When considering purchasing a home, you’ll likely have questions. Whether about which loan type is best for you, what is PMI and when is it required, what is an appraisal and why is it necessary and or about the overall loan process in general. Take a quick read below and if any of your questions aren’t answered, kindly give us a shout or drop us a quick message. We’ll be sure to not only add them to our current FAQ’s but also get your questions answered in no time!
Our Company & Loan Process
- They LOVE that we help them
- GROW their business AND
- avoid making mistakes (please see our Award Winning FAQ’s & Investor Tool Box sections of our website along with your 411 Investor Resource Center)
- No Payments for up to 6 months
- Borrow up to 75% LTV
- Non-Recourse Loans
- Our Blink Rewards Program. Rather than tell you we are thankful (to you) for choosing us again, we thought we would show you by lowering your interest rate by -.25% -.50% for every loan you have completed. Do more deals, pay less interest and grow your profits.
General Loan Questions
- The Guarantor aka Borrower/Client/Investor &
- The Collateral aka the Property.
- Credit Score – Lenders love lending money to those with a history of doing what they say and a Guarantors Credit Score is the numerical representation of the financial agreements they have entered and kept as promised. The higher the score, the more likely the loan is going to be approved. We tend to work with clients who have a credit score above 600.
- Income – The question every Lender asks itself is how will we be paid back? Income is important in that it determines the ability to repay (the loan) and the financial capacity of the investor/person guaranteeing the loan.
- (liquid) Assets – Although income answers the question of how will we be paid back, a guarantor’s assets answer the question of what happens if ________? By in large, investors make smart decisions and rarely do things completely derail from the plan but if they do, lenders want to be assured their loan will be protected. The more liquid assets an investor has, the more comfortable and the higher the likelihood of approval.
- Address –The better the location, the lower the risk and the lower the risk, the higher probability of approval.
- Purchase Price – How much are you buying the house for? That’s the starting point of all loans -- without a purchase price (even if it’s $0, as silly as it sounds), there is no loan.
- Estimated Renovation Budget – This is one of the most important items in the process and often overlooked.
- Do the renovations support the future ARV? How much money needs to be put aside in the Renovation Escrow Account?
- How long will the renovations take (the higher the amount of renovations the longer the renovation timeline) and how much money is the Guarantor/Client/Investor brining to closing (if any)?
- Are the Renovation Costs & Contractor Budget in-line with the Scope of Work (is the investor being taken advantage of?)?
- Are all the necessary renovations listed and/or is there anything that was missed?
Qualification Requirements
- Credit Score – Lenders love lending money to those with a history of doing what they say and a Guarantors Credit Score is the numerical representation of the financial agreements they have entered and kept as promised. The higher the score, the more likely the loan is going to be approved. If your credit score is less than 620 we are likely not the lender for you.
- Income – How will we be paid back is the question every lender asks. Income is important as it determines the ability to repay (the loan) and the financial capacity of the person guaranteeing the loan and
- (liquid) Assets – Although income answers the question of how will we be paid back, a guarantors assets answer the question of what happens if ________? By in-large Investors make great decisions and rarely do things completely derail from the plan but if they do, lenders want to be assured their loan will be protected. The more Liquid Assets a borrower has, the more comfortable and the higher the likelihood of approval.
Interest Rates, Loan Terms, Loan Types & Fees
- Short Term Private and Hard Money where we lend on both the After Repair Value or the Purchase Price/Acquisition Cost.
- Long Term Traditional Lending with conventional fixed interest rate terms ranging from 8 – 30 years (refinance or purchase)
- Cash Out loans on both the home you live in or 2nd homes and/or investment properties
- Bank Statement and/or Lease Agreement qualification Loans
- Non-Recourse Loans
- Gap Funding
- Land/lot Loans