What is the maximum Loan to Value (LTV) ratio?
The maximum Loan-to-Value (LTV) in this case is 70% LTV and it is based on the after repair value (ARV) of the property. For example, if a property will be worth $150,000 after it has been repaired, the maximum loan provided is $105,000. This amount includes the purchase price, construction amount, closing costs, points, and the interest reserve for the term of the loan. If the cost exceeds the 70% LTV, the investor can fund the difference between the 70% and the amount needed in the form of a down payment at closing. For loan amounts above $375,000, the maximum loan to value is 68%LTV.

How do I calculate my maximum purchase price under the loan program?
The maximum LTV will be 70% which includes purchase costs, construction costs, closing costs, insurance, a six month interest reserve, and loan origination fees. In order for you to obtain 100% financing with no down payment, you can use this formula to calculate your maximum purchase offer. If your project costs exceed the formula below, a down payment will be necessary at closing for the overage.

After Repair Value x 70% - Construction Budget - Closing Costs = Maximum Purchase Price with no down payment necessary

Example: 150,000 ARV x 70% = $105,000
$105,000 - $15,000 Construction Costs = $90,000
$90,000 - $2,500 Closing Costs = $87,500 (Max Purchase Price with no down payment)

What is the duration of a loan?
These rehab loans are typically set up for a 6 month loan term. The term of new construction or commercial development loans terms will be negotiated on a case by case basis.

What types of properties will be funded?
The lender will fund any residential project that doesn’t exceed four units. Therefore, single families, townhouses, condos, duplexes, and 4-plexes are all eligible for funding. The lender will also entertain new construction and development loans on a deal by deal basis.

How and when are the construction funds released?
Construction funds are released on a weekly draw basis. The investor submits a draw request through the lender our website by 5PM each Tuesday and the properties are then inspected by a territory director to approve the draw requests. Upon a positive inspection, a deposit is made directly into your checking account every Friday. Therefore, there is no delay in receiving construction funds. Please note that if any permits are required on your property, the lender will require copies of final inspection certificates to be faxed to our office prior to receiving a final construction draw for that certain construction category.

What credit score must I have to receive a loan?
In order to qualify for the programs, the borrower must have a minimum middle credit score of 680 and be able to qualify for a conventional refinance mortgage to pay off their loan if they need to. Experience in real estate and/or construction is an added benefit but not required. The lender may pull your credit prior to each loan closing and you are required to provide a copy of your middle credit score at the pre-approval stage so that your credit score does not have to be pulled twice. You may obtain a copy of your credit report online.


Note: You need a 680 mid score BUT, if you have at least a 660, you can still still get approved if you want to go full doc.

How long does it take for a borrower to be pre-approved and what is the typical time frame for closing a loan?
The lender can pre-approve a borrower immediately upon receipt of the borrower's credit report (middle score) pulled within the last 3 months. Once a loan application has been submitted, your loan should close in approximately 10-20 days if all requested documents have been provided promptly by the borrower.

What is the advantage of using the funding that our lender provides?
Our lender finances 100% of the purchase, construction, and closing costs and we close loans very quickly (typically within 7-10 days from the date of application). Our loans require no monthly payments for the loan duration and we never charge pre-payment penalties. Some lenders will charge application fees, inspection fees, wiring fees, etc.
Our lender  we only charge you points and interest on the loan - No Junk Fees!
In addition, borrowers are allowed to do multiple projects at a time once a client has purchased one property and completed it successfully.

In what geographic areas will our lender provide funding? Loans are available in:

Virginia (Hampton Roads & Tidewater Area, Richmond, Petersburg, Hopewell, etc.)
Maryland (Prince Georges, Montgomery, Howard, Anne Arundel, Baltimore, Baltimore City, Frederick, Carroll, Hartford, Calvert, Charles)
Washington D.C.
North Carolina (Greater Charlotte, Asheville, Raleigh, Cary, Durham, Fayetteville, Greensboro, Wilmington, Fayetteville, Nags Head, and Elizabeth City)
South Carolina (Greenville, Spartanburg, Columbia, Rock Hill, Florence)
Pennsylvania (Greater Philadelphia Area and the Greater Pittsburgh Area)
Missouri (Kansas City and Saint Louis)
Kansas (Kansas City)
Florida (Jacksonville, Tampa Bay, Orlando, Tallahassee)
Texas (Dallas, Fort Worth, San Antonio, Austin)

What attorney/settlement office does our lender use to originate its loans?
When reselling or refinancing, the investor may close at any title company or attorney’s office. Properties may close at the settlement office of the borrowers choice or at a lender approved settlement office.

Who can I use for builders risk and general liability insurance coverage on the loans?
Our lender uses a master insurance policy for all loans and an insurance certificate will be issued to the borrower at settlement. The insurance coverage is obtained by ordering insurance through the lender website. The insurance company is Brown & Brown Flagship Insurance. 

Will our lender loan on properties that are occupied at the time of closing?
Due to insurance restrictions and issues with construction work around tenants, our lender will not fund properties that are occupied at the time of purchase.

Does our lender provide yearly interest statements to clients for the interest carried on its loans?
No, our lender does not provide yearly interest statements to clients for interest carried on its loans. Since the interest expended on behalf of the client is added to the job costs of the property, it is part of the capitalized cost of the rehab property. 

What can I use the loan proceeds for?
Loans are for commercial purposes only and not for personal, family, or household purposes. Loan proceeds are for the purchase and rehabilitation of commercial investment properties intended to be resold for investment profit or rented to persons (other than family members) for investment return.


How Do I Get Started?
Simply go to this page, complete the form and we will email you back your own account details right away. You will then be immediately able to request funding.