Frequently Asked Questions
How Much Interest Do You Charge?
Although a poor credit score does not determine your ability to get funded, it will affect your interest rate. Other factors are experience, having at least 3 months payments in the bank and whether you have alternate income. That said interest rates run from 9 to 19 percent. We will know more after I submit my Vetting Worksheet and get a quote back.
How long does the loan process take ?
(7 to 14 days) The process depends on the borrower getting all of the paperwork done in a timely manner. Myself or one of my minions will be following up with that. Loan applications that run on for too long get put on the bottom of the pile and will require personal attention to re-kindle the process. Please submit all of the paperwork in a timely manner.
Do you loan money on any OLD property?
No, we do not loan money on vacant land. We will finance ground up construction, but you need to own the land.
No, we do not loan money on owner occupied homes.
Yes, we do loan money on
1. Residential Properties 1 to 4 units
2. The ultimate sale price does not exceed FHA maximum
3. The size of the house should not exceed 2800 Square feet.
4. Maximum Bedrooms 5, Maximum Bathrooms 3
5. The size of the property should not exceed 1/2 acre.
However, a credit score over 680 or a down payment of (20% or more) trumps 3, 4 and 5.
We do have a formula we use as a guide as to whether a deal has a chance of being successful.
ARV X 70% less rehab costs equal Max Purchase Price. If you can’t buy the property for that Max Purchase Price, there is a good chance you will have a hard time turning a profit.