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.

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.

30 Year - 1-4 Family

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.

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.

 

 

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