Max LTV  –

  • 75% on a purchase
  • Max LTV is 70% on a refinance.
  • Max LTV is 65% for foreign investors. Investor must live in the United States full time, own a personal home here and file taxes here

Loan Terms –

  • 3 and 8-year fixed options
  • Up to 30-year Amortizations

Interest Rate – 7.24% to 9.24%.

  • Add .25 bps to the rate on a refinance
  • Add .25 bps to deals in NY, PA, CT, NJ, FL.

Debt Service Ratio –

  • THERE IS NO DSCR ANALYSIS DONE ON 1-4 UNIT INVESTMENT PROPERTIES.
  • THE LENDER WILL JUST GIVE THE BORROWER 70% OF THE APPRAISED VALUE ON A REFINANCE, AND 75% ON A PURCHASE. Due to this, this is a good program to put AIR BNB properties in.

Closing Time Frame – 30-45 days

Pre-Payment Penalty –

  • 8 year fixed = 3% of loan amount for first 5 years of loan
  • 3 year fixed = 3% of loan amount for the fixed period of loan

 

Special Notes –

NO TAX RETURNS REQUIRED! All cash out available, Seller second up to 80% CLTV, seller assist 3% of total loan amount, population requirement 25k or 25miles of 100,000 city. No bk’s or foreclosures for 2 years. No asset verification on a refinance. For a purchase the lender asks for 1 month of bank statements to prove the borrower has the down money and associated closing costs. They do not source where the down money has come from!

 

Asset Verification –

  • 1 month bank statement on a purchase
  • On a refinance, there is no bank statements needed
  • No reserve requirement needs to be met

Lender Fee – Closing fee of $2,000

FICO – 650+

Required Loan Docs –        Executive Summary, Current rent roll, 1003, Tri-merge credit report, leases on property, Pictures of property (inside and out).

Property Types – Only 1-4 unit investment properties. Property must be on less than 2 acres of land.

Territory – AL, AR, CA, CO, CT, D.C., FL, GA, IA, IL (Chicago 125k min property value for a SFR, $75k a door for 2-4 units), IN, KY, LA, MA, MD (Baltimore 100k min property value), ME, MI (Can’t do Detroit & Flint) MO, MS, MT, NC, NH, NJ, NM, NY, OH (In Cuyahoga County including Cleveland, Dayton property needs to be worth $150,000 or more), OK, PA (Philadelphia 100k min property value), SC, TN, TX, UT, VA, WA, WI, WV, WY.

Available Loan Amounts – $45K to 2 Million

Property Value –

  • Each property must be worth at least $75k
  • On a blanket loan each property has to be worth 75k as well, need 3 properties to blanket
  • Blankets loans $250,000
  • Can only blanket refinance transactions
  • Loan amount per property has to be $45,000+ each

Use of Funds – Purchase, Refinance, Cash-Out Refinance

Seasoning – ONLY ONE MONTH!

Max LTV –

  • 75% domestic borrowers.
  • 70% LTV if this is a refinance and borrower has owned property less than 12 months.
  • With 700+ fico, and if the borrower owns 5+ rental properties, they can get a 75% LTV prior to the 12 months!

Loan Terms –

  • 30-year amortization
  • 7-year fixed option
  • Full 30-year fixed option

Interest Rate – 6.5% – 8.5%

  • Borrower can also buy the rate down now, for every point it takes the interest rate down .30 bps.

Debt Service Ratio – 1.2

Lender Points –

  • 2 points or $3,500 (whichever higher) on loan amounts under $175,000.
  • Loans over $175,000 the lender charges 2 points.
  • Lender also has a $1,645 underwriting fee.

Closing Time Frame – 30 business days

Appraisal Cost – $500-$600 per property

Pre-Payment Penalty –

  • 5% for 5 years if you choose the 7 year fixed
  • 5% for 5 years if you choose the 30 year fixed
  • All PPP’s are a step down
  • If you want to raise the rate a little the lender will offer a 3 year PPP.

Special Notes –

Loans can close corporate entity or the borrowers personal name. Can be used as a portfolio/blanket loan as long as all properties are in the same town and state. Need 3 properties in order to blanket and loan amount must be $250,0000 or higher for blanket. Lender will only blanket on a refinance, not a purchase! Secondary financing is not permitted. As of right now this lender does not work with foreign nationals. Lender goes off of 1007 market rents, so the loan can actually close before it is fully rented out.

