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Rehab/ Hard Money Information

Rehab / Hard Money Information

PROPERTY TYPE: Residential 1 - 4 Family, investor properties, condo conversions and small apartment buildings considered on a case by case basis.
LIEN POSITION: First mortgage mostly. We have some lenders that will consider a Second Mortgage.
STANDARD TERM: 6 months with monthly extensions up to 13 months.
ADVANCE RATE: 85% to 100% financing of the total project cost, plus interest, points and closing costs can be financed to reduce funds required at closing. Our partners will loan up to 75% of the After-Repaired-Value.
RENOVATION
FUNDS:		 Renovation funds are usually advanced in one to four draws, and wired directly to your account. Rehab portion of the loan typically not to exceed 150% of acquisition cost unless otherwise approved.
INTEREST: Some programs have no payments for up to three to six months. Some programs you make payments. It just depends on how it works out for you. All of the loans depend on the equity in the property. Borrower may finance interest in loan proceeds at closing. Typical Interest rates vary from % 9.9 to 18%. These aren't mortgages. Rates are higher due to the increased risk.
POINTS: Points can be rolled into loan balance at closing and may be partially rebated upon early payoff. Points may vary if borrower qualifies for one of our "Line of Credit" programs.
CLOSING COSTS : Expect up to $3500 of closing costs (i.e. title insurance, recording fees, etc.) as part of the loan proceeds. A portion of those closing costs can be financed.
GUARANTEE: Personal guarantee required on all programs.
QUALIFYING DOCUMENTS THAT MAY BE NEEDED:  Rehab Loan Application including:
(i) Two years of Tax Returns (both personal and business)
(ii) Three months of Bank Statements (both personal and business)
(iii) Current statements supporting liquid assets
(iv) Credit report (may be obtained by Lender)
LOAN DOCUMENTATION:
(For Each Loan)
Purchase Agreement

Summary of Rehab Work to be completed

Builders Risk Insurance (will not closed deal without insurance)

After-Repair-Value Appraisal (Obtained by Lender)

Title Policy (Obtained by Lender)

QUICK FUNDING: Once a borrower has been approved, funding of individual transactions is typically within two weeks. We have partners that can close in sooner time if all documents are received in a timely manner. There is usually no need to reapply for subsequent transactions.
>> Typical Scenarios