This loan program works great for investors who want to accomplish two goals:
1) Finance both the purchase and rehabilitation of investment property.
2) Finance your investment property with little cash invested. (long-term)
With this Program We will Finance:
* Up to 75% of the Future Appraised Value of the Property
* Residential or Commerical Property
To Qualify you will need to have the following:
* 720 credit score
* $80,000 per year in income or greater (exceptions to this can be made)
* $30,000 in cash available of lines of credit
Pre-Qualification Checklist
- Credit Application – APPLY NOW!
- Personal Financial Statement – (use our downloadable form)
- 3 Years Tax returns (complete) and 2 years W-2’s
- Two (2) Most Recent Months Bank Statements (checking, savings, money market, stocks, and retirement statements.
- Two (2) most recent pay stubs
- Copy of current Drivers License
- Completed property spreadsheet for current investment properties (use our downloadable form)
- Signed Purchase Agreement (If applicable)
- Sworn Construction Statement – (use our downloadable form) (if applicable)
Frequently Asked Questions:
How do I get the money for the repairs?
We will disburse funds to the contractor once the work is completed. We will do periodic inspections to monitor the work. If you purchase supplies at a store, keep the reciepts and you can turn them in for us to reimburse you. You will not get a check at closing to use at your discretion for the repairs.
How is the appraised value determined?
We have seasoned appraisers that will do a future value appraisal based on the purchase price and the sworn construction statement.
How long do you have to complete the work?
You have up to 6 months to complete your project.
Do I need to hire a licensed contractor or general contractor to do the work?
Yes. They need to be licensed and you will have to provide that to us.
What are the rates and fees?
The down side of this program is that you will pay closing costs twice. Typical closing costs on a $100,000 rehab deal would be $4,000 for each loan ($4,000 for both the rehab loan and the Fannie Mae takeout $8,000 total). The interest rate on the rehab loan has been at 7% for a long time and I don’t expect that to change. You are required to make interest only payments during construction.