FICO – 660 + (Mid Score needs to be 660 or higher). No mortgage lates in the past 12 months!

Property Types –

  • 1-4 unit investment properties
  • Single Family Residence
  • 2-4 Unit Properties
  • Planned Unit Development
  • Condos
  • Townhomes

Territory – Nationwide besides Alaska, North Dakota, South Dakota, Vermont, Oregon, Nevada and Utah.

Available Loan Amounts – $75K to 2 Million

Property Value – Property must be worth at least $75k (each property). Lender does offer blanket loans but they need 5+ properties in order to blanket!

Use of Funds – Purchase, Refi, Cash-Out Refi

Seasoning – 6 months

Max LTV –

  • 80% on purchase
  • 75% on a refinance

Loan Terms –

  • 30 year amortization
  • 3, 5, 7 and a full 30-year fixed option

Interest Rate – 6.48%-9.58%

Debt Service Ratio – 1.25 (No DSCR analysis performed for borrowers with 640 or higher! If no DSCR analysis is being down add .60 bps to the rate.)

Lender Points – Lender has no points! They only charge a $1,495 closing fee (per property)!

Closing Time Frame – 30 days

Appraisal Cost – $500-$600 per property

Pre-Payment Penalty – Yield Maintenance

FICO – 720+  (Lender can do down to 620 but LTV will severely drop!)

Reserves – Borrower must have 6 months of mortgage payments on hand prior to funding.

Experience – Borrower needs to own their own home and have 2 other investment properties.

Special –

Works with foreign nationals. Can be used as a blanket loan if properties are in same general cities and state. Need 5 properties to blanket! Deals over 1M require 2 appraisals. Borrower cannot have any BK’s or mortgage lates in the past 3 years. No tax returns are needed! Property must be fully rehabbed and ready to rent! Lender goes off of 1007 market rents, so the loan can actually close before it is fully rented out, but that reduces LTV to 60%.

Property Types –

  • Single Family Residence
  • Duplex
  • Triplex
  • 4-unit
  • Townhouse
  • Manufactured 5-20 units.

Territory – Nationwide Except North Dakota, South Dakota, Alaska & Hawaii

Available Loan Amounts – $700k to $50M

  • Lender also requires at least 7 units in the loan

Property Value – $50k for 75% LTV, the lender will not currently lend on properties at all that are under a 50k value.

Use of Funds – Purchase, Refi, Cash-Out Refi

Seasoning – After 90 days of ownership this program will lend off full appraised value

Max LTV  – Up to 75% on stabilized, leased properties (for foreign nationals & US Citizens). See details about Fico above.

Loan Terms –

  • 30 Years Amortization
  • Fully fixed for 30 years

Interest Rate – 5-6% for Fixed Period

Debt Service Ratio – 1.15% ** Interest only available at 70% LTV and below, 670 score needed

Lender Fee – 1 point

Pre-payment Penalty – Step down for 3 years 3%, 2%, 1%

Occupancy –

  • 10 or more doors = 90%
  • 5-9 doors = 80%
  • Multi-unit properties= 85%

FICO –   Recourse options: 680 fico = max 75% LTV. 670 fico = max 70% LTV. 660 fico = 65% LTV. Non-Recourse options:  min. credit score is 620 for US citizens. LTV for Non-recourse will be based on overall credit/loan profile. All loans to foreign nationals are considered non-recourse

Credit –  Full tri-merge credit report. No Bk’s or foreclosures in past 2 yrs.

Special –

Cannot lend on manufactured housing. Work with foreign nationals. Release of an individual property will be permitted upon prepayment by borrower of 115% of the allocated loan amount tied to the specific property. Section 8 housing allowed. Loan is assumable with lender approval with a fee of 10k or 1% of loan balance (whichever is higher). No income verification for loans under 2 million. Substitution clause – the borrower could sub out up to 20% of the portfolio with similar properties (same value or better and same rent or better) without incurring the prepayment penalty – now for this option you add .25 to the 5-year term or .15 to the rate on the 10-year option.

