Submitted by Naomi M on Sat, 05/31/2008 - 01:48.
Rehab Loans for Investors
Investors - Rehab financing is easy to obtain and hassle-free when you work with the right funding source
Make bargain-hunting for fixer-uppers a lot easier for yourself if you are targeting:
Get the financing you need to purchase and fix up small investment property for profit – fast – with funding in as little as 2 weeks.
If you can work with the following lending guidelines, you can be on your way to flipping distressed property for fast profits. Send me an email to request a Rehab Worksheet to obtain a Pre-approval.
Make bargain-hunting for fixer-uppers a lot easier for yourself if you are targeting:
- Single family residence
- Duplex
- Triplex
- Fourplex
- Condo conversion
- Small apartment building (considered on a case by case basis)
Get the financing you need to purchase and fix up small investment property for profit – fast – with funding in as little as 2 weeks.
If you can work with the following lending guidelines, you can be on your way to flipping distressed property for fast profits. Send me an email to request a Rehab Worksheet to obtain a Pre-approval.
| Lien position | First mortgage only | ||
| Business entity |
Title needs to be in a business name such as an LLC, not in personal name. An LLC is easy to form prior to close of escrow | ||
| Application process | Complete a simple worksheet about the project details to be pre-qualified. If the project and your qualifications meet the lending guidelines, next you can complete an application to obtain conditional approval. The application fee is $395. Get a Conditional Approval in 24 hours of submitting your application. | ||
| Renovation funds | Renovation funds are usually advanced in one to three draws and wired directly to your account. Rehab portion of the loan typically not to exceed 150% of acquisition cost unless otherwise approved. Reserved funds are available for 12 months and can be extended to 24 months. | ||
| Buying and negotiating leverage | Once approved, you will receive a Proof of Funds Letter to use when you make offers and thus can structure your offer without a loan contingency for greater negotiating power and can close in as little as 2 weeks. | ||
| Loan terms | » 6 month term with monthly extensions to 13 months
» 85% to 100% financing of purchase price + total project costs + loan costs up to $1,200 » 70% max ARV (After Repaired Value) » No payments for up to 6 months. Can be financed. » No prepayment penalty » Line of credit program for repeat customers » Can fund in 2 weeks from appraisal and docs |
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| Borrower qualifications | » Borrower needs minimum of $20k in total liquidity for every $100,000 you want to borrow: bank accts, CDs, securities, cash value of life insurance, secured credit; unused home equity line or other secured credit lines (not included are 401k or other retirement accts) » DTI ratio (debt to income) not to exceed 50% » Credit score min 640 to borrow 85-90% of projected costs » Credit score of 657 to borrow 95% of projected costs » Credit score of 700+ to borrow 100% of projected costs |
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| Document list |
» 2 yrs tax returns – per and bus
» 3 mo bank statements – personal and business » Current statements supporting liquid assets » Credit report » Purchase agreement » Summary of rehab work to be completed » Builder’s risk insurance » ARV appraisal - ordered by lender » Title policy - ordered by lender |
| States Currently Available for Rehab Loan | Not Available Yet | |
| Alabama Colorado Connecticut California Delaware Florida Georgia Illinois Indiana Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri |
New
Hampshire New Jersey New Mexico New York North Carolina Ohio Oklahoma Pennsylvania Rhode Island South Carolina Tennessee Texas Utah Virginia Washington Washington D.C. Wisconsin |
Arizona Arkansas Kansas Idaho Iowa Montana Nebraska Nevada North Dakota Oregon South Dakota Vermont West Virginia Wyoming |
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Commercial Property Purchase for your business operation - buy with just 10% down payment
