Mortgage Terms

Properties Considered:

Residential; Rehabs for Flipping, Buy and Hold, Cash Out and Cash Out and Refinance.

Length of Loan:

12 months or less.

Borrowing Entity:

All borrowers must close in the name of an LLC

Lien Position:

First mortgage position.

Guarantee:

A legal personal guarantee is required. Can be waived if you are an experience flipper.

Loan to Value:

Up to 100% of contracted purchase price for purchase transactions

Up to 70% LTV of the as-is value for refinance transactions

Interest Rate:

Generally from 10 to 12%. Less than 10% for the experienced flipper.

Loan Size:

$75,000 to $2,500,000

Loan Advances:

Funds will be forwarded in draws of 1 to 8 advances to be determined by the lender. Funds will be wired by direct deposit into an account provided by the investor. An on-site inspection to determine current progress of the project may be required prior to release of funds. A sub-contractor guarantee may be required.

Prepayment Penalties:

Varies with the lender.

Loan Origination Fees:

Generally from 2 to 3 points.