Loan Parameters and Guideline Highlights
- Loans are typically short term (6 to 12 months) but can be up to 5 years, depending on loan type
- Cross collateral encouraged
- Personal guaranty must be signed for any loan made to an entity (Corporation, LLC, Trust, etc.)
- LTV's up to 85%, depending on loan type and collateral offered
- For all loans involving funding stages, a hold back is required (for both loan and borrower contributed funds). Funds for rehabilitation will be held back and released via progress payments as the project is completed and inspections are performed. If the loan requires a deposit from the borrower for a portion of the rehabilitation work, those funds must be deposited as of date of loan funding.
- For Fix and Flip loans, rehabilitation is expected to commence immediately upon loan origination and be completed within 75 days. Investors must have proven experience with rehab’s and flipping other properties. Reserves equal to the down payment plus 10-30% of the loan amount are required and must be verifiable.