Platinum 12 & 24 Month Bridge Program Highlights
- Minimum 650+ Credit Score Required For Platinum Program!
- Credit Scores 600-649: See Alternative Funding Program – Click Here
- 12 & 24 Month Term Available!
- Up To 70% LTV Purchase Only! (See guidelines paragraph 7 below)
- Up To 70% LTV Rate & Term Refinance! (See guidelines paragraph 7 below)
- Up To 65% LTV Cash Out Refinance! (See guidelines paragraph 5.1 below)
- Vacant Properties OK!
- Properties Listed For Sale On MLS OK!
- No sourcing of deposits under $50,000 (only written letter of explanation required)!
- No Prepayment Penalty! 1% Exit Fee After 9 Months!
- No Income Verification & No Employment Verification!
- Fast 24 Hour Prequalification With No Credit Pull Required!
- Loans from $50,000.00 – $2,000,000.00!
- Purchase Financing Available Up To 70% of Purchase Price Under 24 Month Term!
Platinum 12 & 24 Month Funding Guidelines
1. States Currently Funding:
Funding is available nationwide (including Hawaii), except in the following states: Nevada, Oregon, Minnesota, North Dakota, South Dakota and Vermont.
a. $150,000 minimum property value/ARV for following areas: Atlanta GA, Baltimore MD, Chicago IL, Cleveland OH, Detroit MI, Flint MI, New Haven CT, New Jersey NJ and Philadelphia PA.
b. $100,000 minimum property value/ARV for following areas: Los Angeles CA, Miami FL, New Orleans LA, Oakland CA
c. For Greater Newark New Jersey and New York City markets, reduce all LTV’s by 10%.
2. Qualifying Types Of Properties:
Non-owner occupied, single family and 2-4 units. Including condo’s and town-homes. Up to maximum of 10 acres allowed.
3. Qualifying Credit Criteria:
– Must close in the name of a business entity. Cannot close in individual borrowers personal name.
– No bankruptcies, foreclosures charge-offs judgments within past two (2) years
– Minimum of two credit scores available from the three credit bureaus.
– If 2 credit scores are reported, the representative score is the lower score.
– If 3 credit bureau scores are reported, the representative score is the numerical middle credit score.
– All mortgage payments reporting on credit report must be current prior to closing.
4. Qualifying Experience Criteria:
Qualifying experience is based on the documented number of completed flips AND/OR number of rental properties currently owned.
– Completed flips are defined as: residential investment property (1-4 units) purchased within the last 36 months OR a property that has been sold within the last 36 months.
– Rental properties are defined as: residential investment property (1-4 units) currently owned (regardless of date of purchase).
5. 12 Month Bridge Basic Terms:
– 12 month term
– Monthly interest only payment
– No prepayment penalty. 1% exit fee after 9th month
– No escrow of taxes and insurance
6. 24 Month Bridge Basic Terms:
– 24 month term with additional 12 month extension available. Extension fee applies.
– Rental income is required to be factored for vacant and leased properties.
– For vacant properties the market rent will be used from the property appraisal.
– Minimum debt service coverage ratio (DSCR) is 1.25 (monthly rent divided by monthly interest payment = DSCR)
– Prepayment penalty is 5% prior to end of month six (6).
7. Maximum Loan To Values Based On Credit Score:
650 – 679 Credit Score:
– Rate and term refinance up to 65% of the current As-is Value
– Cash out refinance up to 60% of the current As-Is Value
– Purchase up to 70% of purchase price/As-Is Value (whichever is less)
680+ Credit Score:
– Rate and term refinance up to 70% of the current As-is Value
– Cash out refinance up to 65% of the current As-Is Value
– Purchase up to 75% of purchase price/As-Is Value (whichever is less)
8. Seasoning On Title Requirement
– Property Purchased With Financing: 90 days seasoning on title is required if property purchased with financing and has an existing mortgage balance. We can begin funding application process prior to 90 days, but closing date has to be no earlier than 90 days on title.
– Property Purchased With Cash: 180 days seasoning on title is required if property purchased with cash. We can begin funding application process prior to 180 days, but closing date has to be no earlier than 180 days on title.
9. Minimum Credit Score & Cash Reserve Requirements:
– The minimum qualifying credit score for funding approval is 650+.
– Six (6) months reserve payments holdback/escrowed at closing. Borrower makes no monthly payments during six month period.
– No sourcing of liquid assets required, except deposits of $50,000.00 which will require a written letter of explanation.
10. Maximum Loan Amount:
Loan amounts are from $50,000.00 – $2,000,000.00 for single family and 2-4 units, including condo’s and town-homes.
11. Purchase Only Financing:
1st Time Investors: We can fund up to 70% of current appraised value or purchase price (whichever is less) under our 12 month bridge financing program for 1st time Investors or investors with less than 3 completed flips in the last 3 years and/or currently owned rental properties.
Investors With 3+ Flips And/Or Currently Owned Rentals: We can fund up to 75% of current appraised value or purchase price (whichever is less) for investors with 3 or more flips and/or 3 or more rentals in the last 3 years.
12. Loan Fees:
– Loan origination fee of 3.50% or $4,595.00 (whichever is greater)* (paid at closing)
– Legal fee of $995.00 (paid at closing)
– Processing fee of $795.00 (paid at closing)
13. 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.
14. Minimum Property Values:
– The minimum As-Is appraised value to qualify for underwriting approval is $75,000.00.
– In Certain Market Areas, the minimum property value is as follows:
$100,000 minimum property value for following areas: Los Angeles CA, Miami FL, New Orleans LA, Oakland CA
$150,000 minimum property value for following areas: Atlanta GA, Baltimore MD, Chicago IL, Cleveland OH, Detroit MI, Flint MI, New Haven CT, New Jersey NJ and Philadelphia PA.
15. Number Days To Close:
Approximately 15-18 business days to close (with rush appraisal) from submission of full loan file into underwriting.
16. Interest Rates:
Interest rates typically range from 8.75% to 11.99% based on number of rental properties currently owned and/or the total number of qualifying completed flips in the last 36 months.
17. REQUIRED DOCUMENTATION FOR UNDERWRITING APPROVAL
– Clear and legible copy of government issued ID (all members of business entity)
– Copy of executed purchase and sales agreement (if applicable)
– Executed authorization to run credit report and background check
– Copy of last/most recent one month personal or business bank statements (all pages)
– Copy of IRS EIN letter for business entity
– Copy of Articles Of Organization for LLC or Incorporation for a Corporation
– Copy Of Operating Agreement for LLC or Corporate Charter/Bylaws for Corporation