Investor-Rehab Financing
Brian Dodd & Gulf States Mortgage have established themselves as one of
the leaders in Investor-Rehab financing.
What is Rehab Financing?
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Gulf States
Mortgage is one of only a few lenders to offer Rehab Financing - a
loan targeted exclusively to the rehabilitation of properties in
need of repair. |
What is your Down Payment?
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You make
absolutely no down payment as long as your loan amount is no higher
than 90% of the ARV [After Repair Value]. You will be required to
make a 2% deposit at the interim close this deposit will be refunded
after
permanent
close. |
What properties do we
accept as collateral?
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Gulf States
Mortgage considers the following property types as acceptable
collateral: owner occupied, second home & non-owner occupied up to a
4-plex. |
What properties don't we
consider?
How do we determine the
appraised value?
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Easy. We send out
an independent appraiser who is familiar with real estate in your
local area. You give the appraiser an itemized list of repairs and
improvements that you'll make to the property. The appraiser then
determines the property's current and future value after all the
repairs are made. |
What are the terms?
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The interim loan is a 60 day balloon note (90 days, if needed).
No payments are due during interim period. |
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Exit Option One:
If you decide to rent out the property instead of selling it, we
will give you a long-term (10-30yr fixed rate) permanent loan at
extremely attractive rates. |
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Exit Option Two:
If you need a longer than expected time to fix up or sell the
property, we'll extend the loan. (maximum of 90 days) |
Can the deed be held in a
corporate name?
What if the property
doesn't need any repair?
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That's fine.
Gulf States Mortgage will still offer you a loan based on the loan to
value (LTV) of the appraised value as opposed to the purchase
price. So, if you're buying the property at a discount, you can
still do it with No Money Down! |
What else do I need to know?
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Time Frames: |
Pre-Qualification
--usually within the same day.
Closings --as soon as we get the appraisal and title report.
Your whole start to finish process is about 30 days. |
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Loan Amounts:
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Minimum --$15,000
+ Repairs
Maximum--$250,000 |
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Costs: |
The typical cost for this program is 9.5% interest for the interim
loan with 2 points and some general closing costs. The permanent
loan carries very attractive rates with typically 2 points and
general closing costs. Rates are determined by your credit. This is
a regular conventional loan with usually no mortgage insurance. |
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Disbursement: |
At the interim or first closing, we advance the purchase price,
initial closing costs and the repair money will be set up in a draw
account. As you make repairs, we disburse the repair proceeds.
It's typically in installments of $5,000.00 or more. |
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Creditworthiness: |
We need 620
middle score for full doc, 660 middle score for stated. |
So
here's a practical example of a rehab loan....
An investor can buy a distressed single family property for $70,000,
He believes that he can fix it up to salable condition for $10,000. When
the repairs are done, it should be able to sell for approximately
$100,000.
In this case... we can loan the
borrower up to $90,000 which is 90% of $100,000!
In other words...
We'd give him:
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the 70,000 to
buy the
property |
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the 10,000 to
fix it up |
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plus any money
for closing costs
on both the interim and permanent loan... |
He wouldn't need any
of his own money!!!
If you would like to
schedule an appointment to have Ray go over this incredible Rehab loan
program with you, please call or e-mail him to make an appointment. |
