Lending Guidelines
At ePrivate Lending, we pride ourselves on providing fast, reliable funding for your Real Estate Investments. Please review our lending guidelines below to ensure we meet your needs to make the process seamless.
Investment Property Types– Single Family and Multi-Family.
Borrower– Borrower shall be an entity with Members or Directors of the business listed as Guarantors. Spouses will not be on the loan however will need to sign Guarantee at closing.
Loan Purpose– The loan can only be used for business investment purposes and cannot be used for personal, family or household purposes.
Credit Requirement– There is no minimum credit score however we do review the last 24 months pay history. This includes No Mortgage late pays, Bankruptcies or Foreclosures within the past 24 months.
Loan Size– Up to 1 million.
Interest Rate –The qualifying interest rate will be based on cash investment, loan to value, credit, assets, loan type and loan term. Once your application is approved, you will receive a Loan Commitment letter stating the approved interest rate.
Term– Terms are from 1 day to 12 months plus depending on the loan program chosen. Up to 6 months extensions are available at lenders discretion.
Loan to Value– Max After Repair Appraised Value is 70% and Max Current Appraised Value is 80%
Payments- Loan payments are set up as Interest Only payments so there is less monthly expense and more cash flow.
Closing Costs– Closing costs will mostly consist of title, appraisal and lender fee. The lender fee can vary depending on cash investment, loan to value, credit, assets, loan type and term. Once your application is approved, you will receive a loan commitment letter disclosing the lender fee.
Pre-Payment Penalty– There is no Pre-Payment penalty on any loan program. Feel free to pay off loan any time before the term expiration.
Escrow of Taxes and Insurance– Taxes are required to be paid directly to the county when due and insurance is required to be paid directly to the insurance provider when due.
Appraisal– Appraisals are not required on all loans. If an appraisal is required, the cost will vary depending on the type of property and its complexity. Appraisals are completed by a third-party Licensed Appraiser and is required to be paid at the time of Inspection.
Construction Disbursements – Funds for construction will be held by a third-party escrow holder. Construction disbursements will be limited to a maximum of two disbursements per month unless otherwise approved by the lender. It is important to estimate the construction budget as accurately as possible. This will be used as the checklist to disburse funds when construction items are completed.