Loan Fees
- *Interest Rates starting as low as 10% (interest-only payments)
- **As low as 3-4 points origination (3%-4%) (depends on deal and location)
- Appraisal Fee: $TBD on average (varies by market and turnaround time needed)
- Draw Inspection Fee – $TBD
- Loan Documents: $475
- Loan Admin Fee: $500
- Credit Report Fee: $45
- Flood Certificate Fee: $15
- Monthly Servicing Fee: $15
Loan Terms
- A mortgagee’s title policy is required.
- An insurance policy is required on all loans for the term of the loan.
- Up to 75% of the After Repaired Value in Rental properties (excluding points and fees), not to exceed 100% of cost *Proof of Refinance Required
- Up to 70% of the After Repaired Value on Flips (excluding points & fees), not to exceed 100% of cost.
- 6-month term
- 3-month optional extension (extension fees may apply) 1 year extensions will require a reappraisal.
Borrower Criteria
- Minimum Credit Score of 650
- Minimum of $15,000 to $25,000 or more in a Checking, Savings, IRA and/or 401(k) account
- No Recent Bankruptcy or Foreclosures (subject to review by “The Company”)
Property Criteria
- First Liens Only
- Single-family, 2-4 unit, townhomes (no condominiums or manufactured homes).
- Our loans are made on the After-Repaired Value (ARV)
- Appraisals must be ordered by “The Company” and performed by a third-party appraiser.
- Properties should be located in or around Birmingham, preferably within a 45-minute driving radius.
- “The Company” reserves the right to adjust advance rate requirements as deemed necessary.
Appraisals / Insurance
All appraisals will be based on After-Repaired Value (ARV)
- Appraisals will only be ordered by “The Company”
Borrower MUST provide a minimum 6-month insurance policy to be paid in full at closing. Borrower’s insurance agent should provide a certificate of insurance or evidence of insurance, including invoice, to our processing department prior to closing.
- Insurance premiums are to be paid in full at closing. NO EXCEPTIONS.
- Dwelling only coverage must include vacancy and vandalism riders. A builder’s risk policy is preferred for rehabs over $20,000.
- If a borrower has a blanket policy, the insurance agent must provide proof of insurance showing the addition of the new property and showing proof of in-force blanket policy.
- Replacement cost coverage is required.
- The lender must be named as loss payee and additional insured.
Order your insurance early! Delay in providing insurance coverage can delay the closing of your loan!
Approval Requirements
- 600 Minimum Credit Score
- 6 Months Liquid Reserves
- No Recent Bankruptcies/Foreclosures
Additional Requirements
- Processing Fee $995.00
- No Tax Return/Employment Verification Needed
- Residential (1-4 Family) Investment Properties Only
- First Lien Only
- Appraisals & Inspections Must Be Ordered By “The Company” Lending
- Borrower Must Provide 6 Months Insurance Policy (Term of Loan) Required To Be Paid in Full
- Loan Requirements May Be Adjusted By “The Company” Lending at Its Sole Discretion
**Borrower is eligible for The Legacy Preferred Program after 3 loans have been closed & paid off with “The Company” Lending.**
Fix and Flip Loan Details
- 12% Interest Only Payments
- 2-3 Points Origination
- 6 Month Term and 3 Month Auto Extension*
- Up to 95% of Total Project Costs Covered (Purchase + Rehab) or 70% of ARV,
whichever is the lesser value of the two.
*Additional Points and Fees May be Applicable
Approval Requirements
- 600 Minimum Credit Score
- 6 Months Liquid Reserves
- No Recent Bankruptcies/Foreclosures
Additional Requirements
- Processing Fee $995.00
- No Tax Return/Employment Verification Needed
- Residential (1-4 Family) Investment Properties Only
- First Lien Only
- Appraisals & Inspections Must Be Ordered By “The Company” Lending
- Borrower Must Provide 6 Months Insurance Policy (Term of Loan) Required To Be Paid in Full
- Loan Requirements May Be Adjusted By “The Company” Lending at Its Sole Discretion.
