Commercial Lending, LLC is a great choice for financing your next single-family residential real estate investment. As a private direct lender, we work with you to tailor your financing to your specific needs. Our underwriting criteria are based primarily on the property being purchased, so you avoid the extensive paperwork and personal financial information usually required by banks and mortgage companies.
Our basic loan criteria are:
• LTV up to 50%-65% of After Repaired Value
• Six month or twelve month balloon
• No monthly payment on six month loans – interest accrues (partial payment required in MD and DC)
• Monthly payment required on twelve month loans
• 12% annualized simple interest
• 6 points for funding fees
• No application fee
• $500 – $1,000 commitment fee (due upon acceptance of our loan offer)
• $125 pre-purchase inspection fee (in some cases)
• $375-$500 appraisal fee (withheld from loan proceeds at purchase)
• $475 document preparation fee (withheld from loan proceeds at purchase)
• 8 $250 repair inspection fee (for each repair draw, withheld from draw)
• Closing usually within 7 to 10 days of approval
• Repair escrow required for funds (disbursed upon completion) (draw request form)
• Builders risk hazard insurance required (mortgagee clause/insurance)
• Appraisal required in some cases through our approved appraisers
• No survey or termite report required
• No pre-payment penalty
• No cash-out at closing for repairs
• Borrower may be required to bring cash to closing in most cases for closing costs and points at a minimum
• No second mortgages – we only lend in first position
• No owner-occupied loans – investors only!
• Loan amounts from $50,000 to $500,000
• No employment verification
• No minimum credit score requirement (credit report will be reviewed prior to loan review)
• No income verification (no W-2’s, pay stubs or tax returns)
Commercial Lending will be conducting progress inspections on your property. These inspections are mandatory, and are checking for the timeliness of the work being done on the home. Progress inspections will occur every 3 to 5 weeks. You must put a lock box on the home with a code we will provide you. You need not attend the regular inspection, but you may want to be present for a draw inspection.
Funds for rehab and repair are withheld from the loan proceeds at closing of the purchase and funded upon completion of repairs (draws are available for larger projects) and satisfactory inspection by our inspector. Repairs must be completed in accordance with the agreed scope of work before inspection and funding. There will be no funds advanced for repairs prior to completion of work. More information can be found here.