Required Loan Docs –

 Executive Summary, Data Tape, PFS, Loan application, past two years tax returns on deals above 2 million (personal and business if applicable), Leases on all properties, Pictures of property, Tri-merge credit report, all corporate docs on new corporate entity that will be formed.

Rehab & Bridge Programs

These programs are shorter term loans that can serve a couple of purposes. They may cover the financing needed for a flip or rehab project, or it may serve to secure financing between the purchase of a new property before selling an existing property.

Property Types – 1-4 unit investment properties! This includes Single Family Homes, 2-units, 3-units, 4-units, condos and town homes. Multifamily properties from 5-30 units.

Territory – Nationwide

Available Loan Amounts – $1 million-7.5 Million

Use of Funds – Purchase & Rehab

Max LTV – Lender will finance generally 80% of the total project cost as long as the loan amount does not exceed 65% of the ARV. For strong and repeat borrower the lender can financing 85% of the total project cost; final loan amount cannot exceed 70% of the ARV (After Repair Value).

Loan Terms – 9-12 months, interest only

Interest Rate –10-13%; Lower interest rates are reserved for repeat borrowers.

Lender Points – 1.5 to 2 points

Closing Time Frame – 1-2 weeks

Pre-Payment Penalty – None!

Experience Verification – Borrower needs to have closed at least 3 deals in the past year. Borrower should be a very active real estate investor.

Other Borrower Qualifications – Borrower must always maintain 20% liquidity of the line in bank accounts. Minimum $250,000 Net Worth. No mortgage lates in the past year. No bk’s or foreclosures ever!

Special –

This is a transactional line of credit where in order to draw from the credit line a property must be identified and borrower needs to be in a purchase and sales agreement. A mortgage lien will be placed against the property identified. The line is based off of a 1 to 5 ratio. If the borrower has $100,000 in their bank accounts, lender will assign a $500,000 line of credit for their future deals.

FICO – 650+

Property Types –

  • 1-4 unit investment properties
  • MF (5+)
  • Office
  • Retail
  • Mixed-use
  • Strip center
  • Ware house
  • Light industrial
  • Improved land 50% LTV.

Territory – Nationwide besides AK, CA, NV, AZ, MT, ND, SD, IL, MI, TN, AL, VT, NH, MA & NJ

Available Loan Amounts – $250,000- 5 Million (lender will go higher on a case-by-case basis)

Use of Funds – Purchase, Refinance and Refi cash out.

Max LTV  – 65%

Loan Terms – 1-3 years, interest only

Interest Rate – 10%

Lender Points – 4 points

Closing Time Frame – 3 weeks

Pre-Payment Penalty – No PPP

Extra Notes About Program –

Lender will cross collateralize other properties to make the deal work. Lender will work with foreign nationals. This is an extremely low doc program; Lender does not ask for tax returns or income verification from the borrower.

FICO – No minimum fico score; but if the borrowers fico is very low the lender needs to understand why.

Property Types – 1-4 unit investment properties! This includes Single Family Homes, 2-units, 3-units, 4-units, condos and town homes, though HOAs are not preferred.

Territory – Oklahoma, Kansas, Colorado, Ohio, Washington DC, Maryland, Virginia, Indiana, Minnesota, Missouri, Florida, Georgia, Illinois, & North Carolina.

Available Loan Amounts – $100,000-$750,000 for the 100% program, and up to $2 million for the 25% down program. Over $2 million is a possibility on a case-by-case basis.

Use of Funds – Purchase & Rehab, Refinance and Rehab, Ground up construction on a case-by-case basis.

Max LTV  –

  • Lender will generally finance 75% of the purchase price, loan capped at 70% of the ARV.
  • Lender also offers a 100% financing program, which is capped at 70% ARV as well.
  • Broker fee, lender fee, title insurance and property insurance can be wrapped into the 100% program as long as the total loan amount does not exceed 70% of the ARV of the property.

Loan Terms – 1 day to 12 months, longer terms available on a case-by-case basis.

Interest Rate – 9-14% depending on borrower’s experience, fico, number of deals they do and the leverage the borrower is requesting. Lender offers 4 different programs. The 100% financing product ranges from 12-14% with 3 lender points. The 75% LTV rehab program starts at 10% and comes with 2 lender points.

