How is the loan amount determined?
The total loan amount offered is based on the after-repair value (ARV) that is provided in the appraisal. The loan amount cannot exceed 65-70% of the ARV.
What is After-Repair Value?
After-Repair Value (ARV) is the estimate of what the property can be sold for after it is rehabbed or built.
What is included in an ARV Appraisal?
Market comps and the scope of work to be completed to the property are used to assess the value of the property after it is completed.
Can these products be used for Personal Home Loans?
No, these loans are strictly for Non-Owner-Occupied real estate investment properties that are putting the properties into an LLC or other corporations.
How are the construction funds provided?
Construction funds are reimbursed through construction draws based on the percentage of work completed on the property. The scope of work is used to determine the percentage complete.