California and Arizona Funding Program Highlights:
– 600+ Minimum Credit Score Required!
– Only 10% Down Payment Of Combined Purchase Price & Rehab Cost Required!
– 90% Financing Of The Purchase Price And Rehab Budget Combined – Not To Exceed 70% Of After Repair Value!
– Current As-Is Value Is Not Considered Or Reviewed For Funding Approval!
– No Maximum Loan Amount!
– Close In 12-15 Business Days From Receipt Of All Required Documents!
– Foreign Nationals OK with minimum of two (2) completed flips within last 24 months!
– First Time Investors OK!
– Fast 24 Hour Prequalification With No Credit Pull Required!
CALIFORNIA AND ARIZONA FUNDING GUIDELINES
Credit Score Requirement
MINIMUM 600+ CREDIT SCORE REQUIRED FOR FUNDING APPROVAL.
QUALIFYING CREDIT CRITERIA
No bankruptcies in past three (3) years
No foreclosures, short sales, or deed in lieu in past 2 years
Minimum of two (2) credit scores are required to reflect on credit report
Cash Assets Required For Funding Approval
To qualify for funding approval, you must provide financial bank statements that reflect liquid assets that covers the following specific transaction related items:
– Down payment requirement amount.
– Lender loan origination fee and applicable closing cost.
– 10% of the total rehab budget is required to be documented as “liquid reserves contingency”. This is not a cost to be paid at closing.
– Six months (6) of reserve monthly interest payments. This is not a cost to be paid at closing.
Loan Origination Fees
Level 1: 0-1 flip last 24 months 2.99% origination fee of total loan amount
Level 2: 2-4 flips last 24 months 2.75% origination fee of total loan amount
Level 3: 5+ flips last 24 months 2.50% origination fee of total loan amount
– Minimum dollar amount of loan origination fee is $4,500.00
– IMPORTANT: Completed flips are defined as residential investment properties “exited or sold in the last 24 months” and owned for no more than 12 months during the last 24 months OR a property acquired, rehabbed, and converted to permanent financing and owned for no more than 12 months during the last 24 months.
Other Lenders Fees
Processing Fee: $495.00
Maximum “Loan To Cost” (LTC) & Interest Rate Based On Number Of Prior Completed Fix & Flips Last 24 Months
Level 1: 0-1 flip* 12% interest rate 90% LTC 70% ARV
Level 2: 2-4 flips 11% interest rate 90% LTC 70% ARV
Level 3: 5+ flips 9.99% interest rate 90% LTC 70% ARV
*0-1 flip with less than 680+ credit = 85% LTC and 65% ARV)
**Loan To Cost (LTC) = total loan amount as a percentage of purchase price and rehab cost combined
Required Documentation – See bottom of this page for list of required documents
Qualifying Types Of Properties
Single Family residences and 2-4 units. Non owner-occupied only. No primary residence or vacation homes. No condo’s.
PURCHASE AND REHAB FUNDING PROGRAM
We can fund up to 90% of the combined purchase price and rehab budget in one loan not to exceed 70% of the After Repair Value (ARV).
Funding Scenario Example:
Purchase price $150,000.00
Rehab budget $ 60,000.00
Total project cost: $210.000.00
X 90% Loan To Cost (LTC)
Loan Amount: $189,000.00
Down Payment: $ 21,000.00 (total project cost minus loan amount)
Plus lender fees and closing cost
Borrower is responsible for down payment of total project cost, plus lenders fees and closing cost.
Foreign nationals require minimum 20% to 30% down payment
All Transactions Must Close In A Business Entity Name
Funding can only be approved in a business entity name. There is no seasoning requirement on the age of the business entity. Entities include: LLC, LLP, S-Corp, C-Corp.
Proof Of Financing Letter
After completing a pre-qualification application we can also promptly provide you with a proof of financing letter(s) to assist you in making offers on prospective investment properties. To obtain a proof of financing letter you must provide a copy of your most recent bank statement reflecting a balance of the minimum required funds to close.
Proof Of Funds To Close
Minimum $15,000.00 In Liquid Checking/Savings Account Required For Funding Approval!
You must clearly document that you have the funds to close, which includes; down-payment, lender fees and closing cost. Loan files are not submitted for underwriting approval without proof of funds to close.
Days To Close
On average we can close in about 12-15 business days from the time we receive ALL REQUIRED DOCUMENTATION. Delays in closing are normally due to appraisal/property value, title issues, etc.
Minimum And Maximum Loan Amounts
– Minimum loan amount is $75,000.00. There is NO MAXIMUM loan amount.
Full Property Appraisal Required
A traditional full property appraisal is ALWAYS required to underwrite and fund a investor loan for this product. We will order an expedited appraisal at time of submission of loan file for underwriting approval. Cost of appraisals vary based on geographical market.
No Verification Of Income Required
No verification or documentation of personal or business income is required. Borrower will have to produce copy of of last years personal tax return to document that income taxes are being paid. Income is NOT used as bases for qualifying.
Terms of Loan Funding
Single family residences and 2-4 residential units. No condo’s.
Fix & Flip (purchase and rehab) transactions only.
Interest rates range on average from 9.99% to 12% depending on credit score and number of prior completed fix and flip transactions within last 24 months. See guidelines above.
Seller Concessions / Seller Paid Closing Cost
Seller may contribute up to 3% of the agreed purchase price towards buyer closing cost expenses or concessions in the contract to purchase.
Subordinate financing is NOT allowed, which includes 2nd mortgages and seller held financing.
Maximum Loan Amount
There is no maximum loan amount
Fixed monthly payment, interest only.
Business Entity Borrower (Must close in the name of a business entity)
__ Clear and legible copy of drivers license (all members of business entity)
__ Purchase and sales agreement
__ Last 2 month’s business bank statements (must include all pages)
__ Articles Of Organization for LLC Or Articles Of Incorporation for a Corporation
__ Operating Agreement or Corporate Charter/Bylaws
__ Certificate Of Good Standing (Issued By Secretary Of State within 30 days)
__ Copy of last years personal tax return for all members of business entity. This documentation is NOT to verify income but to validate that federal income taxes are being paid and reduces likelihood of unpaid tax liens being filed on subject property.
__ Scope Of Repair Work (We provide required template for renovation scope of work)
Note: Terms are subject to change. Final terms vary depending on the property and borrowing entity