Lender Points – 2-3 Lender Points, depending on program. Lender also has a $995 document fee. All fees are paid at closing. Only the appraisal is paid for upfront.

Closing Time Frame – 2-3 weeks for initial borrowers, much faster for repeat borrowers, only limited by how quickly the ‘subject to’ appraisal can be done.

Pre-Payment Penalty – None

Experience Requirement –

  • Borrower must have bought, rehabbed and exited at least two deals in the past 24 months (verified by HUDs and Scopes being submitted).
  • Borrower must have recent ground up construction experience in past 24 months to receive a ground up construction loan.

Asset Verification – Last 2 months of bank statements and last year of tax return.

Liquidity Requirement –  Borrower must show solid reserves on hand for the 100% financing product, there is no exact reserve requirement for the 3 other programs they offer.

Construction draws – Released to borrower upon successful work completion, requires on-site inspection, $150 avg. draw fee.

Special –

Borrower must close in a business entity. Lender does background checks on all borrowers. Lender is currently not working with foreign nationals, but would discuss on a case-by-case basis. For the 100% Rehab program, the lender does an up-front draw at close! Again, borrower must have liquidity to qualify for that program! The 100% Rehab program may require that the borrower reserves 6 months of interest only payments, depending on financial strength.

Extra –

Lender must be 1st position and will not allow a 2nd position lender behind them! All borrowers must personally guarantee the loan. If there are two members in an LLC, one may be underwritten as the primary borrower, but both members will still need to sign the personal guarantee.

Fico –

  • 600+ for 25% down of ‘as is value’ and max 70% LTV of ARV.
  • 650+ for 100% financing rehab program.
  • Borrower cannot have a recent BK or a foreclosure

Loan Types – First mortgage or deed of trust

Available Loan Amounts – $300,000 – $25,000,000

Max LTV   – Up to 65% of Lender appraised value for bridge loans.

Loan to Cost   – For large rehab projects of pure commercial property types the lender will finance up to 65-70% of the total project costs. The borrow needs to come to the table with 30-35% of the total project cost plus be liquid for all closing costs.

  • Loan Maturities – 6 to 36 months; extensions available.

  • Loan Terms – Typical loan is 12 – 24 months, 12% interest rate.

    • Third Party reports must be in and approved by Lender prior to closing.  Appraisal service can usually accommodate faster turn times but charge extra for it. Depending on what the borrower wants to pay for appraisal this program can close in around 3 weeks.
  • Amortization – Interest only for maturities less than 36 months

  • Loan Purposes – Purchase, refinances (rate/term & cash-out), capital improvements, ground up construction and other opportunistic situations.

  •  

    Property Types – Non-owner occupied residential (1-4 unit), industrial, multi-family, mixed-use, warehouse, office, funeral homes, retail, hotel, motel, churches (limited amount), and gas stations. This program does not lend against raw land. No MHPs or Golf courses.

  • Territory – United States. Does not lend in any place where the city government has collapsed or gone bankrupt they avoid.

  • Lender Origination Fee –  1-5%

  • Interest Rate – 12-14%

  • Will cross collateralize properties

  • Deposit Amount – Enough for appraisal, title, and legal. If the loan doesn’t close, any unused deposit amount will be returned.

    • Docs Required –

      • 2 years of tax returns (personal and business), rent roll, Tri-merge credit report, 2 years of P&L Statements or I&E statements, Current year-to-date I&E or P&L, borrower real estate resume, pro-forma on property (if applicable), proof of down money on deal.

Territory – Nationwide besides MN, OR, SD & UT

Available Loan Amounts – $50K – 2.5 million

Max LTV   – On bridge loans the lender typically will finance 65% of the purchase price. Borrower must come with the remaining down money plus be liquid for other 3rd party closing costs.

Loan To Cost –  Will fund up to 80-85% of the purchase price & 100% of the renovations. As long as the loan amount does not exceed 75% of the ARV (after repair value) of the property.

On a refinance rehab deal, this lender will offer the same terms as a purchase transaction, as long as the property was bought in 90 days or less.

Loan Terms –  Typically 12 Months

Interest Rate –  9.99-10.99%

Lender Points –  2 points

Closing Time Frame – Typically 2-3 weeks.

Pre-Payment Penalty – None

Fico – 630+

Collateral – Non-Owner Occupied Real Estate Only for 1-4 unit investment properties. Collateralized property must be in the same state.

