LOAN PROGRAM
We can usually underwrite and close a loan in 10 days or less as long as developer provides requested documentation when requested.
Borrower Criteria
While we do evaluate the individuals behind a development company, and we do require a personal guarantee; unlike a conventional mortgage bank, we can still approve most loans even if the strength of the guarantor is not perfect.
- Minimum of 3 prior development projects completed successfully with HUD-1’s to support purchase and exit
- Minimum Credit Score of 640+ (must provide letter of explanation for lower scores)
- Loans are only made to development legal entity in good standing with the county and state of formation
- Personal guaranty from borrower required
- First liens only
- Loan amounts up to 70% of the After Repaired Value (excluding points & fees)
- 6 month term
- 2 month optional extension (extension fees may apply)
- 12% – 14% interest only payments with balloon at term end
- 3, 4, or 5% origination fee, depending upon loan amount
Prior Developments
Credit Score
%
Up to 70% ARV
Fix & Flip Loans
| Product Type | Experience | Credit Score | Down Payment | Loan Term | Loan Rate | Origination Points |
|---|---|---|---|---|---|---|
| No Cash Out of Pocket - Loan Under $200k | 3 Deals in 3 Yrs | 625+ | None | 6 Months | 12.00% | 5.0% |
| No Cash Out of Pocket - Loan $200k - $499k | 3 Deals in 3 Yrs | 640+ | None | 6 Months | 12.00% | 4.0% |
| No Cash Out of Pocket - Loan $500k+ | 3 Deals in 3 Yrs | 650+ | None | 6 Months | 12.00% | 3.0% |
| 90 LTV Acquisition | 3 Deals in 3 Yrs | 700+ | 10% of Acquisition | 6 Months | 11.00% | 3.0% |
| 80 LTV Acquisition | 3 Deals in 3 Yrs | 675+ | 20% of Acquisition | 6 Months | 10.50% | 2.5% |
| 75 LTV Acquisition | 3 Deals in 3 Yrs | 650+ | 25% of Acquisition | 6 Months | 9.99% | 2.0% |
* Terms displayed above are typical for loan amounts between $150,000 – $650,000, but are subject to change. Additional leverage adjustments are possible depending on borrower experience, credit score, project specifics, etc.
Rental Finance Term Loans
| Product Type | LTV | Credit Score | Loan Term | *Loan Rate* | Minimum Points | Minimum DSCR |
|---|---|---|---|---|---|---|
| Great Credit - Under 55 LTV | < = 55% | 760+ | 30 Years | 5.75% | 2.0% | 1.25% |
| Great Credit - 60% LTV | < = 60% | 760+ | 30 Years | 6.00% | 2.0% | 1.25% |
| Good Credit - 65% LTV | < = 65% | 700 - 759 | 30 Years | 6.50% | 2.0% | 1.25% |
| Good Credit - 70% LTV | < = 70% | 700 - 759 | 30 Years | 6.75% | 2.0% | 1.25% |
| Good Credit - 75% LTV | < = 65% | 700 - 759 | 30 Years | 7.00% | 2.0% | 1.25% |
* Additional leverage adjustments are possible depending on borrower experience, credit score, leased/unleased, refinance/purchase,etc.
Apply for funding
Coefficiency provides short term financing for residential real estate development needs from Richmond to the Tidewater Region.
Get in touch
Click below to learn more about our services and loan program. At Coefficiency we want to be your capital partner.