Frequently Asked Questions
What will my loan cost?
Your rate and fees depend on the loan program, property, loan amount, and details of your project. Tell us about your deal, and we’ll provide a no-obligation quote so you can build financing costs into your plan.
You’ll understand the proposed costs and terms before deciding to move forward.
How do you decide whether to approve a loan?
For fix-and-flip and rental rehab loans, we focus primarily on the property, the renovation plan, and the value of the completed project. These programs don’t require the employment or personal income verification you might expect from a traditional lender.
Long-term rental loans have different requirements, including credit and rental income criteria. We’ll explain what applies to your loan and help you understand what we need to make a decision.
When will I receive my renovation funds?
That depends on your project and loan terms. For some smaller renovations, we may provide rehab funds at closing. Most projects use a draw schedule, which releases renovation funds in stages as agreed milestones are reached.
We’ll review your scope of work and explain how your funding will be released before you get started, so you can plan your renovation.
What do I need to apply?
For a renovation project, start with a clear picture of the property and your plans:
- Detailed interior and exterior photos
- A video walkthrough, if available
- Your purchase price and requested loan amount
- A detailed scope of work and renovation budget
- Your estimated after-repair value, or ARV
- Comparable property sales that support your estimate
Be specific about the work you plan to complete. Replacing countertops is a different project from fully renovating a kitchen, and those details help us evaluate your deal.
We’ll walk you through any additional documents needed for your loan program.
How much cash will I need at closing?
Your cash requirement depends on the purchase price, renovation budget, property value, loan terms, and closing expenses. Qualifying projects may receive financing for 100% of purchase and rehab costs, although some closing costs or other expenses may still be your responsibility.
For example, 65% of a $300,000 after-repair value is $195,000. With a $150,000 purchase price, that leaves up to $45,000 for renovation costs before accounting for fees and other loan expenses.
We’ll explain your loan structure and expected cash requirement before closing.
When do I pay the origination fee?
We can typically include the origination fee in your loan balance, reducing the amount you need to bring to closing. When financed this way, the fee is repaid as part of your loan payoff.
For example, a 3% origination fee on a $200,000 loan is $6,000. Adding that fee to the balance would bring the total note amount to $206,000.
We’ll explain your fee, total loan balance, and payment timing upfront.
What types of properties do you finance?
We primarily finance investment properties, including single-family homes for renovation and rental use. We also consider small multifamily properties, land, and small commercial projects based on the property and the deal.
Our loans are for investment purposes. We do not finance primary residences.
Tell us what you’re considering, and we’ll help you understand whether it fits an available loan program.
Can I borrow more than 65% of the property’s value?
For the renovation loans described above, we generally work within a limit of 65% of the property’s after-repair value. Additional collateral may allow us to consider a different structure.
For example, equity in another investment property could provide additional security through a second-position lien. We’ll review the properties and explain what may be possible.
Long-term rental loans have separate loan-to-value limits. We’ll help you understand which guidelines apply to your financing.