Need Private Residential Funding For An Investment Property ???
This Is What We Need To Provide Funding
Pay Stubs, Tax Returns, W-2s, K-1s, Business Plans
Underwriting Guidelines and Rules To Provide Funding
- Borrower credit score of 700 or above
- Borrower must have a legally correct purchase contract for purchase of subject property
- Borrower must have previous verifiable experience (the more experience, the lower the rate)
- Property must close in a legal entity (corp or LLC) that they are part of that is verifiable through state registration website.
- Borrower must provide a current legal operating agreement
- Borrower must show in a bank account that they own or are beneficiary of sufficient cash to close plus reserves
- Reserves must be equal to 20% of the rehab amount plus 3 months payments.
- Borrower must have homeowners insurance equal to 120% of the loan amount in a builders risk policy with a minimum of $500,000 in general liability and lender must be named as an additional insured
- Borrower must complete an application for each property
- Borrower must pay for an Appraisal of the subject property and a Construction Feasibility Study Inspection (plus any other inspections required by the state the property is located in)
- Borrower may not take out any second liens on the property to try and accommodate no money out of pocket for the purchase of the property.
- If it is a refinance borrower must have taken title two years previous or loan amount will drop to 80% of the actual amount paid for the property not to exceed 60% of the property value
- Borrower himself MUST sign the loan documents, for anyone else to do so this may be construed as fraud