CG REAL ESTATE FINANCING AND FUNDING
NOTE: The given information (including, but not limited to interest rates) will vary depending on the period of the loan submission and process
CGRE Division
CGRE-CV-Investment-Property-Loans OVERVIEW
CG REAL ESTATE FINANCING AND FUNDING
NOTE: The given information (including, but not limited to interest rates) will vary depending on the period of the loan submission and process
CGRE Division
CGRE-CV-Investment-Property-Loans OVERVIEW
SINGLE PROPERTY LOAN
SINGLE PROPERTY LOAN
l ONLY Individual (Loan are possible to Foreign Citizenship) and LLC or Corporation
l Non-owner occupied investment 1-4 unit properties (i.e., home, condo, duplex, and other single family properties)
l Purchase or Refinance Loan
l Minimum Occupancy/Leased of 180 days for purchase and 60 days for refinance
l Loan-to-Value of 65% to 80%
l $100,000 or more in Present Market Value
l $75,000 to 750,000 Loan Amount per property
l 30 years Long Term Loan
l Fixed interest rate of 6-8%
l 3-6 months of monthly payments of principals, interests, taxes, insurances, and home owner's association fees (PITIA)
l Minimum of 620 FICO / Credit Score (Note that lower FICO will require more cash reserves or liquidable assets)
l Debt-to-Income Ratio of 70% if $150,000 or less cash flow and 85% if $150,000 or more cash flow
l Pre-payment (Early Loan pay-off) penalty of 3% in First Year, 2% in Second Year, and 1% in Third Year
l Funding in 21 days if all of the necessary documents and information are submitted
l All states in the USA
l No upfront fees and fees can be paid from the loan amount
PORTFOLIO LOAN
PORTFOLIO LOAN
l ONLY LLC or Corporation
l Non-owner occupied investment 1-20 unit properties (i.e., home, condo, duplex, and multi 5-20 units properties) NOTE: Maximum of $1 million loan for 5 or more unit buildings
l Purchase or Refinance Loan
l Minimum Occupancy/Leased of Units is 90%
l Maximum Loan-to-Value of 75%
l Minimum of 7 properties
l $50,000 or more in Present Market Value (BUT, $100,000 or more in Present Market Value in Baltimore MD, Chicago IL, Cleveland OH, Detroit MI, Los Angeles CA, Miami FL, New Haven CT, New Jersey (All cities), New Orleans LA, Oakland CA, and Philadelphia PA)
l Minimum Loan Amount of $700,000
l 5 year and 10 year Balloon Loan with amortization of 30 years or Interest Only monthly payments
l Fixed interest rate of 5-7%
l 3-6 months of monthly payments of principals, interests, taxes, insurances, and home owner's association fees (PITIA)
l Minimum of 660 FICO / Credit Score (Note that lower FICO will require more cash reserves or liquidable assets)
l Minimum Debt-Service Cover Ratio (DSCR) is 1.15x for principal and interest monthly payments and 1.20x for interest only monthly payments
l Pre-payment (early Loan pay-off) penalty of Yield Maintenance or Declining Points for life of the loan
l Funding in 21 days if all of the necessary documents and information are submitted
l All states in the USA
l No upfront fees and fees can be paid from the loan amount
CV EXPRESS DOCUMENTATION LOAN (EL) SUMMARY OF TERMS
CV EXPRESS DOCUMENTATION LOAN (EL) SUMMARY OF TERMS
l Loan benefits: Fewer required documents; less stringent experience requirements; streamlined process
l Single property loan (NOT Line of Credit Loan)
l 9 months verified experience. Acceptable experience should include real estate investing; managing or owning investment properties; a licensed realtor; or operating as a licensed contractor or builder, including building or doing major renovation on personal residence as the General Contractor
l 9 month term with optional 1 point, 3 month extension
l 620 minimum FICO/Credit Score
l No 30 day late payments on any mortgage during the past 12 months nor 60 day late payments during the past 24 months
l Borrower’s credit report must reflect a 3-year history with at least 4 trade lines reporting and 1 trade line open and active for at least 12 months paid as agreed
l No Bankruptcy or No Foreclosure within the past 2 years
l Loan-to-Cost (LTC) of 80% (85% if FICO/Credit Score is at least 650)
l Maximum percentage of After Repaired/Renovated Value (ARV) is 65% up to a 649 FICO/Credit Score; 70% if FICO/Credit Score is at least 650; and 75% of After Repair/Renovated Value if FICO/Credit Score is at least 680 and loan amount is at least $125,000
l Higher Advance Rate on Renovation. we can finance 5% more of the renovation expenses than the advance rate on purchase expenses (e.g. if a Borrower qualifies for 85% Loan-to-Value, we can fund up to 90% of renovation expenses, subject to After Repaired/Renovated Value% cap). Loan must be at least $100,000
l For refinances, the initial advance will be determined by the lower of the property purchase price and as-is appraised value if property has been owned less than 1 year from the date of application. If the property has been owned at least 1 year from the date of application, the as-is appraised value will be used. The as-is value may be used for properties owned 6-12 months at our discretion
l Required liquidity will be seasoned for at least 60 days as of the closing date. Such funds shall equal at least 20% of the property purchase price, plus: (i) 25% of rehabilitation/repaired expenses if there is a rehabilitation/repaired holdback, or (ii) 75% of rehabilitation/repaired expenses if there is no escrow holdback
l 60 day bank statements and construction budget (if construction is significant)
l Loan size of $55,000 to 3,000,000
l Loans are personally guaranteed
l We will order, at Borrower’s expense, a construction inspection whether or not there is an escrow hold-back
l No personal financial statement or net worth test
l No pre-payment penalty after 3 months (3 months minimum interest)
l $995 processing/underwriting fee (includes appraisal), plus $135 document preparation fee
l All states in the USA
l No upfront fees and fees can be paid from the loan amount