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Our
investor rehab loans are tailored towards the acquisition and rehab,
fix and flip investors. These investor rehab loans will take
into account the ARV (after repair value), and will cover the cost
of rehab and up to six months of interest reserves.
An overview of our
investor rehab loans:
Maximum loan to value - 60%, this is based on the after repair value
and is determined by comps, site visit and/or an appriasal.
Minimum cash contribution by the borrower - 20% of the purchase
price
Minimum loan amount - $50,000 for our investor rehab loans
Lending areas - California
Our
investor rehab loans in conjunction with the cash you bring to the
table will typically cover the purchase price, rehab costs, all
fees and up to six months of interest reserves.
Here is an overview of a typical rehab loan made under this program:
Purchase price: $100,000
After repair value: $175,000
Cost of rehab: $10,000
In
this situation, we would be able to put a rehab loan together for
$105,000 (60% of the after repair value). This would be a 12
month loan at 12.5% with no prepayment penalty.
Cash required to close would be approximately $21,000. The
borrower would have a builders control account of $10,000 from which
to draw for the rehab work to be done. This is an easy draw
process, and funds can be advanced for the work to avoid any out of
pocket costs associated with the rehab work to be done.
In
addition, there would be an interest reserve account set up to cover
payments for the first six months, so no payments due until month
seven. Monthly payments on this would be $1093.75. There
would be a balloon payment due at the end of 12 months for the full
principal balance at that time.
There is no prepayment penalty, so if the loan is paid off month
three, the borrower would receive the three months of unused
interest reserves back.
This is a typical transaction under our investor rehab loans
program and the terms may not apply to all borrowers. If you would like us to review your scenario, please
email us the following information:
Property address
Purchase price
Cost of rehab
Pictures of the property
Square footage and bedroom/bathroom count for the property
We
do not offer pre-qualifications or proof of funds letters.
Each deal is unique, and is underwritten individually, once you have
a property under contract, we will begin the loan process. In
addition to the property information, we will also require the
following documentation as we move forward:
Completed loan application (download
here)
Credit report
Resume
Purchase contract
Title/escrow information and prelim once available
Itemized cost breakdown of work to be done
Financial documentation showing cash available to close
Please feel free to contact us with any questions about our investor
rehab loans, or to run your scenario with us.
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