The builder identified an exceptional site for the construction of nine luxury homes. Unfortunately, the local bank declined the loan application, citing concerns about the loan amount and the number of homes involved. In collaboration with the builder, we worked closely to secure funding for the project. Leveraging the project's equity, we were able to provide a substantial cash reimbursement of $378K at settlement. Remarkably, we achieved a Loan-to-Cost (LTC) ratio of 72%, all accomplished without the need for income verification. This successful deal has resulted in a satisfied and content customer.
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Project Dev. |
Fix N’ Flip |
Ground Up |
Equity Renovation |
Base Rate: |
10%-12% |
9%-12% |
10%-12% |
10%-12% |
Min Loan Amount: |
$250 K |
$100 K |
$500 K |
$500 K |
Max Loan Amount: |
$50 M |
$10 M |
$100 M |
$75 M |
Max Refinance LTV: |
60% |
75% |
75% |
65% |
Max Purchase LTV: |
65% |
90% |
75% |
70% |
Max LTC: |
70% |
90% |
85% |
70% |
Maximum ARV: |
70% |
70% |
70% |
70% |
Minimum FICO: |
620 |
600 |
660 |
580 |
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Jackson City, TN - $644KSFH - Assisted Living Housing
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A committed borrower is eager to acquire this substantial income-generating assisted living home. Initially, the qualified home fell under the lite-doc loan program, necessitating a 25% down payment, which proved challenging for the borrower due to insufficient funds. In response, we have successfully restructured the loan terms to require only a 10% down payment with seller hold 20% second note to ensure the successful funding of this promising investment.
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The borrower acquired the hotel two years ago at a substantial discount through a private loan. The property's poor condition hampered revenue, making it ineligible for conventional loan guidelines. Diligently, we have labored to restructure the financing under the SBA framework, presenting an assertive projection to meet the criteria for a hotel renovation loan. The loan has been successfully funded, attaining 62% ARV with a 12-month mortgage reserve.
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Little Rock, AR - $4.9MSBA Hotel Renovation Loan
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