12 Month Bridge Refinance Highlights
- Use Current Appraised Value!
- Get Cash Out Immediately After Completing Renovation!
- Vacant Properties OK!
- Properties Listed For Sale On MLS OK!
- Can Close On Multiple Properties – 1 Loan Per Property!
- No sourcing of liquid assets except deposits over $50,000!
- No Prepayment Penalty!
- No Income Verification & No Employment Verification!
- Property Must Be 100% Complete Of Any Renovation/Rehab Work!
- Purchase option available – see guidelines below!
- Fast 24 Hour Prequalification With No Credit Pull Required!
- Loans from $50,000.00 – $2,000,000.00!
12 Month Bridge Refinance Funding Guidelines
1. States Currently Funding:
Funding is available nationwide, except in the following states: Oregon, North Dakota, Minnesota and Vermont.
2. Qualifying Types Of Properties:
Non-owner occupied, single family and 2-4 units. Including condo’s and townhomes.
3. Basic Loan Terms:
– 12 month term
– Monthly interest only payment
– No prepayment penalty during first 9 months.
– After first 9 months a 1% exit fit will apply
– No escrow of taxes and insurance
4. Minimum Credit Score & Cash Reserve Requirements:
– The minimum qualifying credit score to qualify for funding approval is 600+.
– Must show liquid assets of a minimum of 4 months interest only payments. If receiving cash out, reserve requirements can be met via cash from proceeds at closing.
– No sourcing of liquid assets required, except deposits of $50,000.00 or more which will required a written letter of explanation.
5. Loan Amounts:
Loan amounts are from $50,000.00 – $2,000,000.00 for single family and 2-4 units, including condo’s and townhomes.
6. Maximum Loan To Values (LTV):
– Rate and term refinance up to 72.5% of the current As-is Value (with qualifying criteria)
– Cash out refinance up to 70% of the current As-Is Value (with qualifying criteria)
7. Purchase Option Available:
1st Time Investors: We can fund up to 75% of current appraised value or purchase price (whichever is less) under our 12 month bridge financing program for 1 st time Investors or investors with less than 3 completed flips in the last 3 years.
Investors With 3+ Flips Or Owned 3+ Rentals: For investors with 3 or more flips or owned 3 or more rentals in the last 3 years we can fund up to 85% of current appraised value or purchase price (whichever is less).
8. Loan Fees:
– Loan origination fee of 3.5%
– Legal fee of $995.00 (legal fee is required to be paid after issuance of written loan commitment letter and is credited at closing)
– Processing fee of $495.00
9. Property Appraisal:
A full property appraisal is required for all bridge loan funding transactions. The cost of the appraisal is required to be paid upfront prior to ordering the appraisal. The cost of appraisal typically ranges from $400.00 – $650.00 depending on the local real estate market.
10. Minimum As-Is Appraised Value:
The minimum current appraised value to qualify for 12 month bridge financing program is $75,000.00.
11. Number Days To Close:
Approximately 25-30 days to close from submission of full loan file into underwriting
12. Interest Rates:
Interest rates typically range from 8.99% to 11.99% based on number of properties owned or flipped in the last three (3) calendar years, and are subject to change without prior written notice:
– 0 Properties owned or flipped 11.99%
– 1-2 properties owned or flipped 10.99%
– 3-9 properties owned or flipped 9.99%
– 10-19 properties owned or flipped 8.99%
– 20+ properties owned or flipped Interest rate provided at time of application
13. REQUIRED DOCUMENTATION FOR UNDERWRITING APPROVAL
– Clear and legible copy of government issued ID (all members of business entity)
– Executed authorization to run credit report and background check
– Copy of last two (2) months personal bank statements (all pages)
– Copy of Articles Of Organization for LLC or Incorporation for a Corporation
– Copy Of Operating Agreement for LLC or Corporate Charter/Bylaws for Corporation