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