$995 legal fee paid when commitment is issued.

Property Types –

  • MF (5+)
  • Office
  • Retail. Manufactured Home Communities
  • Industrial
  • R&D Flex
  • Self-Storage
  • Hospitality (other assets considered on a case-by-case basis).
  • Lender prefers investor versus owner-occupied properties.

Territory – Nationwide

Available Load Amounts – 1- 20 Million (3-15 million is sweet spot)

Use of Funds – Purchase, Refi and Refi cash out.

Max LTV ⊛ –  75% (can go off of appraised value instead of purchase price, case-by-case). Will consider other lender’s appraisals.

Loan Terms – 1-3 years, interest only.

Interest Rate – 7.75% +

Lender Points – 2 points

Closing Time Frame – 2-3 weeks

Pre-Payment Penalty – 12-month yield maintenance (negotiable shorter based on deal strength and business plan)

Fico –  No minimum fico score; but if the borrowers fico is very low the lender needs to understand why.

DSCR Analysis –  Lender likes to see 1.05%

Foreign Nationals – Not as of right now

Extra Notes About Program –

Storied loans, partner buy-outs, can do cash out. Loan can provide funds for rehab, tenant installation and/or interest reserve. Lender does not like 100% vacant properties. Should be at least 50% occupancy to make deal work. No ground up construction. No land deals. Lender must always be first position and does not allow a 2nd behind them! Can potentially deal with light liquidity if mortgage payments on deal are able to be escrowed. Loans are preferred to be non-recourse with standard carve outs.

Process – 

Docs needed to provide LOI/Quote: Rent roll, summary (need borrower’s business plan/exit strategy), operating statements (current year to date plus prior 2 years), PFS, credit background, borrower bio/experience with property and managing  commercial real estate.

Property Types –  Only 1-4 unit investment properties! This includes Single Family Homes, 2-units, 3-units, 4-units, condos (with HOA approval) and town homes. Condo Conversions Welcomed.

Territory – AL, CA, CO, CT, DC, FL, GA, HI, IL, IN, LA, MA, MD, MI, MN, MO, MS, NC, NJ, NY, OH, PA, SC, TN, TX, VA, VT (over 1 million loan amount) WA, WI, WV, WY

Available Loan Amounts – $75K to $2.5 Million

Use of Funds – Purchase, Refinance, Cash-Out Refinance & Rehab, Purchase & Rehab

Max LTV  / ARV –Lender typically finances 75% of the purchase price and 100% renovations (renovations are done in draws). The loan amount is capped at 75% ARV!

Debt Service Ratio:

Loan Terms – 9 – 24 months

Interest Rate – 8.5%-12% based on experience. (8.5% for platinum borrows in CA, FL & TX). (Min interest rate in NY, NJ & PA is 9.5%). Interest is charged on the full loan amount from day one.

Pre-Payment Penalty – None! On all loans lender requires at 3 months of mortgage payments to be made. If the Borrower wants to remove this, it will up the points by .50%

Asset verification – No asset verification required. Borrower must pre-pay first 3 months of mortgage payments at close.

Lender Points – 2-3. Lender also has a $999 closing fee. $199 is taken upfront when LOI is issued to run credit and background check.

Draw Fee – $200 a draw

Closing Time Frame – 14 days!

Fico – 600+ (mid score)

Special Notes –

This lender allows an upfront draw at closing, which is 5-25% (typically 10-15%) of the purchase price or as is value if property is already owned! All draws are in advance besides the last draw, which is 10% of the total rehab budgetFirst rehab draw cannot exceed lending over 100% of the purchase price. The leverage on the draw is based on the borrower’s experience Gold borrower: 5-9 fix and flips or fix and holds completed in past 36 months. Minimum 660 credit score. -85% of purchase price and 100% of rehab. Platinum borrower: At least 10 fix and flips or fix and holds completed in past 36 months. Minimum 680 credit score. First draw increased to get to 100% of the purchase price including the base loan. Purchase price can be less than the rehab amount for any borrower.

Borrower Experience –

Flip experience is based on sold properties in past 36 months that turned a profit. Current rentals properties can also count towards a borrowers experience but the lender will only consider cash-flowing rentals that they acquired over 12 months ago.

