Our Loan Terms
- We customize our loans to satisfy the needs of our borrowing partners. Whether your priority is receiving the maximum amount of capital for your deal or obtaining the lowest possible rate, we work with you to arrange an optimal loan structure.
- We lend on non-owner-occupied (1-4 unit) residential investment properties for Fix N’ Flip, New Construction, and Long-Term Buy and Hold Rental investment strategies.
- We require a first lien security position on all our loans. No exceptions.
- Our loan terms are typically 6-12 months for Fix N’ Flip and New Construction and 30 years for Buy & Hold Rentals. All loans are fixed-rate products.
- Rates range between 1.0-3.0 points and 8.0-12.5% interest depending on borrower volume, project type, experience, and creditworthiness.
- We fund up to 90% of the purchase price and 100% of the rehab budget for certain transactions and project types.
- We typically consider loan amounts of $75,000 to $2,000,000 for a single project (including both the purchase price and the rehab budget). Exceptions are available for certain borrowers and deal types.
- We typically require a minimum credit score of 600 for Fix N’ Flip and New Construction and 650 for Buy & Hold Rental. Exceptions are available for certain borrowers and deal types.
- A valuation document may be required for each property that we underwrite and will be requested on an as-needed basis.
- We require our borrowing partners have legal representation as well as a business entity (LLC, partnership, S- Corporation, etc.) to serve as party to the loan. We do not transact loans with individuals.
Loan Programs & Terms
| Fix n’ Flip | New Construction | Buy & Hold Rental | |
|---|---|---|---|
Property Types | 1-4 unit family homes and condominiums | ||
Loan Size | $75,000 – $5,000,000 (including purchase and rehab) | ||
Lender Position | First lien required | ||
Amortization | Interest only (monthly) – balloon payment at maturity | Interest only (monthly) – balloon payment at maturity | 30-year amortizing |
Prepayment Penalty | None | None | 3% during year 1; 2% during year 2; 1% during year 3; 0% thereafter |
Rates | Starting from 8.0% | Starting from 11.0% | Starting from 6.5% |
Origination Fees | Starting from 1.0% | Starting from 2.0% | Starting from 1.5% |
Term | Up to 12 months | 12 months | 30 years |
Total Rehab Budget as % of purchase | < = 50% preferred, >50% considered case-by-case based on borrower experience and deal structure | No set threshold. Will be evaluated based on borrower experience, credit, and deal specifics | N/A |
Initial Loan to Acquisition Cost | Up to 90% of purchase price | Up to 85% of purchase price | Up to 85% of purchase price |
Rehab Funding | Up to 100% of rehab budget | Up to 100% of rehab budget | N/A |
Max After-Repair LTV | 75% | 70% (or 85% of cost basis, whichever is lower) | N/A |
Minimum FICO | 600 | 600 | 650 |
Appraisal (if necessary) | -For loans with no rehab budget: Interior BPO -For loans with a rehab component: “As-is” and ARV appraisal | As-is and ARV appraisal required | As-is appraisal and Market Rental Analysis |
Time to Close | As little as 48 hours | Within 21 days | As little as 48 hours |
Recourse | Personal Guarantee | ||
Ownership | LLC, Corporation, or other business entity | ||