The ‘Rehab’ Loan
This loan is designed for investors who want to buy a property, fix it up and then either sell it or refinance it. It’s a 12-month loan with interest-only payments and a balloon after 8 months. Here are the basic terms of the loan:
- 13.9% interest per annum. Interest-only payments.
- 3.9 points paid at closing.
- 12-month loan. During an extension period, the interest rate increases to 16.9%.
- $295 application/home valuation fee. This fee is due at the time of the home valuation.
- $95 per draw fee.
- $600 to King Title to review the title work and issue the loan docs. This fee is waived if the loan closes at King Title.
- No prepayment penalty.
- Personal guarantees required.
- 50-65% LTV based on the after repair value (ARV) for homes in Baltimore City
- 65-70% LTV based on the ARV for homes in the counties outside of Baltimore City.
- This is a commercial loan.
- Property cannot be owner-occupied. This loan is for non-owner occupied homes only
- Property must be located in Maryland.
The ‘Rental’ Loan
This loan is designed for rehabbers and landlords who are buying a home and will rent it or rehabbers who don’t have a clear exit strategy. Many investors would like to buy properties, but due to the tightness of the lending environment for investor loans (especially in Baltimore), financing is just not available. This loan fills that niche.
- 16% interest per annum. Interest and principle payments
- 6 points paid at closing.
- 60-month loan. Fully amortizing. The loan will be paid in full after 5 years.
- $295 application/home valuation fee. This fee is due at the time of the home valuation.
- $95 per draw fee.
- $600 to King Title to review the title work and issue the loan docs. This fee is waived if the loan closes at King Title.
- No prepayment penalty.
- Personal guarantees required.
- 50-65% LTV based on the after repair value (ARV) for homes in Baltimore City
- 65-70% LTV based on the ARV for homes in the counties outside of Baltimore City.
- This is a commercial loan.
- Property cannot be owner-occupied. This loan is for non-owner occupied homes only
- Property must be located in Maryland.