Extra –

This lender can finance wholesale fees!

Property Types – Only 1-4 unit investment properties! This includes Single Family Homes, 2-units, 3-units, 4-units, condos and town homes.

Territory – CO, KS, MO, TX, IN, IL, OH, TN, FL, NY, NJ, VA, MD, PA, NC, & SC. Lender likes to lend in major metro areas in these states.

Available Loan Amounts – 60K to $750k, lender can go higher on a case-to-case basis. No min purchase price. Rehab can be more than purchase price.

Use of Funds – Purchase & Rehab, Refinance & Rehab.

  • In a situation where a borrower purchased a property with cash recently and is looking for rehab financing, Lender can finance the rehab and reimburse them a portion (sometimes all) of their cash that they used to purchase it.  This only applies to a recent, cash purchase.)

Max LTC / ARV –

Lender will fund 100% of the purchase, repairs, and soft costs (lender fee, broker fee and title insurance) on the deal as long as the loan amount does not exceed 70-75% of the After Repair Value of the property, which will be determined by an appraisal. Property/Hazard insurance is not included in the soft costs. ARV is determined on borrowers profile, where property is located & profit on the deal.

Loan Terms – 9 months interest only loan, will extend for 4 months for 1 point, sometimes no penalty at all to extend.

Interest Rate – Typically 10.5%

Closing Time Frame – Typically 2-3 weeks

Pre-Payment Penalty – None at all

Lender Points – 5 points. Broker can charge up to 2 points

Fico – 680+ NO EXCEPTIONS! Lender also looks at borrowers debt to income ratio.

Asset verification –

The borrower must have 10% of loan amount, in liquid cash, on hand in order to qualify for this program. Typically that is around $12,000 for most projects. IRA/401k funds will not count. Lender will ask for bank statements to prove this.

Cross Collateralization –

To qualify for this program and receive 100% financing lender will put a lien against the borrowers primary home. They can take a 2nd or 3rd position lien. If no lien against primary then the lender will not finance the deal 100% and borrower will have to come with down money and closing costs.

Experience – Prefer borrower to have experience but lender does consider first time rehabbers.

Draws –

Draws are dispersed to the borrower in $5,000.00 increments, unless otherwise approved, based on inspection progress. Each draw will require an inspection. Inspection fee is rolled into total loan amount.

Docs –  Tax returns, bank statements, pay stubs, lenders app, schedule of real estate owned, rehab budget.

Appraisals –  Lender will ask for realtor comps going into the deal; then they do order a full appraisal.

Special/Extra –

This lender does not do ground up construction! Lender has a $450 doc fee that is also rolled into loan. Borrower will pay interest on the loan amount at that time/what they draw down on. Do not lend to foreign nationals. If an entity has multiple members in it they all need to have 680+ credit, they all need to personally guarantee the loan, but only one lien against one members personal home has to happen. Lender typically likes borrowers to do one loan at a time with them, but if they have the cash reserves sometimes multiple loans at one time can happen.

Property Types – Only 1-4 unit investment properties for this particular rehab program.

  • Lender also offers lending programs for 1-4 unit ground up and multifamily ground as well as commercial bridge and renovation loans.

Territory – NJ, DE, MD, DC, VA, NC, SC, GA, FL

Available Loan Amounts – $100K +

Use of Funds – Purchase, Refinance, Cash-Out Refinance & Rehab

Max LTC – Lender will finance up to 80-90% of the purchase price and 100% of the construction (done in draws). Loan amount also cannot exceed 70% of the ARV (After repair value) of the property. LTC Limit: 92%.

Loan Terms – 6-18 months, interest only. Most terms are 12 months.

Interest Rate – 9-12%

  • Interest rate is determined by investors experience & the leverage they are requesting.

Closing Time Frame –

  • 10 days for 1-4 unit investment properties
  • 21-30 days for pure commercial properties

Pre-Payment Penalty – None!

Lender Points – 2-3 lender points (depending on program).

Fico –  No minimum

Asset verification – Depends on borrowers experience. 3 months of bank statements.

Appraisals – Needed in order to close

Special – This lender also has a ground up construction program for 1-4 unit investment properties and Multi-Unit (5+units) new construction.

