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.

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.

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.

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.

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.