Rehab loans are short term solutions for property acquisition and repair. Typically investors sell the property or put into service as rental properties though a long term mortgage solution. see Texas Investment property loan overview of long term options
We can be flexible with 6,9, 12 month loans with options to renew and extend. This is extremely important if you( an investor) is considering keeping as rental property.
I. STEPS:
- Apply (online or download the hard money application)
- We send approval letter so you can make offers on your investment property
- Once you have a contract, we review property with you and schedule appraisal or site visit.
- We issue loan terms for closing
- Generally our side is ready to close in 10 days (as fast as 3 days if needed)
II. LOAN CRITERIA FOR HARD MONEY REHABS IN TEXAS:
CASHOUT – UP TO 70% LTV
PURCHASE & REHAB– UP TO 70% ARV (we typically want investors to have 10% into any deal, but if you can make a case that you buying at real discount we have financed 100% of project cost)
OR 80-90% OF PURCHASE PRICE (the better your deal, the higher the LTV on purchase
PURCHASE AND REHAB LOANS (in Texas 1st and 2nd markets)
CROSS COLLATERALIZE OTHER PROPERTY (NO OUT OF POCKET POSSIBLE)
SHORT SALES SOLUTIONS
EVEN LONGER TERM TO 30 YEARS POSSIBLE (soft money from 9.5- 10.5) rental property loans
III. LOAN MATRIX :
| Geographic Area: |
Texas (austin,dallas,san antonio,houston) and the surrounding suburbs. Others considered
Dallas- Fort Worth (North Texas Area)
Central Texas ( Waco,Belton,Temple)
Austin – San Antonio (South Central including Surrounding areas , like
Roundrock, Cedar Park, Lakeway, Dripping Springs, to Boerne, San Marcus, Kyle
South Texas (Harlingen,McAllen, Cameron and Hidalgo Counties , South Padre area and more
Other States (OK, CO, UT,TN,FL,IN,AZ,NM,GA,MD, DC)
. |
| Property Type: |
Residential (non-owner occupied),( 1- 4 unit)
owner occupied available with 25% down and 600+ credit.
Commercial (see commercial hard money site)
Rehab and New Construction |
| Loan Size: |
$35,000 Minimum-No Lending Limit/Cap (may go lower , will not loan on property worth less than 90k ARV |
| Loan Term: |
1 year - 3 years for hard money -bridge
10 -30 years for our proprietary rental property loans |
| Interest Rate: |
Interest Only-Varying depending upon LTV, Credit, Term, Etc.
12-13 % 6 AND 12 months
|
| Loan Origination Fee: |
2.5 - 5 Points (pending ltv, loan size and length of term) |
| Loan to Value: |
Up to 75% on residential rehab.
(varies by property and location) |
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