  • 1-4 unit new construction general terms are:
    • 50% of lot acquisition
    • 100% of construction costs
    • Max ARV: 70%
    • LTC Limit: 85%
    • Will thoroughly vet out contractor and team.
  • Multi-Unit new construction
    • 50% of lot acquisition
    • 100% of construction costs
    • Max ARV: 65%
    • LTC Limit: 85%
    • Will thoroughly vet out contractor and team.

Lender also offers bridge and construction loans on commercial properties.

  • General rates and terms are:
    • 60% of lot acquisition
    • 100% of construction costs
    • Max ARV: 60%.
    • LTC Limit: 80%
    • Will thoroughly vet out contractor and team.

Extra – Lender works with new investors although prefers experience. Works with foreign nationals. Lender allows a second mortgage behind them. Lender also allows for JV agreements, seller financing, can cross collateralize for 100% financing.

Property Types – Only 1-4 unit investment properties

  • Purchase price of the property must be $100,000 or more

Territory – Nationwide with the exceptions of the following states: AK, CA, CO, HI, MS, ND, NV, OK, RI, VT, WV

Available Loan Amounts – $100,000-$350,000

Loan To Cost –  Lender will finance 80% of the purchase price and 100% of the rehab (rehab is disbursed in draws)

Loan Terms – 8 months (4 month extensions available)

Interest Rate –  9%

Lender Points – 1.5%

Closing Time Frame –  2 weeks

Extra – Interest and lender fees can be paid at the maturity of the loan. Full recourse loans. If rehabber is new the lender will count the GC’s rehabs as experience.

Ground Up Construction Loans

These programs are offered for investors looking to build properties from scratch.

Property Types – Only 1-4 unit investment properties

Territory – Nationwide with the exceptions of the following states: AK, CA, CO, HI, MS, ND, NV, OK, RI, VT, WV.

Available Loan Amounts – $75,000 – $350,000

Max LTV  – This lender will finance up to 80% of the construction costs (LTV is based on borrowers ground up experience since 2012. Lender will not count a borrowers ground up construction experience prior to 2012).

Loan Terms – 8 Months + 4 month extension (for every 4 month extension the borrower pays 1 point)

Interest Rate –

The applicable annual rate will be 4.99% for the first month, increasing 0.50% for each subsequent month, up to a maximum annual rate equal to the lesser of: (i) 7.99% and (ii) the maximum amount permitted under applicable law. Interest will accrue daily on the unpaid principal balance of the Loan. Accrual will be an actual/365 basis. The monthly Interest Rate schedule is tied to the date of the loan agreement. Default interest will be the lesser of: (i) 18% and (ii) the maximum amount permitted under applicable law.

Lender Points – 2 points (can be paid at the maturity of the loan!). Broker points must be paid at closing though.

Borrowers Fico – Lender is not fico driven but if the borrower has low fico this will negatively impact the leverage the lender will give them.

Equity Requirement from borrower – 8 – 25% of the construction cost (based on borrowers ground up experience). Lender will count the land purchase as part of the borrowers equity requirement into the project.

Resource –  Limited Recourse Possible. Lender will only lend to a US corporate entity; not to individuals.

Lot Purchase –

The lender wants the borrower to already own the land and have all approved plans and permits. The purchase of the lot will be counted towards the borrowers equity requirement. For repeat borrowers the lender will finance 50% of the lot purchase on a case-to-case basis.

Draws –

No cost to the borrower for the first 8 draws (Lender pays for the inspection fee). If borrower needs more than 8 draws, the lender can accommodate, each additional draw will cost the borrower $150.

Other –

Interest and fees can be paid off at maturity. Borrower only pays interest on amounts advanced at that time. Terms are different in TN. The borrower must buy the land first and get all approved plans and permits on the land. The lender will credit the land purchase as part of the borrowers equity requirement. Lender does not have a set liquidity requirement. LENDER WILL LEND ON MODULAR HOMES!

Property Types – Lender prefers to offer ground up construction loans on 1-4 unit investment properties but will consider commercial properties as well.

