Private Money Lending F.A.Q.'S
Q.Do you lend on owner occupied houses? A:No, all financing is for investment purposes only and cannot be occupied by the borrower.
Q.What Documentation Is Required By The Borrower? A:We require 2 months bank statements, an authorized credit inquiry, corporation documentation and a credit application.
Q.Do You Provide Financing Of Renovation Costs? A:Yes, we will fund renovation costs by placing loan amounts in an escrow account and reimburse the borrower as renovations are completed.
Q.Is there a Minimum Credit Score? A:Yes, the minimum is 550. Lower credit scores may increase the loan origination fee.
Q.Is There A Prepayment Penalty? A:The term of the loans are 12 months, however, you can pay down or pay off the loan at anytime during the term without penalty.
Q.What is your maximum Loan to Value (LTV)? A:LTV can range up to 75% of the After Repair Value(ARV) of the property or up to 90% of the purchase price.
Q.Is An Appraisal Required For Every Transaction? A:No, however, some transactions may require an interior Broker Price Opinion (BPO) or appraisal.
Q.Are There Any Hidden Costs? A:In addition to the interest rate and the loan origination fee we charge $195 loan documentation fee and a $30 wire fee. There is no appraisal, survey, or inspection fee; which can save you up to $1,000 versus some of the competition.
Q.Will You Finance Second Position Loans? A:No, only 1st position loans will be made, refinances of existing loans can be done if values meet underwriting guidelines.