California 2

CALIFORNIA FUNDING PROGRAM

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$75,000.00 - $2,000,000.00+

CALIFORNIA INVESTOR FUNDING PROGRAM

NEW – $0.00 Lender Points At Closing –  Fix & Flip Funding!*

Short Term 12 Months – Interest Only Payments! 

Purchase & Rehab, Purchase Only  Or Refinance Cash Out!

Standard Loan $75,000.00  –  $1,000,000.00!

Jumbo Loans $1,000,000.00  –  $2,000,000.00!

($2,000,000+ Loans Available)

California Loans Funded Under CVPN, Inc. BRE# 01878002

CALIFORNIA Standard Funding Program Highlights 

*$0.00 Lender Points Paid At Closing (Optional).  Pay no lender points at closing for Fix and Flip and purchase only transactions.  Lender points are paid on back-end at sale or refinance of property with a 25% service fee added to the amount of original lender points.  Not available for 1st time investors.  Not available for refinance transactions.

600+ Credit Score Qualifies For Loan Amount Up To 90% Of Purchase Price Not To Exceed 80% Of As -Is Value (75% 1st time investors) PLUS Up To 100% Of Rehab Cost Not To Exceed 75% of ARV (70% 1st time investors)!

550 -599 Credit Score Qualifies For Loan Amount Up To 85% Of Purchase Price Not To Exceed 80% Of As -Is Value Plus Up To 100% Of Rehab Cost Not To Exceed 70% Of ARV (65% 1st time investors)!

– 550+ Credit Qualifies For Refinance Cash Out Up To 65% Of Value.  See funding guidelines below for details.

– Loan Amounts From $75,000.00  –  $1,000,000.00!

– Fund Up To 100% Of Rehab Cost Not To Exceed the purchase price or rehab budget of $500,000.00.  Cannot exceed max ARV of 75% (70% 1st time investors)!

– No Income Verification and No Employment Verification Required!

– Fast Closings In 10-12 Business Days On Average!

 

CALIFORNIA JUMBO Funding Program Highlights 

*$0.00 Lender Points Paid At Closing (Optional).  Pay no lender points at closing for Fix and Flip transactions.  Lender points are paid on back-end at sale or refinance of property with a 25% service fee added to the amount of original lender points.  Not available for 1st time investors.

640+ Credit Score Qualifies For Loan Amount Up To 80% Of Purchase Price Not To Exceed 80% Of As-Is Value PLUS Up To 100% Of Rehab Cost Not To Exceed 70% Of ARV!

– Loan amounts from $1,000,000.00 – $2,000,000.00!

– Fund Up To 100% Of Rehab Cost Not To Exceed 70% Of ARV!

– No Income Verification and No Employment Verification Required!

– Fast Closings In 10-12 Business Days On Average!

 

REQUIRED DOCUMENTATION See Bottom Of Page For List Of Required Documents 

CALIFORNIA FUNDING PROGRAM

 

STANDARD LOAN FUNDING GUIDELINES – $75,000.00 – $1,000,000.00

Credit Score Requirement

600+ Credit qualifies for standard program with financing up to 90% of purchase price with max LTV of 80% of current As-Is value.  Finance up to 100% of rehab cost with the combined loan amount not to exceed 75% of ARV (70% 1st time investors).

550 – 599 Credit qualifies for financing up to 85% of purchase price with max LTV of 80% of current As-Is value (75% 1st time investors).  Finance up to 100% of rehab cost with the combined loan amount not to exceed 70% of ARV (65% 1st time investors).

JUMBO LOAN FUNDING GUIDELINES – $1,000,000.00 – $2,000,000.00

Credit Score Requirement

– 640+ Credit qualifies for jumbo loan program with financing up to 80% of purchase price and up to 100% of rehab cost with the combined loan amount not to exceed 70% of ARV.

– 1st Time Investors not allowed under jumbo loan program.

Full property appraisals are required for all jumbo loan transactions.

Must close in a business entity name for jumbo loan transactions.

 

Purchase Price Funding Guidelines

Standard Funding Program:  We fund up to 90% of the purchase price of your investment property.  The actual dollar loan amount for the purchase cannot exceed 80% of the current AS-IS Value (75% for 1st time investors).

