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Program #1:
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Loan Term/Maturity: Typically 9 months
Interest Rate: Prime plus 3% to Prime plus 6%
Closing Fee: 6% of loan amount
Processing fee: $300 to $500 for each project
Repayment: Interest only monthly. Principal due at maturity
Personal Gaurantees: Personal guarantees are required
Additional Collateral: Second mortgage as collateral typically required for new borrowers
that have completed fewer than five projects with us.
Items required: Completed questionnaire and items from the "information Requirements" forms.
Prior to closing: Title insurance, Hazard insurance, and survey .
Credit History: Typically require a mimimum Beacon/Fica
score of 625
Cash Flow: Borrowers must provide ecidence that they have sufficient escess cash flow to service interest payments.
Draws: Typically one to three draws will be scheduled for improvements. Each draw will require an inspection at a cost of 50$ to $100 each.
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Required Information:
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For First Loan and on an Annual Basis:
· Last three year end financial statements (Business Entities)
· Recent month end financial statements (Business Entities)
· Personal financial statement(s) of primary shareholder(s)
· Tax returns for last three years (Personal and Business if applicable)
· Description of completed rehab projects, including address, purchase price, value of improvements, sale price etc.
· Bank statements for last three months
· Rent roll of owned properties, inclusive of property address, date purchased, purchase price, current value, current lender(s), loan amounts outstanding, monthly rental income, monthly loan payments (indicate if PITI), and details regarding property being sold or purchased on land contract.
· Completed Rehabber Questionnaire
For Each Loan/Project:
· Description of subject target property
· Comparable sales to subject property
· List of improvements with associated costs
· Seller's name, address and phone number
· Fully executed Purchase Contract with all addendums
· Name, Phone Number and Contact of Title Company
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