Loan Programs and Details

Thank you for your interest in our company.  In general, our loans are based upon the After Renovated Value otherwise commonly referred to as ARV. We finance both the acquisition and renovation of the property and our loans are made to business entities with a personal guaranty from the owners.  Feel free to download our PDF flyer by clicking here

Commercial Lending Specifics

• We lend on residential 1-4 family units including town homes but no condominiums or manufactured homes
• We lend "up to" 70% of the ARV and/or 100% of the acquisition cost
• 1 appraisal required and ordered by RezCap Funding, LLC
• The guarantors must have at minimum a 640 credit score and no prior bankruptcy or foreclosure

Initial Required Documentation for Approval (we will Pre-Approve borrowers who have not yet selected a property)

• Personal Financial Statement (PFS) for guarantors
• Business Profile Form
• Personal and Business Tax Returns for the most recent year and a year to date profit and loss
• Most recent 2 months asset statements for the business and/or guarantors
• Drivers license copy for all guarantors
• Executed Sales Contract (unless Pre-Approval)
• Project Scope/Description (a general idea of the project which includes the acquisition cost, the renovation amount and description of improvements, and the expected ARV)
• Completed Loan Application (apply online at http://www.rezcapfunding.com)
• Itemized Renovation Estimate
• Entity Documents
  • If LLC we need consent from the members to engage in this specific transaction, formation documents, certificate of good standing, operating agreement, proof of EIN)
  • If Corporation we require company by-laws, certificate of good standing, formation documents, articles or organization, corporate resolution, and proof of EIN)

Prior to Closing Requirements and Policies

_{click here for the PDF version of generic policies}

• Title commitment free and clear of any liens/judgments
• Home owners insurance policy good through the loan maturity date
• Appraisal and realtor opinion of value
• Executed Loan Terms Sheet (provided by RezCap)
• Fully executed Sales Contract
• Survey if required by underwriting
• Reserves equal to 6 months Interest Payments on New Loan (we use 60% of qualified retirement investments)

Insurance Requirements

• The borrower must provide proof of insurance on the subject property – must be effective through the loan term
• We must be listed as the mortgagee (RezCap Funding, LLC ISAOA)
• Replacement cost coverage is required
• The insurance policy must include a vandalism rider
• The policy must be a builders risk policy or must include a construction rider

Typical Loan Fees/Interest Cost

• 8.50%-14.49% interest during the term of the loan
• 6 month balloon with interest only payments required during the term
  1.99-4.99 points in origination fees based on the total loan amount
• Third party charges for appraisal, flood cert, title fees, credit report, inspections, loan documents, etc
• Once a property is identified a non-refundable application fee will be required

Closing/Draw Process

• Soon after closing, the process of renovation should begin.  We understand the importance of delivering timely funds to the contractor during the process and are confident that our process allows just that.  _{Click here for the PDF version of generic policies and procedures.}