- January 4, 2024
- Posted by: Greg
- Category: financing
The lender offers interest only, bridge loans for investment properties with less red tape, close in one week or less to a personal name, LLC, trust or IRA.
What’s rare is that most lenders require a $100,000+ loan amount, this lender is fine with a low loan.
You can get a cash-out refinance, based on 75% LTV based on the purchase price.
No appraisal needed, you pay for quick BPO.
Loan Term: 80-90% of purchase, 65% Loan-to-ARV, 17 years; 1st 2 years are Interest-Only & Years 3-17 are fully amortized
-We have a 17-year term, with zero pre-payment penalty when the borrower pays on time. So, yes, it’s framed as a 17-year loan, however there is no prepayment penalty as described below.
Interest Rates: 10-13% in year 1, thereafter 15%
Loan Origination Fee: 2-4% at closing. Additional 4% if paid off in the second year. Borrowers usually don’t get to the second year, thus don’t have to pay the additional points.
Lender Closing Costs: $2295 (admin, underwriting, wire, tax servicing) Attorney Closing Costs: $995
-This is inclusive of all attorney doc prep, attorney courier fee, title review, etc.
Misc. Provisions:
-We only require Fire & Theft insurance coverages only; no windstorm or flood required. This should save you a few thousand over the course of your project. 6 months coverage only.
-We escrow monthly for property taxes. At closing, we will collect a 2 month reserve cushion + adequate amount to pay the taxes each November, when coupled with borrower’s ongoing mortgage payment. For an October closing, we would escrow 2 months.
-If there are HOA FEES: For HOAs in excess of $150 month, we hold in reserve 6-12 months payments.
-There is a minimum of 3-6 (if less than$50K loan amount) month’s interest required. This is not paid at closing, but collected at payoff if the loan is kept less than 90 days.
We require a walk-through inspection of the property after agreeing to all loan terms with borrower. The charge is $295/property (or $320/property for PayPal). We do not require any further due diligence, appraisals, etc…Once the BPO is completed and loan terms confirmed we require upfront processing fee of $500 to start processing closing docs.
- HARD MONEY LOAN MATURING? – REFI READY
- NEED CASH OUT? – REFI READY
- WANT A LOWER RATE? – REFI READY
- PREFER A LONG TERM RENTAL LOAN? – REFI READY