Jumbo Funding Program:  We fund up to 80% of the purchase price of your investment property.  The actual dollar loan amount for the purchase cannot exceed 80% of the current AS-IS Value (This program not available for 1st time investors).

 

Rehab Cost/Budget Guidelines – STANDARD FUNDING PROGRAM:

Maximum Rehab Budget Amount:   The maximum rehab budget loan amount cannot exceed the purchase price of the subject property.  Cannot be more than $500,000.00 and the combined purchase loan and rehab loan cannot exceed 75% of ARV (70% for 1st time investors).  (Rehab budgets that exceed these guidelines may be approved on a case by case basis subject to LTV parameters).

Rehab budget in excess of 50% of the purchase price:  Any rehab budget in excess of 50% of the purchase price of the subject property may require a licensed General Contractor depending on the experience level of investor.   Also any rehab (regardless of dollar amount) that adds new square footage to existing foot print of property, requires foundation work, etc will require a licensed General Contractor.

Disbursement Of Rehab Funds:  We do not advance rehab loan funds.  Rehab funds are disbursed (at your discretion) as work is documented as completed with your project.

Rehab Cost/Budget Guidelines – JUMBO FUNDING PROGRAM:

The combined purchase loan amount and rehab budget loan amount cannot exceed 70% of the ARV.   Any rehab budget in excess of 50% of the purchase price of the subject property may require a licensed General Contractor depending on experience level of investor.

    Maximum Rehab Budget Amount:   The maximum rehab budget loan amount when combined with the purchase loan amount cannot exceed 70% of the After Repair Value (ARV).

    Disbursement Of Rehab Funds:  We do not advance rehab loan funds.  Rehab funds are disbursed (at your discretion) as work is documented as completed with your project.

Refinance Transactions (Cash Out Available)

With a minimum 550+ credit score, we can fund up to a maximum of 65% of the current AS-IS Value if the current owner has been on title of subject property for a minimum of 181 days.  All refinance transactions require a full property appraisal. 

Guidelines For Refinance Transactions:

– Vacant properties OK!

– Single family, 2-4 units, condo’s and town-homes OK!

– No market rent analysis required and no copies of lease agreement required!

– Properties currently listed for sale OK!

– If subject property owned for less than 6 months we can loan up to 90% of the original acquisition cost.

 

Loan Origination Fees

Loan amounts of $  75,000.00 – $120,000.00:          2.00% of total loan amount plus $2,100.00 flat fee

Loan amounts of $121,000.00 – $250,000.00:          3.50% of total loan amount

Loan amounts of $251,000.00 – $500,000.00:          2.99% of total loan amount

Loan amounts of $501,000.00 – $1,000,000.00:       2.50% of total loan amount

Loan amounts of $1,000,001.00 – $2,000,000.00:    2.25.% of total loan amount

Closing Fees – Effective As Of April 1, 2017

$749.00 Underwriting Service Fee –  Includes $299.00 Non-refundable Application Fee due at time of submission to pre-underwriting.  Credit for application fee is applied at closing.  Balance Of $450.00 due at closing.

$495.00 Processing Fee

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 your last 3 months of bank statements reflecting a balance of the minimum required funds to close.

Proof Of Funds To Close 

You must clearly document that you have the funds to close, which includes; down-payment, lender fees and closing cost for purchase transactions and 6 months reserves for a refinance.  Loan files are not submitted for underwriting approval without proof of funds to close.

Business Entity Required For Jumbo Loans

For jumbo loan transactions, funding can only be approved in the name of a business entity.

Down-payment Requirement

All purchase transactions require a minimum of 10% down-payment of the final purchase price (20% for jumbo loans).  There is no seasoning requirement of the down payment.  We DO NOT provide 100% purchase financing.

First Time Investors – Eligible For Standard Program Only

The maximum LTV for first time investors is 70%.  To NOT be considered a first time investor, borrower must have documented prior ownership of residential investment real estate in their personal name or business entity name per one of the following criteria:

    Closed one (1) real estate investor transaction within the last six (6) months, OR closed two (2) real estate investor transactions within the last 12 months, OR closed three (3) or more real estate investor transactions at any prior time.

IMPORTANT:  We can only fund up to two (2) investor loan transactions for a 1st time investor.

Days To Close

On average we can close on in about 10-12 business days from the time we receive ALL REQUIRED DOCUMENTATION.  Delays in closing are normally due to appraisal delays and seller title issues.

