Investor Rehab Loans - FAQ

1. Do I need to put any money down?
It depends on how good your deal is. If the value is there to cover the purchase price, closing costs and repairs at 70% ARV, then no. 

2. How much are closing costs?
Standard closing costs including tax and title insurance. We can provide a good faith estimate.

3. How do I figure out what the as-repaired value is?
That's the $64,000 question. Your realtor should be able to give you a good idea. You will not go wrong with recent sales comps within one mile of the subject property.

4. Why do you need to pull my credit if this is a hard money loan?
Our loans are qualifying private money loans. These loans are funded by private lenders and must be underwritten.

5. How long does it take to fund?
Two days (Colorado) to two weeks from receipt of appraisal, proof of insurance and clear title.

6. How much will my payments be?
To figure your monthly payment (if interest only), simply multiply the rate by the loan amount and divide that number by 12. The payment for a $100,000 loan at 15% would be $1250 (100,000 x 15% divided by 12 = $1250).

7. Will you finance commercial properties?
This program is for residential up to 4 units only. If you're looking for a rehab loan on 5+ units, see our commercial loan programs page.

8. Will you finance apartment buildings?
See #7.

9. Do you allow interest to be deferred to the end of the loan?
No.  Interest only payments must be made monthly.

10. Is refinancing available?
Once the project is complete we are happy to refinance this loan into a conventional loan against the new value to reduce your monthly costs.

11. Are loans available for rentals instead of flips?
Yes, but remember you will need to have the property refinanced before the 6 month maturity of your loan.

12. What if the house I'm buying has structural damage?
We will not lend on houses that have structural damage.

13. Do I need an appraisal?
Yes. A full appraisal is required generating both an "as-is" and an "as-repaired" value. Appraisals must be paid for in advance.

14. Can I choose my own appraiser?
No. The lender will use their own appraiser in each market.

15. How do I get started?
We just need to take a standard loan application and run credit to pre-approve you. It takes about 15 minutes and we can take it over the phone, in person or you can apply online. We will issue a loan commitment letter to your realtor to include with your offers.

16. Can you loan on a house in Alabama?
Maybe. Outside of Colorado we work with a few reliable rehab lenders. No rural areas will be considered.

17. Is there an application fee?
No. We will take a credit card to cover your appraisal.

18. I'm a broker. Do you co-broker deals?
For rehab loans in Colorado, yes.

19. Is there a minimum loan amount?
Yes, $75,000 except in Colorado.

20. Is there a maximum loan amount?
Yes, it's $300,000. 

21. Is there a reserve requirement?
Yes. You need a minimum of 6 months ITI ( Interest, Taxes and Insurance) in liquid reserves. Personal or business and it cannot be from retirement accounts. 

22. What if this is my first rehab project?
We prefer that you have experience. In fact, we ask for the addresses of the last two projects you have been involved with. If this is your first, it won't automatically disqualify you but we will look to the strength of your contractor.

23. Do my reserve funds need to be seasoned?
Yes, we need three months seasoning.

22. Can I have more than one loan at a time?
You can have two to start. After you have a history and have paid off a few, you can have more as long as your reserves support it.

Not intended for properties with structural damage. All loans subject to credit approval.