Investor Loans for Renovations
OPTION ONE - We have relationships with local banks who will lend 100% of the purchase price and repair costs for your project as long as the loan is 75% or less of the after repair value.
REQUIREMENTS - Full Doc Only. Need good credit and good assets. A Bank CD of 10% of the loan will be required to be put on deposit with the bank during the time of the renovation but the CD can be returned/canceled at the end of the project with no penalties or fees. You will also need a take out letter from NorthEnd Mortgage in order to qualify for this program.
STRUCTURE – Interest rate of PRIME plus 1% to PRIME plus 2%. 6 month to 12 month period, renewable. 2 Points Origination. Interest Only payments paid monthly. Depending on the situation the bank may require the interest payments to paid up front as part of the deposit.
Once the renovation is complete you then get a permanent loan from NorthEnd Mortgage as a “take out” loan for permanent financing on the home if it is rental or you list it and sell it to pay off the bank if it is a re sale property.
OPTION TWO - PRIVATE MONEY LOANS, terms and conditions vary, but we often 9% to 12 % interest with 2 to 5 Points. Requires a permanent loan refinance from the construction loan within a 90-120 day period from the construction closing. The program is based on investors purchasing property and then keeping it for rental or at least until the market turns around -- or sell it after the permanent mortgage is in place.
REQUIREMENTS - Full Doc Only or Stated Income. Need good credit and good assets. You will also need a take out letter from NorthEnd Mortgage.
STRUCTURE – Interest rate of 9% to 12%. 6 month to 12 month period, renewable. Interest Only payments paid monthly.
OPTION THREE - We have relationships with local banks HARD MONEY LENDERS who will lend 100% of the purchase price and repair costs for your project as long as the loan is 75% or less of the after repair value.
REQUIREMENTS - Average credit and some assets. You will also need a take out letter from NorthEnd Mortgage in order to qualify for this program.
STRUCTURE – Interest rate of 14% fto 16%. 12 month period. Interest Only payments paid monthly.
Once the renovation is complete you then get a permanent loan from NorthEnd Mortgage as a “take out” loan for permanent financing on the home if it is rental or you list it and sell it to pay off the bank if it is a re sale property.
If you have any questions about this loan product please click here, or if you would like to pre qualify plese click here.
If you have any questions about this loan product please click here, or if you would like to pre qualify plese click here.
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