Hard Money Lender for Colorado Residential Rehabs - no pre-payment penalty
Property Location: all Colorado metro areas - urban and suburban locations (no rural areas)
Property Types: SFR, condo, multifamily
Loan Amount: $50k - $400k
Pre-payment penalty: none
ARV (After Repaired Value): up to 70%
Minimum ARV amount: $100,000
Interest Rate: 15% - 16%
Origination Fees: 3.5% - 5%
Loan Term: 6 months (may be extended an additional 6 months)
Lender will fund up to 90% of the loan amount not to exceed 70% of ARV including origination points. Closing costs and fees are not included.
All borrowers MUST enroll in auto-drafting for payments.
Risk Based
Loan is based upon the risk of the deal. Borrower's Credit, Liquid assets and experince are all considered.
Credit Reports
Payment history & credit scores are considered for all hard money loans regardless of amount. Borrowers must have a 620 or Higher Mid-Score with 0 late pays in the last 12 months. Lender will pull credit for all new borrowers.
Appraisal and Inspection
Lender will order Appraisal and Inspection Vendors paid at time of service by borrower. Jumbo loans requre TWO full appraisals
Appraisal Fee
$350.00 - For both an As Is and As Repaired Value
Loan To Value
Up to 70% at lenders discretion subject to: property condition, inspection and appraisal
Escrows / Impounds
6 mo. Hazard/Builders Risk Insurace required. All insurance MUST have a Theft Rider
Property Taxes
All loans will have Seller Property Tax Credits held in Escrow by Lender. A Pro-rated amount will be added to monthly payment.
Doc Prep Fee
$450.00 Payable at Loan Commitment
Contact Lender
Can I get repair money?
Yes. Lender will fund 100% of the repairs. They require a Scope of Work And General Contractor's Bid to be included with the application to identify the order in which you will repair the property, Copies of the bids from the vendors. Then, they will pay you as the work is completed and inspected, they do not pay in advance for any work.
EXAMPLE:
Lender will provide funding, for qualified investors up to 70% ARV (After Rehab Value). On a house with an ARV of $150,000 that means an investor could qualify to borrow up to $97,500. 100% of the rehab amount will be escrowed for construction draws and the balance will be available to be used towards the purchase price.
Does my credit matter?
Yes. For the most part, lender looks at the value of the property after it is repaired, how much you are paying for it, and how much the repairs will cost to determine how much they will lend. However, they do require that borrowers have a minimum Mid Score of 620.
Do I need an appraisal?
Yes, the lender requires "as-is" & "as repaired" appraisals from one of their "approved" appraisers.
Does the lender require inspections?
Yes, they require inspections including the interior before funding and before a repair draw to ensure the work is completed in a satisfactory manner.
Do I need to put any money down?
Yes. Typically a borrower will bring 15% - 20% to closing. They want to ensure that you have enough resources to finish the repairs and cover the costs of the loan plus any surprises.
How long does it take to fund?
The lender can fund as-soon-as they have the appraisal, proof of insurance, a title policy, and a letter from the title company that they will follow closing instructions. After submitting the lender's Loan Application, you can expect a preliminary answer within 1-2 business days and funding within 48 hours of receiving the information they need from the title company. A typical loan takes 2 weeks from application to closing
How many loans can I have opened at any one time?
Provided you are current on all of your loans, no limits are set.
How much will my payments be?
To figure your monthly payment simply multiply the interest rate by the loan amount and divide that number by 12.
Will the lender finance commercial properties?
No.
Does the lender allow interest to be deferred to the end of the loan?
No, their programs have interest payable monthly.
Does the lender require a survey?
Yes. They will accept an existing survey if there have not been any structural changes.
What paperwork do I need to do?
Once you fill-out the lender's application, they will need a copy of the Contract and the Scope of Work.
Does the lender do refinances?
Yes, they do.
Does the lender loan on rural property?
No. They sometimes make exceptions on a case-by-case basis.
Does the lender loan on rental property?
They can loan on rental property, but you will need to have the property refinanced when the term ends.
Does the lender lend on properties in the flood zone?
Yes. However the Max LTARV is 60%.
Once the Loan has Closed can I deviate from the "Approved" Scope of Work?
No. If you do you will be solely responsible for any increase in costs over and above the original approved items and their associated costs.
See other CO Private Money Loan Programs
Company: DHLC
Disclaimer: all information herein is believed to be correct, but we do not guarantee its accuracy and rely on prospects to rely only on their own investigations.
Lender loans real estate investors money to purchase and rehab real estate. They can fund quickly, typically within 72 hours of receiving the final docs from the title company. Hard Money is available for adequately collateralized loans on single-family residential houses and other residential property. There are just 4 simple steps to this loan program: get a contract, fill out an applications, provide the required documents, and close the loan.
The application covers the below 3 topics.
* Credit authorization
* Borrower information
* Property Evaluation
The Credit Authorization information is used to pull credit, lender requires a minimum of a 600 MID Score.
The Borrower Application information is used to gather the information needed for the Promissory Note and Deed of Trust.
The Property Evaluation Information identifies the important points on your deal, how much you are paying, how much is needed in repairs, how much the house will sell for, and a list of some of the other costs. This will give you a good idea of how much profit is in the property for you. After submitting these forms, you can expect a preliminary answer within 1-2 business days and funding within 7-10 days, if everything is ready and the title company has their work done.