Close

Find import considerations and requirements to close below.

Terms

Initial terms are based on borrower estimates and market conditions near the application date. Final terms are based on third-party verification as well as prevailing rates and market risks at the time of underwriting.

For example, we order credit reports to verify credit scores, background reports to determine criminal histories, appraisals to assess values, public records to confirm experience, etc.

As such, all aspects of any loan may change and remain subject to Lendency’s underwriting and approval.

Origination Process

The origination process is a six-step procedure:

  1. Collecting necessary documents from the borrower, appraiser, and title company.

  2. Reviewing the complete file for conditional approval.

  3. Gathering additional documents to address any conditions.

  4. Reviewing the updated file to determine if the loan is clear to close.

  5. Coordinating the closing process with the title company.

  6. Finalizing the loan closing.

Processing begins after we receive a completed Contact Information form.

Be sure to provide all relevant information we need to place appraisal and title orders (e.g. purchase agreement, detailed SOW, settlement agent contact information, etc.) as soon as possible. For rehab loans, this should be at least 15 business days before your preferred closing date. For rental loans, at least 20 business days.

Documents

After processing begins, we periodically send updated emails with deal-specific document requirements.

Below are general requirements.

All Loans

Entity Borrowers

  • Certificate of Good Standing/Existence

  • Articles of Organization/Incorporation

  • Operating Agreement (LLCs) or Bylaws, Share Certificates and Share Ledger (Corporations)

  • EIN Letter

Purchases

  • Purchase Contract

Refinances

  • Settlement Statement from Purchase

Rehabs / Ground Up Construction

Foreign Nationals (Rehabs)

  • Social Security Number

  • Credit history and scores from at least two of the three credit bureaus (i.e. Experian, TransUnion and Equifax)

  • Proof of lawful residency in the U.S. during the term of the loan

Vertical and/or Horizontal Expansion

  • Architect Letter

Condo Conversions

  • Architect Letter

  • Feasibility Study

  • Legal Opinion Letter

  • Condo Questionnaire

Rentals

  • Fully Executed Lease Agreement

  • Automatic Payment Authorization (ACH) and Bank Verification (e.g. voided check) for Mortgage Payments

Condos

  • Condo Master Insurance

  • Condo Questionnaire

Multifamily (5+ Units)

  • Environmental Study

Ground-Up Construction

  • Budget Review

Costs

Lendency fees are shown in emails with terms and charged at closing.

Interest between the closing date and the end of the first month will be collected at closing.

For rehab loans, one (1) or more months of interest reserves will be collected at closing, depending on credit. Interest reserves will be held with the loan servicing company and applied towards monthly mortgage payments until exhausted. In the event of an early payoff, remaining interest reserves will reduce the payoff amount.

Third party fees, such as title, insurance, recording, valuations, and legal, are to be determined. Legal doc prep fees can be as high as $1,400, depending on the deal type and location of the subject property, and are determined by counsel. Contact your title and insurance companies to confirm their fees.

Other Important Considerations

All borrowers are encouraged to review our loan summaries for rehab loans, rental loans and ground-up construction loans, as applicable, as well as our ineligibility criteria.

Title insurance must provide a Gap Coverage Endorsement.

For rehab loans, we require a pledge of ownership interests, distributions, proceeds, and voting rights of the holding entity. For the rehab portion of the loan, we only finance hard costs and value-add soft costs (e.g. permit and contingency fees) in the scope of work.

For rental loan refinances, the property must be owned for at least six months to use as-is value (as opposed to purchase price) unless there was a significant rehab project, in which case three months of ownership may be approved.

Right to Receive Copy of Appraisal Report

The borrower has the right to receive a copy of any appraisal report or written valuation obtained on the dwelling offered as collateral at least three (3) business days before the loan closing unless this timing requirement is waived by the borrower.