Rental Property Loan Details
- As low as 9.99% interest only payments
- 2 – 3 points origination
- 24 – 36 month term
- Up to 80% LTV Purchase or 75% LTV Cash Out Refinance
Approval Requirements
- 600 Minimum Credit Score
- 6 Months Liquid Reserves
- No Recent Bankruptcies/Foreclosures
Additional Requirements
- Processing Fee $995.00
- No Tax Return/Employment Verification Needed
- Residential (1-4 Family) Investment Properties Only
- First Lien Only
- Appraisals & Inspections Must Be Ordered By “The Company” Lending
- Borrower Must Provide 6 Months Insurance Policy (Term of Loan) Required To Be Paid in Full
- Loan Requirements May Be Adjusted By “The Company” Lending at Its Sole Discretion.
Individual Borrowers Checklist
Details & Requirements
- Copy of your most recent month’s bank statements (all pages), checking, savings, money market, certificate of deposit, etc.
- Fully executed contract
- Title company contact (name, e-mail address, and phone number)
- Detailed Renovation Budget along with bids from contractors
- Certificate of Insurance for the property (6-month policy must be paid in full on or before loan closing)
Business Entity Borrowers Checklist
Details & Requirements
- Certification of Formation
- Letter of good standing from the Alabama Secretary of State and Certificate of Account Status from the Alabama Comptroller of Public Accounts
- Organization documents (Partnership Agreement, Operating Agreement, Articles of Incorporation)
- EIN form from Internal Revenue Service
- Copy of the Company’s most recent month’s bank statements (all pages), checking, savings, money market, certificate of deposit, etc.
- Fully executed contract
- Title company contact (name, e-mail address, and phone number)
- Detailed Renovation Budget along with bids from contractors
Certificate of Insurance for the property (6-month policy must be paid in full on or before loan closing)
1 – OBTAIN PRE-QUALIFICATION
This portion of our process will consist of completing the loan application, pulling a credit report, and reviewing your mortgage options
2 – GATHERING THE REQUIRED DOCUMENTATION
Pay stubs from within last 30 days
Last 2 years W-2’s and Full Tax Returns
Most recent 2 months bank statements.
Copy of Driver’s License & Social Security Card
3 – PRE-APPROVAL ISSUED
4 – CHOOSING THE HOME
Select/View Properties
Write an Offer to purchase – Earnest Money
Negotiate/Counter Offer/Accept Offer
Home Inspection (Typically $250-$550+)
5 – BUILDING YOUR MORTGAGE
In this step, we have you sign all loan documents/disclosures , lock in your interest rate, and order the appraisal ($495+/-)
6 – FILE IS SUBMITTED TO UNDERWRITING
7 – FINALIZING
Here, the file is approved with conditions. You will receive an email from the loan processor notifying of any additional items needed.
8 – PROCESSOR REVIEWS
All final conditions are submitted to underwriting.
9 – FINALIZING CLEAR TO CLOSE
The closing disclosure is requested 24 hours from the clear to close.
THE DOCUMENTATION YOU WILL NEED
-W2 AND TAX RETURNS – MOST RECENT 2 YEARS
-MOST RECENT 30 DAY PAY STUBS
IF SELF-EMPLOYED:
-TWO YEARS COMPLETE TAX RETURNS
-PROFIT AND LOSS STATEMENT SIGNED BY ACCOUNTANT
-BUSINESS LICENSE
IF USING CHILD SUPPORT, ALIMONY, RETIREMENT, DISABILITY, OR SSI INCOME
-CHILD SUPPORT/ALIMONY – PROOF OF RECIEPT FOR 3 MONTHS & PROOF OF CONTINUANCE FOR 3 YEARS
-AWARDS LETTER (LAST TWO YEARS)
-3 MONTHS BANK STATEMENTS
-ASSET ACCOUNTS – MOST RECENT 2 MONTHS (ALL PAGES)
-SS/VA BENEFITS – AWARD LETTER
-SOCIAL SECURITY CARD
-STATE-ISSUED DL