  • Owner and Non-Owner Occupied commercial properties are eligible

Territory – AK, AL, AR, CA, CO, CT, DE, FL, GA, HI, IA, ID, IN, KS, KY, MA, MD, ME, MI, MO, MS, MT, NC, NE, NJ, NM, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, WA, WY

Loan Terms – Up to 18 month terms available (longer terms available on an exception basis)

Available Loan Amounts – $100,000 to $2,500,000

Lender Points – 1.5-2 points (Based on the loan amount)

Loans are available to Borrowers with excellent to less than perfect credit

Flexible draw schedules

LTC – 75%

The borrower must be liquid for 25% of the total project cost (plus closing costs). If the purchase price is $100,000 and the construction is $100,000, the total project cost is $200,0000. The lender will fund 75% of the total project cost which is a loan amount of $150,000. The borrower must put the 25% of the total project cost towards the purchase price, so in this scenario 25% of the total project cost is $50,000, which needs to be put down on the purchase. Be advised the lender does not always offer a 75% LTC, sometimes it is only a 70% LTC

Rates – 8.45%-9.95% (Based on overall qualifications)

Land purchase may be included in the construction loan, up to 55% of the lot purchase price.

Cross collateralization allowed on other properties, if needed, for maximum or greater loan amounts

Interest only payments based on funds drawn

Requirements –

  • Available Loan Amounts – $100,000 loan amount minimum
  • All credit scores 680 or greater (from all parties)
  • No ‎mortgage lates in the past 12 months
  • No bankruptcy or foreclosures in the last 3 years
  • ‎Minimum liquidity of $50,000 or $250,000 net worth
  • ‎Borrower must verify one full year of work in the rehab business and one successfully newly constructed property‎

Territory – Nationwide with the exception of a few states

Loan Terms – 9 months, with optional 1 point, 3-month extension.

Interest Rate – 10-13%

Available Loan Amounts – $100,000 to 5 Million

Lender Points – Lender Typically charges 2 points for transactions under 1 Million

Closing Time Frame – Typically 30 days for a ground up construction loan. Can move faster if borrower is very motivated.

Pre-Payment Penalty – No prepayment penalty (3 months minimum interest).

This applies to the lenders lines of credit program as well

Lender will underwrite and close new construction loans for single family and multi‐family properties of up to 30 units.

The Borrower will contribute the land/lot, which must be fully entitled and developed (in accordance with the proposed project) with all required utilities and road infrastructure. The land must be free and clear of liens.

Maximum loan amount is the lesser of 80% of the total cost (land and construction) or 70% of completed value. At the lenders discretion they may require a partial or full repayment of the loan if all permits are not obtained within 4 months.

Minimum Liquidity – The Borrower shall have liquid assets and will verify 25% of construction expenses.

Lender will make new construction loans only to experienced Borrowers that have successfully completed at least 1 new construction project comparable to proposed project.

$995 processing/underwriting fee (includes appraisal); $135 doc fee

Property Types – Only 1-4 unit investment properties. No condominiums. Properties in rural areas, large acreage and properties with roads, which are not fully improved, may be considered with restrictive terms.

Territory – Nationwide besides AK and HI

Available Loan Amounts – $75,000 – No Max

Max ARV – This lender lends on the ARV (after repair value) of the property. If the home being built will be worth $400,000, 70% of that is a $280,000 loan amount.

Loan Terms – 1-3 years

Interest Rate – 11.5% typically

Lender Points – 5 points

Borrowers Fico –  Borrower must have acceptable personal and business credit. If credit is very low; lender needs an explanation as to why.

Lot Purchase – Can be financed on a case-by-case scenario

Experience Requirement –

Borrower must be a full time builder. Builder must have built and sold at least 5 homes. Builder must be the borrower. Home must be in the size and dollar range of builder’s history. Builder must have required licenses; if any.

Other –

Borrower can choose their own appraiser; must be a state certified appraiser! Lender does not require title insurance for ground up construction although on rehab loans they do. Construction must start immediately after closing

Rehab Loans –

This same lender also does rehab loans. They will lend up to 70% of the ARV on rehab loans. Rehab loans require title insurance. Borrower can still pick their own appraiser for the rehab loans as well.

Luxer One powers their business analytics with SaasLand. Luxer One powers their business analytics with SaasLand.
Luxer One powers their business analytics with SaasLand.

Luxer One powers their business analytics with SaasLand.

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Wisteria Ravenclaw

Director of Marketing & Communications

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