Frequently Asked Questions
An asset-based loan is a loan based on the value of the collateral (in this case, property) and not solely on the borrower’s credit or ability to pay. Banks have many guidelines around lending that make it nearly impossible for real estate investors to borrow money for the purpose of buying and fixing properties quickly; asset-based loans are the best alternative.
Rehab Loans
This loan is used to purchase a property that needs to be repaired or renovated before it’s sold, leased, or refinanced.
Single Family Rental Loans
This loan is used to purchase or refinance a single-family home of up to 4 units that are already leased and doesn't need to be fixed up.
Commercial Property Loans:
Retail, office, mixed-use, or multi-family
We can provide you with a Pre-Approval letter, which will be accepted in most cases for a Proof of Funds. Simply click on Apply Now at the top of the website, and fill out the Quick Application. One of our friendly customer service reps will call you for any missing details, and then provide your letter.
This may vary but typically we loan up to 70% of the After Repair Value (ARV) of the property.
Yes! As long as the contract price and the rehab cost are within the 70% LTV we can finance 100% of your rehab.
Escrow draws are on a reimbursement basis for work that has already been completed, and is on the original Scope of Work.
The borrower will submit an escrow draw request, including detailed pictures of the work that has been completed. Within 24 hours, one of our loan servicing specialists will review the request, and the borrower should receive the funds within 48 hours.
It is important to note that should a borrower submit inadequate documentation of the work to be completed, or already completed, this will delay the release of funds. Some escrow draws will require a site visit by one of our loan servicing specialists, which may also delay a draw request. A site visit can also be automatically scheduled as a result of poor documentation provided in an escrow draw request.
We don’t make any money on escrow draws. The cost of the draws support our loan servicing staff to ensure that the work is done properly and up to code.
We now allow real estate investors to purchase properties as an individual or as a business entity. As a business entity, you will need to provide your corporate (ie. LLC) documents. Then you will need to submit current interior and exterior pictures of the property. For Rehab/Flip loans, we also require a detailed scope of work and the contract, assignments, and amendments. Refinance loans require proof of ownership. All loans will require bank statements, but we do not require tax returns or W2’s.
We will require bank statements showing enough cash to cover closing costs, 25% of the ARV for rehab loans, and 3 months of payments for rental properties.
For a Fix & Flip loan, we will loan up to 90% of the purchase price plus 100% of the rehab and up to 70% of the ARV.
If you are looking for a long term loan (rental that doesn't need rehab), lending is based on loan-to-value, not loan-to-cost ratio. This allows you to finance the house 100% if you have been able to negotiate the purchase price low enough, within 70%.
We can lend on the property if it follows the following conditions:
1) It is a double wide that has been converted, NOT A SINGLE.
2) The title must have been surrendered to the county.
3) The property is permanently attached to the ground.
*If the property is on septic / well system we will only lend 65% LTV.*
Sí - hablamos español. Cuando llamás, preguntá por Victor.
It depends on your loan amount and loan type. At minimum, you will have to bring the points plus closing costs to closing.
Yes, we do pull your credit report, and that determines the rates and terms that you qualify for. It is a soft pull only, so it should not affect your credit score.
There is a minimum score of 600 for rehab and rental loans.
There is a minimum of 650 for commercial loans.
We lend in the following states**
Residential & Commercial Lending
- Alabama
- Arkansas
- Colorado
- Florida
- Georgia
- Indiana
- Iowa
- Idaho
- Kansas
- Kentucky
- Mississippi
- Missouri
- Oklahoma
- South Carolina
- North Carolina
- Tennessee
- Texas
- Utah
- Virginia
- Wisconsin
Commercial Lending Only
- Illinois
- Louisiana
- Ohio
- West Virginia
**We may not lend in certain areas or may have additional restrictions in certain areas.
The loan amount is determined by the ARV for a short-term fix and flip loan, and the As-Is Value for a long-term loan or rental loan.
The loan amount determination begins with your loan request. Our loan approval specialist will make every effort to help you receive the loan amount requested. Documentation is your best friend; a detailed scope of work (for rehab/flip loans) will assist the appraiser in determining an after-repair-value (ARV) that is the basis of our loan amount determinations. Any documentation you provide that can help us or an appraiser determine the ARV is crucial.
We send a package to you that you will receive the day after closing. It will include a copy of your closing packet (balloon note, deed of trust, warranty deed, HUD statement, etc.), and borrower coupons for the breakdown of your payments (payment due date, late charge information, interest amount, reserve (insurance amount), and monthly service charge).
Your payment will be due on the 1st or 15th of the month (this is based on what type of loan you are receiving, long-term or short-term), and we accept multiple payment methods including: Wire Transfer, ACH, FedEx Overnight, and checks.
The first step is to request your total balance due. You can do that by clicking on Forms at the top of our website, and then selecting Payoff Request. We accept cashiers check, wire, and personal checks. Note: all personal checks are held for 7 days.
You can also send an email or ask questions at [email protected]
Interest rate is the cost you will pay each year to borrow the money, expressed as a percentage of the loan amount. It does not reflect fees or any other charges you may have to pay for the loan.
Annual percentage rate (APR) is a broader measure of the cost to you of borrowing money, also expressed as a percentage rate. In general, the APR reflects not only the interest rate but also any points, fees and other charges that you pay to get the loan. For that reason, an APR is usually higher than the interest rate.
Points are a percentage of the loan amount that are charged as loan fees. Each point equals one percent of the loan amount.