Minimum And Maximum Loan Amounts

Standard funding program:  $75,000.00 to maximum loan amount of $1,000,000.00

Jumbo funding program:  $1,000,000.00 to maximum loan amount of $2,000,000.00

Loan amounts of $2,000,000+ are available.  Contact an account executive to discuss your deal scenario.

Determining Your Current As-Is Value

We highly recommend using www.RedFin.com to assist you in “estimating” the current As-Is value of a prospective investment property.  In addition you can normally find highly important information specifying other home sales of similar type properties near the bottom of the web page.

We strongly recommend that you DO NOT use Zillow.com to estimate current value.  It’s important to note that no online value estimating tool can determine the actual value on a specific property so you have to complete a thorough due diligence process to identify the “most similar and closest” sales comps to establish a reasonable value.

“The BPO” Property Appraisal – Standard Funding Program

A traditional property appraisal is NOT required under our standard funding program. We will normally order a Broker Price Opinion (BPO) to determine the AS-IS value for underwriting approval.

NOTE:  All jumbo loans and 2-4 unit type transactions will require a full traditional property appraisal. 

No Verification Of Income Required

No verification or documentation of personal or business income is required.

No Verification Of Employment Required

No verification or documentation of your current or past employment status is required.

Verification Of 6 Months Reserves Required

All loan transactions require that you verify six (6) months of interest payments (Reserves) via your bank statements. The most recent account balance reflecting on your bank statement is the basis for documenting your 6 months reserves.  No seasoning of funds is required so real time deposits can be made to meet this underwriting requirement.

Terms of Loan Funding

Property Type

Single family and 2-4 residential units (including condos, town-homes & PUDS)

Transaction Type

Purchase only, purchase and rehab, refinance cash out, and refinance rate/term.

Interest Rates

Interest rates range on average from a low of 8% to 11% depending on documented prior ownership of residential investment real estate by the borrower and the final LTV on the loan being funded.

Subordinate Financing

Subordinate financing is NOT allowed, which includes 2nd mortgages and seller held financing.

Seller Concessions

Seller concessions are allowed.  However, any seller concessions will reduce the purchase loan amount dollar for dollar equal to the amount of the seller concessions. AS SUCH, WE STRONGLY RECOMMEND TO NOT INCLUDE ANY SELLER CONCESSIONS IN YOUR PURCHASE SALES AGREEMENTS.

Loan-to-Value Maximum’s

Standard Funding Program:  Maximum LTV is 80% of As-Is Value and 75% of ARV when rehab loan is included.

Jumbo Funding Program:  Maximum LTV is 80% of As-Is Value and 70% of ARV when rehab loan is included.

Rehab Draw/Funds Disbursement

We Do Not Advance Rehab Funds.  After request for rehab loan funds is initiated via email request, funds are disbursed within 3 business days after completion of inspection/validation of completed work.  There is a $125.00 inspection fee per each draw request.  Inspection fee is deducted from your rehab budget funds.

Loan Term

12 months

Rate Type

Fixed monthly payment, interest only

Prepayment Penalty

None

REQUIRED DOCUMENTS FOR FUNDING APPROVAL

Business Entity Borrower (When closing in the name of a business entity)

__ Last 3 month’s business bank statements (must include all pages).  Can also use personal bank statements in conjunction with business bank statements.

__ Copy of void check associated with bank statements provided

__ Clear and legible copy of Guarantors Drivers License

__ Clear and legible copy of Guarantors SSN Card

__ Articles Of Organization for LLC Or Articles Of Incorporation for a Corporation

__ Operating Agreement or Corporate Charter/Bylaws

__ Copy Of HUD-1’s from previous residential real estate investment transactions

 

Individual Borrower – “Allowed For Standard Funding Program Only”

__ Last 3 month’s personal bank statements (must include all pages)

__ Copy of void check associated with bank statements provided

__ Clear and legible copy of Drivers License

__ Clear and legible copy of SSN Card

__ Copy Of HUD-1’s from previous residential real estate investment transactions

Note:   Terms are subject to change without prior written notice.

Get Started Now – Free Pre-qualification – 550+ Credit OK!

Low Rates – Flexible Terms – Close in 10 days Or less!