These FAQ’s are some of the questions that we frequently get asked. The questions and answers are not intended to be exhaustive, nor do the questions and answers create any relationship or duty on our part to assist or lend to you. The information, however, is intended to be helpful and to assist you in determining if a hard money loan is a good fit for you. If we haven’t answered your question here, we encourage you to contact us to discuss your specific question or need.
How does the program work?
We make business purpose real estate loans Nationwide to investors who buy single-family residences (SFR’s), new construction lots, multi-family properties, 5 + Unit apartment complexes, mixed-use properties and multi-tenanted commercial property. Investors then renovate or build new homes and sell them or refinance them to rent out. We work very hard to fund deals quickly so that you can demand large discounts from sellers. We are a very good fit for people who can buy right, fix a property up quickly, and then get it re-sold or refinanced.
In a nutshell, there are three easy steps to our loan process:
- Submit an application to get pre-approved.
- Find a property, get it under contract and prepare a cost estimate for repairs.
- Send us the information and then we process and close the loan if the investor and property qualifies.
What are the costs?
As your lender of choice, CCF is committed to fast approvals and smooth closings so you can purchase properties below market. Our terms vary based on the individual buyer profile, asset profile and length of term
Repair Funds
Up to 100% of repair cost.
Points
Typically 2-5 points (paid at closing).
Interest Only
Typically 8-12% interest.
LTV
Up to 75% based on After Repair Value.
States
Our core business is in Virginia and North Carolina but we also lend in 40 other states nationwide. Other locations will be considered on a case-by-case basis.
Term
Typically 6-24 months. Longer terms available on a case-by-case basis.
Credit Score
Although not a requirement for loan approval, CCF likes to see a 620 minimum score.
Closing Costs
Additional closing costs are due at time of closing.
Will you finance apartment buildings?
Yes, however strong cash and a strong credit score are needed to qualify for these larger loans. Please contact us for more information.
Do you lend on properties in a flood zone?
Yes, however, flood insurance is required prior to closing.
Will you loan money in my corporate, LLC or trust name?
All loans at present are made to corporations, LLC’s and trusts only. We DO NOT lend to individuals personally.
Do you pull my credit for each loan?
Yes. We pull complete background checks, including credit, on all borrowers. This helps us to determine that you will still be able to qualify for permanent financing when it comes time to refinance. Our goal is to make sure that you are able to refinance out of the hard money rehab/private capital loan, as soon as possible.
What kind of credit rating do I need to get approved for a loan?
Our approval is based upon your past credit history, credit score, funds available, credit cards(s), available balance, and the value of the property you want financed. We look at the total overall potential of the Investor. CCF likes to see a minimum credit score of 620. Although our decisions are based primarily on the asset and the borrower’s ability to execute, we look at your credit and background to get a good feel for the person or persons who are borrowing the money.
How long does it take to get approved for a loan?
Within 2-3 business days, after you have submitted your loan application and all documentation, we can usually make a decision or give you a general idea if we can help you.
Remember, each loan is unique. Some loans can easily be closed in 10 days while others may take three weeks or more.
How long does it take to close the loan once I have been approved?
There are many factors that prevent us from making any guarantees as to if/when a loan will close. If you have already been pre-approved in advance, it normally takes around seven business days once you find a property and submit the property information to us. Sometimes it takes a little more or less. We have closed in as few as two (2) days.
Many times it all depends on how long it takes to collect your loan documents, have a title search completed, get the appraisal and schedule a closing. There are other factors that can also delay a closing.
Always allow yourself plenty of time when writing your contract.
Should I have a property under contract before I fill out the loan application?
No. CCF can pre-approve you for our loan program prior to finding the right investment property.
Our process is two-fold in that we approve the applicant and we approve the investment property you are interested in financing.
We recommend that you go ahead and get pre-approved so once you find a property to purchase, we can close faster.
Can I get a loan to purchase the property and rehab it?
Yes! We will fund the purchase and all your repairs up to seventy percent (70%) Loan to Value (LTV), if you and the property qualify.
We do require you to complete a detailed, itemized repair list and budget. A draw schedule identifies the number and amount of each draw.
How many investment properties can I finance at one time?
That depends on the borrower profile, experience level and how many other projects that are currently in process.
Will I need to get an appraisal?
CCF will order an appraisal from a qualified appraiser of their choosing who is familiar with evaluating investment properties. The appraiser will determine an “after repaired value” (ARV) based on the list of repairs that you and your contractor will be completing.
The cost of the appraisal is usually between $350-$600. Commercial or multiple units could be substantially higher.
Rush fees may be incurred for appraisals needed in less than 5-7 business days.