Residential 1-4 Family

Questions about rental property financing answered 

Long Term rental financing PrograM faq

Fix and Flip / Short Term Renovation Program FAQ

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Renovation Lending Questions

Yes – we require an appraisal on all lending programs. Renovation and construction financing require a “subject to” appraisal. Long term purchase and refinance require “as is” valuations and a rent comparable analysis to determine fair market rent.

Coverage must be a minimum of 6 months from date of funding. The coverage must be in the entity’s name. It cannot be in the individuals names of those involved in the entity.

The minimum coverage must be for the loan amount or full replacement cost.

builder / renovation / vacant coverage is required.

*for a loan in process confirm with your loan officer or processor the correct coverage amount and other details.

A “subject to” appraisal is a combination of the current value plus improvements detailed in a renovation budget and scope of work to determine a new fair market value (ARV). It is not only based on the cost and scope of improvements it also considers what like homes in the same renovated condition would sell for. It is not always a $1.00 for $1.00 gain on improvements. It may equal less, more, or an equal amount in return.

For SFR = 700 sq. ft. 2-4 family 500 sq. ft.per unit in the minimum.

Our minimum loan amount is $75,000 with a minimum ARV of $100,000.

The maximum loan to value (LTV) for renovation financing is calculated several ways.

  1. ARV Maximum
    The maximum ARV cap is 75% of the after repair value.
  2. Purchase LTV
    The maximum Purchase cap is 90% of as is value.
  3. Renovation Maximum
    Up to 100% of renovations up to the remaining funds after deducting 90% of purchase price from 75% of ARV.

Our minimum loan amount is $75,000, our origination charge is usually 2% – 3% of the loan amount.

The origination fee for loan amounts under $100,000 is a $2,000.00 flat fee plus .75% (3/4 of 1%) if a renovation loan.

All loans have other fees and charges including 3rd party fees for appraisal, & title, filing fees, taxes on the property and transaction. Our loan officers always provide detailed closing cost estimate with rate quotes.

30 Year - 1-4 Family

Yes – we have options for up to 10 years interest only payments.

Yes – we require an appraisal on all lending programs. Renovation and construction financing require a “subject to” appraisal. Long term purchase and refinance require “as is” valuations and a rent comparable analysis to determine fair market rent.

In Florida and Kentucky it’s 85% for Purchase 80% LTV in all other states. 80% rates and term, and 80% cash out allowed. These are maximum LTV’s – check guidelines for individual programs for any LTV caps or restrictions.

For SFR = 700 sq. ft. 2-4 family 500 sq. ft.per unit in the minimum.

Our minimum loan amount is $75,000, our origination charge is usually 2% – 3% of the loan amount.

The origination fee for loan amounts under $100,000 is a $2,000.00 flat fee plus .75% (3/4 of 1%) if a renovation loan.

All loans have other fees and charges including 3rd party fees for appraisal, & title, filing fees, taxes on the property and transaction. Our loan officers always provide detailed closing cost estimate with rate quotes.

Property

Yes – we require an appraisal on all lending programs. Renovation and construction financing require a “subject to” appraisal. Long term purchase and refinance require “as is” valuations and a rent comparable analysis to determine fair market rent.

A “subject to” appraisal is a combination of the current value plus improvements detailed in a renovation budget and scope of work to determine a new fair market value (ARV). It is not only based on the cost and scope of improvements it also considers what like homes in the same renovated condition would sell for. It is not always a $1.00 for $1.00 gain on improvements. It may equal less, more, or an equal amount in return.

Foreign National Lending

Yes! We have programs that allow non-US citizens to purchase and finance USA real estate.

Our 30 and 40 year long term programs and our short term renovation programs allow non-citizens.

Please contact a Radar Lending loan officer for details. you can find more information here
https://radarlending.com/foreign-national-lending/

Construction Lending Questions

Yes – we have a ground up construction lending program. The minimum loan amount is $250,000, the maximum LTC is 75%. The client is required to provide 25% of the cost to build. This may include credit for lot if already owned. Please check with one of our loan officers for details.


 

 

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