Rehab Loans

Below are some of the key components of our rehab loan program.

See ineligibility criteria here.

 

  • Loan

    • Amount: $50K to $3MM

    • Loan-to-Cost (Purchase): Up to 90%

    • Loan-to-Rehab Budget: Up to 100%

    • Loan-to-Value (After-Repair): Up to 70%

    • Type: Purchase or Refinance

    • Term: 12 months

    • Rate Type: Fixed

    • Payment Type: Interest Only Balloon

    • Payment Frequency: Monthly

    • Pre-Payment Penalty: None

    • Interest Reserves: 1-12 months, based on background/credit

    • Closing Time: Within 5 business days from full file receipt

    • Extension Term: Up to 12 months

  • Property

    • Type: SFR, Condo, 2-4 Units

    • Area: Urban, Suburban

    • Use: Residential, Non-Owner Occupied

    • Plan: Rehabilitation or Maintenance

    • Minimum Profit Potential (Sale Exit Strategy): $15K

    • Minimum DSCR (Refinance Exit Strategy): 1.2

    • Eligible States: AL, AR, CO, CT, DE, FL, GA, HI, IA, IL, IN, KS, KY, LA, MA, MD, ME, MO, MS, MT, NH, NM, OH, OK, SC, TX, WA, WI, WV, WY

  • Borrower

    • Type: Business Entity Only

    • Guarantor Credit Score: At least 600

    • Experience: If credit score >680, then none required. Otherwise, 3+ verifiable rehabs/sales of similar size, type and units as subject property during past 36 months (exceptions may be granted to current GC or real estate license holders)

    • Foreign Nationals: Need social security number, credit history, and scores from at least two of the three credit bureaus (i.e. Experian, TransUnion and Equifax). Also need proof of lawful residency in the U.S. during the term of the loan.

  • Fees

    • Lender Fees: 2% Origination Fee, $999 Service Fee (both collected at closing)

    • Third Party Fees: TBD; typical costs include title, insurance, recording, appraisal, property tax report, servicing set up, and legal. (Assume $500-700 for an appraisal before closing and $1,000-1,400 for legal doc prep at closing, depending on the location and deal type.) Wholesaler fees are capped at 20%, if applicable.

    • Rehab Draw Fees: $270 Inspection Fee and $30 Wire Fee (both collected per draw)