Frequently Asked Questions?
How fast can we close in-house loans?
We can close in-house loans in 1-2 weeks. DSCR & Higher LTV Loans close in 3-4 weeks.
What is your maximum Loan to Value (LTV)?
We can lend up to 85% of the purchase price and 100% of repairs for experienced rehabbers with a 680 credit score.
What is the minimum credit score we will accept?
NO minimum credit score for in-house loans. We will lend with all Credit Scores but with a lower loan-to-value.
What are our loan origination fees?
Loan origination fees start at 2% of the loan amount and are higher based on credit and loan-to-value.
What are our Interest rates?
Rates depend on credit score, loan type and loan to value, call to get a competitive quote.
What types of properties will you lend on?
We currently only lend on non-owner-occupied single family, 2,3,4 units, town homes, multi family, and some commercial properties.
Our ideal property has 3 bedrooms, 1.5 bathrooms, and is located in a well maintained neighborhood. We prefer properties above 1,000 sf. We do not fund rural, or properties on busy streets or abutting industrial/commercial areas.
In what areas do we lend?
We currently lend both residential and multifamily investment properties. Our focus is properties throughout the Greater Chicagoland area including Southern Wisconsin and Northwest Indiana. Major cities in TX, GA, FL, TN.
What is your minimum loan amount?
Our minimum loan amount is usually $40,000.00. We occasionally fund smaller loans.
Is an appraisal required?
Yes for DSCR and loan to values above 65%
For our In house loans, we determine the after repaired value (ARV) of the subject property using a competitive market analysis or comparative market analysis (CMA). The CMA will use sold listings from the MLS to determine the estimated after repaired value (ARV). The comps used in the CMA will be from similar properties in terms of size, age, condition, construction, etc. within a radius of 0.5 miles from the subject property that have sold within the previous 3-12 months.
Do you charge prepayment penalties?
Yes we have a minimum pre- payment of four months interest. Your loan may be paid at any time with a prepayment penalty. The faster you rehab a property and sell or refinance it, the more profit you make.
Do you lend money for repairs?
Yes we lend money for repairs provided the total loan amount does not exceed 65% of the after repaired value (ARV) of the property. Rehab funds will be held in escrow and will be released in draws as you complete the renovations on your property. We do not provide any draw advances. The borrower is responsible for paying their contractors and materials.
Do you provide proof of funds letters?
Yes, provided you have been pre-approved by us.
Can anyone live in the house during the course of the loan?
No, we only lend on non-owner occupied properties.
Do you need to have a property under contract before applying for a loan?
No, we can pre-approve you for our loans prior to placing a property under contract.
Do you require a down payment?
Yes, depending upon the buyer’s credit and financial strength, we can finance up to 75% of the purchase price and we allow up to 15% seller seconds.
Can the points, closing costs, and interest be rolled into the loan?
Yes, you can roll in all closing costs except the Appraisal or CMA.
Are there any upfront fees? Application fees? Inspection fees?
We do not require any upfront fees, application fees. Once we have approved your loan, we need to pay for an Appraisal or a CMA inspection and the cost is due before inspection. After Inspection we will instruct our attorney to order a title search on the property and prepare closing documents.
Can we close with your attorney or do we require us to close with your attorney?
All loans will be closed with an approved title company or licensed attorney.
Revised 9/1/2024
