620+ CREDIT – PLATINUM FIX & FLIP PROGRAM
- Up To 90% Of Purchase Price with 3+ Completed Flips/current rentals and 681+ credit! (see guidelines paragraph 8 below)
- 100% Financing Of Rehab Budget!
- Up To 75% Of After Repair Value (ARV) Maximum Loan Amount!!
- Minimum 620+ Credit Score Required For Lower LTV Underwriting Approval!
- Loan Amounts from $50,000.00 To $2,000,000.00!
- No Interest Charged On Unused Rehab Budget Balance Each Month!
- No Sourcing Of Deposits Under $50,000.00 (only written letter of explanation required)!
- No Prepayment Penalty! 1% Exit Fee After 9 Months!
- 24 Hour Prequalification With No Credit Pull Required!
- Can use 50% Of Face Value Of 401K, stocks & Retirement Accounts Towards Liquid Assets!
PLATINUM FIX & FLIP FUNDING GUIDELINES
1. States Currently Funding:
Funding is available nationwide, except in the following states: Hawaii, Nevada, Oregon, Minnesota, North Dakota, South Dakota and Vermont.
$100,000+ minimum As-Is value and $150,000+ After Repair Value is required for following areas: Atlanta GA, Baltimore MD, Chicago IL, Cleveland OH, Detroit MI, Flint MI, New Haven CT, New Jersey NJ and Philadelphia PA.
Minimum As-Is and After Repair Value requirement for all other areas is determined by zip code. Contact us to verify minimum values for any specific zip code.
2. Qualifying Property Criteria:
– Non-owner occupied, single family and 2-4 units. Including condo’s and townhomes.
– Property must be a minimum of 750 sq ft. No exceptions.
– Up to maximum of 10 acres allowed.
– In determining current As-Is value, investor must place weight on the overall material condition of the property compared to other similar properties. A property in a C5-C6 condition will see the current value of property significantly adjusted downward.
2.1 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.
2.2 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) 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).
Qualifying properties for experience are as below and pertain to any members of the business entity with 10% or more ownership:
– Total number of current rentals
– Properties sold in last 36 months
– Licensed real estate agent counts as 1 deal
– Licensed general contractor counts as 1 deal
3. Basic Loan Terms:
– 12 month term with six (6) month extension available.
– Monthly interest only payment.
– No prepayment penalty. 1% Exit Fee After 9th Month.
– No escrow of taxes and insurance
– Pay no monthly interest carry cost on the unused balance of renovation budget
4. Minimum Credit Score & Cash Reserve Requirements:
– 620+ minimum qualifying credit score to qualify for funding approval.
– 681+ credit score with 3+ completed flips and/or current rentals qualifies for up to 90% of purchase or As-Is Value (whichever is less).
– Monthly Payment Reserve Requirement: Must show liquid assets to cover 6 months interest only payments.
– Debt Service Reserve Requirement: Must show liquid assets to cover 10% of rehab budget amount and 6 months of initial monthly payment amount.
– No sourcing of liquid assets required, except deposits of $50,000.00 which will require a written letter of explanation.
– For 401K and retirement accounts: We use 50% of the current value as basis for credit to liquid assets.
4.1 Seller Contributions Towards Buyers Closing Cost Allowed:
Seller contributions of up to a maximum of $3,500.00 is allowed towards buyers closing cost.
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 town-homes.
6. Refinance Cash Out With Rehab Loan – Max LTV’s
Initial loan amounts detailed below must cover any mortgage payoff amount otherwise borrower will be required to cover difference out of pocket. Any amounts above the payoff of existing mortgage can be used as cash out and to cover closing cost.
– Experience level is 0-2 completed flips and/or rentals currently owned: Initial loan amount is 55% of As-Is Value plus additional cost of renovation. Max total loan amount is 50% of ARV.
– Experience level is 3+ completed flips and/or rentals currently owned: Initial loan amount is 60% of As-Is Value plus additional cost of renovation. Max total loan amount is 55% of ARV.
7. Rehab Cost / Loan Amounts:
Total rehab budget cannot exceed the total purchase price/As-Is Value.
Note: We do not advance rehab loan funds. Rehab funds are disbursed as work is documented as completed with your project.
8. Maximum Loan To Values (LTV):
0-2 Completed Flips (With 681+ Credit) In Last 36 Months PLUS Number Of Rental Properties Currently Owned:
– Up To 85% of Purchase Price OR As-Is Value (whichever is less)
– Plus 100% of Rehab Budget
– Maximum loan amount 75% of After Repair Value
No General Contractor Required When Adding Less than 20% New Construction Square Footage
3+ Completed Flips (With 681+ Credit) In Last 36 Months PLUS Number Of Rental Properties Currently Owned:
– Up To 90% of Purchase Price or As-Is Value (whichever is less)
– Plus 100% of Rehab Budget
– Max rehab budget of $100,000.00 allowed with 90% financing and max loan amount of $500,000.00.
– Maximum loan amount 75% of After Repair Value
No General Contractor Required When Adding New Construction Square Footage
9. Loan Fees:
– Loan origination fee of 2.99% or $3,995.00 (whichever is greater) (paid at closing)
– Legal fee of $995.00 (paid at closing)
– Processing fee of $795.00 (paid at closing)
10. 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.
11. Minimum Property Values & After Repair Values:
– The minimum As-Is appraised value to qualify for underwriting approval is $50,000.00.
– The minimum After Repair Value to qualify for underwriting approval is $75,000.00.
– In Certain Market Areas, the minimum property value/ARV is as follows:
$100,000 minimum property value/ARV for following areas: Los Angeles CA, Miami FL, New Orleans LA, Oakland CA
$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.
12. Number Days To Close:
Approximately 12-15 business days to close from the date of ordering the property appraisal.
13. Interest Rates:
Interest rates typically range from 8.75% to 11.49% based on number of properties owned and/or flipped in the last three (3) years.
14. 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)
– Copy of most recent one (1) month of 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
– Real Estate Experience Spreadsheet (template provided by email)
– Renovation Construction Budget Spreadsheet (template provided by email)
– Executed electronic authorization to run credit report and background check (provided by email after receipt of all required docs)