Common sense underwriting is always our approach. We want to know how much experience the borrower has when it comes to not only buying and selling homes but managing a rehab too. If the borrower has minimal construction experience, then we expect the proposed rehab to be of a reasonable size and scope. We look at how much cash the borrower is working with today. We do not lend borrowers 100% of the money needed to purchase and rehab a single project. A borrower must have cash in the deal too. We visit the property to evaluate the area, the home, and the size of the construction project. Overall, the deal must make sense when it comes to the investor risk and exposure a property presents in relationship to the profit that can be made.
Another item we look at includes a flood certificate determination. We determine if a property is in a flood plain. If so, a flood policy must be purchased before the closing. If a property sits in a flood zone which requires a borrower to buy a flood policy in order to secure financing, it can negatively affect the value of the property.
We review an entity’s certificate of good standing. This document demonstrates the entity was legally formed and has been properly maintained.
Our application requires that you submit each borrower’s driver license, 3 months of (personal) bank statements, and your most recent tax return.