Silver Fix & Flip – Investor Funding Program
$25,000.00 – $5,000,000.00 Loan Amounts!
90% Financing Of Purchase And Rehab Cost Combined!
*Only 2.75% Lender Origination Fee!
NEW – Single Close Rehab To Permanent 30 Year Loan!
Fix & Flip SILVER Program Highlights:
– New Single Close – Rehab To Permanent 30 Year Rental Loan (see paragraph 2.1 below)
– Only 10% Down Payment Required (for qualified borrowers)!
– 600+ Minimum Credit Score Required!
– *2.75% Lender Origination Fee Or $3,800.00 (whichever is greater)
– 1st Time Investors With 680+ Credit Qualify For 90% Financing!
– 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!
– Loan Amounts Of $25,000.00 – $5,000,000.00. Loan amounts below $75,000.00 are capped at 65% of ARV!
– Close In 12 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!
– Refinance Plus Rehab Loan Available! (See details below)
– 13 Month Term With No Prepayment Penalty!
– Assignment Fee Allowed With Purchase With Maximum 10% Increase in Sales Price!
– Purchase Only Option Available for Tier 3 Investors!
SILVER FUNDING PROGRAM
Funding Available NATIONWIDE except:
Alaska, Hawaii, Idaho, Maine, Montana, Nevada, New York, North Dakota, Puerto Rico, South Dakota, Utah and Vermont
For Illinois, Maryland and New Jersey: Minimum loan amount is $75,000.00.
For CHICAGO, Illinois Properties: We are NOT currently funding fix and flip funding in the greater Chicago market.
Business Entity Required: All investor loan transactions must close in the name of a business entity!
SILVER PROGRAM – FUNDING GUIDELINES
1. Minimum Credit Requirements
– Minimum 600+ Credit Score Required For Funding Approval.
– Minimum of three (3) open tradelines with 24 month history.
– 1st Time Investors With 680+ Credit Qualify For 90% Financing.
For Illinois, Maryland and New Jersey: Minimum loan amount of $75,000.00.
2. 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
IMPORTANT NOTE: Any member of the business entity contributing cash assets to the transaction must meet qualifying credit criteria.
2.1 Single Close – Rehab To Permanent 30 Year Loan Criteria
– Only one (1) closing for the initial purchase and the conversion to permanent 30 year loan.
– Minimum 620+ middle credit score required. Soft credit pull is done at time of conversion to permanent 30 year loan to verify credit score is minimum 620+.
– Must have a verifiable prior mortgage history (primary residence OR rental property)
– Cash out option available “after” rehab is 100% complete. Based on property debt service and appraisal.
– Initial ARV appraisal will include 1007 rental schedule for projected rents. Appraiser will re-certify appraisal at time of conversion to 30 year loan.
– 1% origination fee (or minimum $1,000.00) at time of conversion to permanent 30 year loan. If borrower chooses not take the permanent loan after rehab is done there will be a .50% point exit fee.
– Interest Rates: Borrower will be provided a rate table prior to closing on the rehab loan which will detail the expected interest rate at time of conversion to permanent 30 year loan.
3. Verification Of Liquid Cash Assets Is Required
To qualify for funding approval, you must provide most recent 2 months bank statements that reflect an ending balance that covers the following specific transaction related items:
– Down Payment
– Construction Budget Reserves
– Monthly Interest Payment Reserves
– Lender Fees
– Deposits of $25,000.00+ must document the source of deposit
– Stocks, bonds, mutual funds, retirements accounts are reduced to 50% of value for calculating verification of assets.
– Borrower must show a minimum of $15,000.00 in cash liquid assets to qualify for funding approval. Regardless of total assets, $15,000.00 must be in liquid cash in on demand account (checking, savings, money market).
