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Private Lending

Rehab/construction loans

A construction loan is a short-term loan used to finance the building of a home or another real estate project. The builder or home-buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding or selling the property. Because they are considered fairly risky, construction loans usually have higher interest rates than traditional mortgage loans.

  • Construction loans are used for rehabbing a home or new construction for up to a period of one year.

  • A budget is completed by the investor or builder prior to purchase.

  • Funds are distributed for the purchase of the property at closing and then in construction draws based on the percentage complete.

  • The borrower is only required to make interest payments on a construction loan based on the current balance while the project is still underway.

  • After construction on the house or building is complete, the borrower can refinance the construction loan into a permanent mortgage or sell the property to pay off the construction loan.


bridge loans

Also known as interim financing or gap financing, bridge loans bridge the gap during times when financing is needed but not yet available. Both corporations and individuals use bridge loans and lenders can customize these loans for many different situations.

  • A bridge loan is short-term financing used until an investor or developer secures permanent financing or removes an existing obligation.

  • Bridge loans are short term, typically 6 months to 1 year. Interest is paid monthly or accrued until the loan is paid.

  • Bridge loans have relatively high interest rates and are backed by collateral, such as real estate.


RENTAL/DSCR LOANS

WHAT IS A DSCR LOAN? A Debt-Service Coverage Ratio (DSCR) loan is based upon cash flow from rental income. Approval for the 30-Year Rental Loan will occur if there is enough cash flow from the rental income received on a particular property to cover the outstanding monthly debt on the property.

The primary qualification for a DSCR loan is the cash flow of the subject property (income divided by expenses) and the borrower’s credit score. Loan qualification is NOT based on pay stubs, tax returns, or personal income.

  • Fast Closings

  • 30-Year Fixed Rate Amortization Loans

  • For Cash-Out Refis, Rate-And-Term Refis, and New Purchases

  • 70 - 80% LTV

  • No Tax Returns Required

  • 660+ FICO Score

  • $100,000 Minimum Property Value

  • Single-Family and 2-10 Unit Residential

  • Eligible Entities: LLCs and Individuals


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