Loan Programs
We offer “FIRST POSITION” loans on:
- Single family homes
- 1 – 4 unit properties
- Apartment buildings
- Commercial buildings
- Owner occupied purchases, Investor purchases & re-finances
- We do not offer 2nd position loans, land loans, or “owner occupied” refinances at this time.
(Terms in orange are explained further on our FAQ page, please click to learn more)
Loan amounts of $25,000 to $500,000
LOAN TERMS, FEES, & RATES
- 6 month Interest Only—the greater of $2,000 or 4 points 12% interest rate
- 1 Year Interest Only—the greater of $3,000 or 6 points, 12% interest rate
- 14 Month Interest Only—the greater of $3,400 or 6.75 points, 12% interest rate
- 2 Year Interest Only—the greater of $5,000 or 10 points, 12% interest rate
- 3 Year Interest Only—the greater of $6,000 or 12 points, 12% interest rate
- 5 Year Fully Amortized—pays your property off over 5 years. Just like a car loan—the greater of $5,000 or 10 points, 12% interest rate
- Loan programs above can be structured to include funds to reimburse the investor for up to 70% of renovation costs.
In addition to costs of points, there will be $1,800 in various administrative fees.
Typically there is no prepayment penalty on our loan programs.
Need a loan program not listed? Just ask, let us come up with one to fit your needs.
Payments are made and accounted for through a 3rd party loan servicing agent
Most investor loans are given on a No Doc or Low Doc basis, owner occupied loans are Full Doc.
- Up to 70% of purchase price on an acquisition
- Up to 65% of appraised value on a refinance
- Up to 80% CLTV (20% cash down payment, 60% first position BRAD LOAN, up to 20% 2nd mortgage or 2nd position seller carry-back financing)
- Up to 100% LTV/CLTV with “Cross Collateralization”
We customize a loan to your specific needs and circumstances taking into consideration:
- The amount of down payment
- Quality of the area in which the property is located
- Amount of renovation the property requires
- Qualifications and experience of the borrower
- The length of time you need the loan
Example:
$100,000 purchase price, borrower puts $30,000 down (30%). The Brad Loan finances $70,000 with monthly interest payments of $700 plus $25 loan serving fee to third party loan servicing agent. In addition to interest, your monthly payment would include your payment of 1/12 of the annual taxes and insurance which would accumulate in your impound account to pay your taxes and insurance when they are due. In this example, you pay $30,000 (30% down payment) $4200 in points (6 points) + $1800 admin fees. In addition you should budget an estimated and approximate amount of $2,000 for Title Company fees, insurance, account servicing set up fee, appraisal fee. See question 18 in FAQ’s .
How Much Are My Monthly Payments?
It is easy to determine an interest only payment as they are typically calculated at 1% per month of the loan amount. For example, a $40,000 loan is $400 per month, $60,000 is $600 per month, $85,000 is $850.00 per month, $92,500 is $925 per month.
Below is a simple way to estimate the monthly payment on a 5-year fully amortized loan. Monthly payments are $22 principal and interest per month for each $1,000 borrowed. For example:
- $30,000 loan: 30 x $22 per $1,000=$660/month principal & interest payment
- $40,000 loan: 40 x $22 per $1,000=$880/month principal & interest payment
- $45,000 loan: 45 x $22 per $1,000=$990/month principal & interest payment
- $50,000 loan: 50 x $22 per $1,000=$1100/month principal & interest payment
To the above interest and/or interest only and principal payments add $25 title company loan servicing fee and impounds of 1/12 of the taxes and insurance.
LOAN PROGRAM FOR REHAB PROJECTS
ACQUISITION COST + RENOVATION COST LOAN PROGRAM
These loans are done on a case by case basis, but below is an example to give you an idea of how it works.
- We fund up to 70% of total of acquisition and estimated renovation costs
- We release up to 70% of acquisition cost at Close of Escrow
- We release remaining loan proceeds to finance renovations at completion of renovations (to insure Lender they get completed)
Example:
Purchase Price\Acquisition cost: $60,000. Estimated renovation costs: $30,000. Acquisition cost of $60,000 plus renovation costs of $30,000 = $90,000.
As long as we are comfortable that the house will appraise for $90,000 or more after renovations, we would provide a loan of up to 70% of the total cost, in this case up to 70% of $90,000 for a loan amount of up to $63,000.
Details of the above example:
Since we would consider this a $90,000 acquisition ($60,000 purchase price + $30,000 renovation costs) allowing for a $63,000 loan, we would fund the entire $63,000 loan to the Title Company at the time of purchase, but would allow the Title Company to release only up to $42,000 (70% of acquisition price) at closing toward funding the purchase. The remaining $21,000 would be released to the borrower at completion of renovations to insure to the Lender the renovations are completed since they are a integral part of the collateral. In this example, the buyer would need to come in with at least $27,000 cash down (based on the $90,000 total acquisition) plus all loan and other 3rd party closing costs (estimated at $7,500 or so for this example). Simply put, the cash requirement of the borrower at purchase would be $34,500 or so to close on the property, and they would need to have their cash for renovations as well, and get reimbursed for the bulk of their renovation costs when the remaining $21,000 is released to them at completion of renovation (this example based on a 1 year interest only loan).
APR cannot be determined until loan costs, determined by the terms of your particular loan, are calculated in to the equation. All fees quoted herein for our various loan programs are typical estimated fees to demonstrate an example of how we work. Your fees may vary due to your specific circumstances.
Fill out our 5 minute online application and let us give you a rate and terms quote for your custom BRAD LOAN.
SPECIAL FINANCING on SUPER HOMES!
See our Properties page for special lower interest rate loans, reduced
down payment requirements, as well as extended terms on BRAD LOANS secured by our inventory of specially renovated Brad Homes. We have some excellent properties that have lower interest rate Seller Carry-back financing with no loan fees. Some of these homes are total upscale renovations and MOVE IN READY.