4. Loan Origination Fees
– 2.75% of total loan amount OR $3,800.00 (whichever is greater)
– Processing Fee: $995.00
4.1 Construction Budget & Funds Disbursement Policy
– We do not advance construction loan funds. Construction funds are disbursed (at your discretion) as work is documented as completed with your project
– Request for disbursement of construction funds are initiated via online portal. Funds are normally disbursed within 3 business days after completion of inspection/validation of completed work.
– There is a $200.00 inspection/draw fee for each disbursement of construction budget funds. The fee is deducted from your construction budget at the time of each disbursement.
– There is no minimum or maximum number of draws against the construction budget.
– Tier 1 & 2 Borrowers OR Loan Amounts Over $500K: If Construction Budget Is Greater Than 50% Of Purchase Price – If rehab budget is greater than 50% of purchase, borrower must show 20% of construction budget in reserves and 9 months of interest only payments in reserves.
5. Tier Levels: Maximum “Loan To Cost” (LTC) & Interest Rate Based On Number Of Prior Completed Fix & Flips Last 24 Months
Tier 1: 0 flips* 12% interest rate 90% LTC 70% ARV
Tier 2: 1-4 flips 11% interest rate 90% LTC 70% ARV
Tier 3: 5+ flips 10% interest rate 90% LTC 70% ARV
*0 flips 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.
QUALIFYING FLIP DEFINITION: Completed flips are defined as residential investment properties that were acquired within the last 24 months AND renovated and sold within 12 months of acquisition.
6. Required Documentation – See bottom of this page for list of required documents
6.1 Transactions/Properties Ineligible For Funding
– Non-arms length transactions
– Commercially zoned real estate
– Multifamily (5+) real estate, Mixed Use Properties, Condo’s, Manufactured, Dome, Log Homes or Houseboats, Timeshares
– Rural Properties and Raw Land
– Properties less than 700 sq ft of living/heated area
7. Qualifying Types Of Properties
Single Family residences and 2-4 units. Non owner-occupied only. No primary residence or vacation homes. No condo’s.
8. Refinance Plus Rehab Loan
– Refinance with a rehab loan is structured the same as Silver Funding Program fix and flip product.
– No seasoning on title is required for refinance with a rehab loan.
– Maximum 90% financing of payoff amount plus cost of rehab combined, not to exceed 70% of After Repair Value (ARV) (based on borrower qualification).
– Closing cost can be included in loan amount if borrower has already invested at time of acquisition a minimum of 10% or 15% (depending on borrower qualification) of total project cost. Reviewed on a case by case basis by the underwriter.
– Cash out option is only available if property is owned free and clear and if determined by the underwriter.
– Must provide a construction budget/scope of work detailing specific repairs just like a fix and flip project.
– Cannot be within 90 days of an existing loan maturity date on the subject property.
9. Purchase Only Option for Level 3 Investors
10. 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.
11. 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 but can typically range from $375.00 – $600.00. Loan amounts above $1,000,000.00 require two (2) appraisals.
11.1 IF ADDING BRAND NEW SQUARE FOOTAGE – General Contractor Approval Required
If adding brand new square footage to the existing structure then a General Contractor (GC) must be approved by underwriting by providing the following specific documents:
__ GC Biography (template form provided),
__ Drivers License
__ Contractor/Builders License
__ Proof Of Liability Insurance
__ Workers Compensation
__ Two most recent bank account statements OR two most recent tax returns
__ Prior 24 month portfolio showing at leaswt two (2) properties of equivalent budget size
Terms of Loan Funding
12. Interest Rates
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 12 months. See guidelines above.
13. Seller Concessions / Seller Paid Closing Cost / Assignment Fees
Seller may contribute up to 3% of the agreed purchase price towards buyer closing cost expenses or concessions in the contract to purchase.
The maximum Assignment Fee is 3% of the contract purchase price.
14. Subordinate Financing
15. Required Documents For Funding Submission
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)
__ Scope Of Repair Work (Template Provided)
Note: Terms are subject to change. Final terms vary depending on the property and borrowing entity