FREQUENTLY ASKED QUESTIONS
DO YOU REQUIRE A DOWN PAYMENT?
No. We require you to fund the difference between the total project costs and the loan amount at the time of closing, plus the origination fee and closing costs charged by the title company.
CAN I GET A PRE-APPROVAL LETTER TO SUBMIT WITH MY BIDS?
We do not issue blanket pre-approval letters as we want to look at each project before we agree to provide financing. We will issue property specific commitment letters for each project you ask us to look at provided we believe it is profitable for you.
HOW DO I GET MONEY FOR THE IMPROVEMENTS?
Once the loan has closed and priority pictures are taken you can request the first draw. You will submit payment information for subcontractors and vendors to be paid. After the first draw you will provide lien waivers or receipts for the prior draw. In addition, we will make a site inspection to ensure the work and materials noted in the lien waivers and receipts are on site. All funds will be disbursed through the title company that closed the loan.
HOW DO YOU DETERMINE THE END VALUE OF A PROJECT?
We use comparable sales as close to the subject project as possible within a reasonable timeframe. We do all of these analyses in-house and can typically evaluate a project within one business day of receiving our 1 page project application.
HOW LONG ARE THE MATURITIES OF A LOAN?
For remodel loans the standard due date is 8 months from origination and for new-construction projects the standard maturity is 11 months from origination.
WHAT IF I AM OVER OR UNDER BUDGET ON MY IMPROVEMENT ESTIMATES?
If you are over budget you will need to provide the additional funds needed to complete the project as soon as the funding deficiency is known. If you are under budget you will be able to draw the funds with the last advance on the project.
WHAT HAPPENS IF I NEED MORE TIME?
We have automatic extensions built into each loan. We will allow up to two extensions for 3 months each. Each extension will cost 1% of the loan amount. During the extension period you will be required to make monthly interest-only payments, but you will not be required to pay the interest that accrued during the original term of the loan.
DO YOU ALLOW SECOND MORTGAGES?
Yes. You have to tell us ahead of time and allow us to review the terms, but we will allow second mortgages.
DO YOU ALLOW CROSS COLLATERALIZATION?
Yes. If your loan requires a down payment we will take other real estate as collateral provided the cumulative LTV is acceptable.