Rehab loan funding criteria & processes from Avatar Financial
2004-08-15
Avatar Financial Group offers loans for rehab projects. Please check our rehab loans criteria below. If your rehab loans request qualify, please fill out our 2-minute online loan request and we will get back to you within one business day.
Rehab Loans Criteria List:
Minimum loan size: $500,000 The value of your loan must be at least $500K. We can fund loans up to $10 million, but the LTV rates hold, so if you require a $500,000 loan, your property must have a current, signed appraisal indicating its value is $770,000 or over.
Maximum loan to value: 65%
The value of your real estate is established by the price for which you purchased it, not by its potential resale value after the rehab is completed. As noted above, the current value of the real estate which will collateralize your rehab loans must be at least $770,000 to meet our minimum requirements for a $500,000 loan.
No land
If you are intending to remove the structures on a piece of land and build new units, then yours is not a rehab loans request. You will require a construction loan. Avatar Financial Group does not provide construction loans.
Minimum Equity: 20%
You must have a minimum of 20% of your own money invested in the property. For example, if you buy real estate for $1,000,000, you must have a minimum equity (your own money) of $200,000 invested in the project.
Use of Funds for Rehab Loans
Avatar Financial Group does not have restrictions on the use of funds from our rehab loans. On rehab loans, it is assumed that the funds will be used to rehab real estate properties. However, you may collateralize your rehab loans with one piece of property, assuming all the criteria are met, and use the funds to renovate or rehab another piece of property. Be prepared to prove that the loan makes “sense”, and you are able to make regular payments as required.
Close in 2 Weeks
Avatar Financial Group prides itself on funding quickly and efficiently. If your rehab loans request is time sensitive, fill out our 2-minute online loan request form and we will get in touch with you within 1 business day. You may also wish to take a look at our online loan application form and begin gathering your documentation to be sure your loan process moves smoothly.
Working With a Broker or Going Direct
Avatar Financial Group’s base lending rate is 11% + 3pts. If you work with a broker, you should expect to pay an additional 2-6 points for their services. If you make your rehab loans request directly with Avatar Financial Group, only 1 (one) point will be added to the base lending rate to process and manage your account. By working directly with Avatar Financial Group, you may save between 1 and 5 points on rehab loans.
Rehab Loans Criteria List:
Minimum loan size: $500,000 The value of your loan must be at least $500K. We can fund loans up to $10 million, but the LTV rates hold, so if you require a $500,000 loan, your property must have a current, signed appraisal indicating its value is $770,000 or over.
Maximum loan to value: 65%
The value of your real estate is established by the price for which you purchased it, not by its potential resale value after the rehab is completed. As noted above, the current value of the real estate which will collateralize your rehab loans must be at least $770,000 to meet our minimum requirements for a $500,000 loan.
No land
If you are intending to remove the structures on a piece of land and build new units, then yours is not a rehab loans request. You will require a construction loan. Avatar Financial Group does not provide construction loans.
Minimum Equity: 20%
You must have a minimum of 20% of your own money invested in the property. For example, if you buy real estate for $1,000,000, you must have a minimum equity (your own money) of $200,000 invested in the project.
Use of Funds for Rehab Loans
Avatar Financial Group does not have restrictions on the use of funds from our rehab loans. On rehab loans, it is assumed that the funds will be used to rehab real estate properties. However, you may collateralize your rehab loans with one piece of property, assuming all the criteria are met, and use the funds to renovate or rehab another piece of property. Be prepared to prove that the loan makes “sense”, and you are able to make regular payments as required.
Close in 2 Weeks
Avatar Financial Group prides itself on funding quickly and efficiently. If your rehab loans request is time sensitive, fill out our 2-minute online loan request form and we will get in touch with you within 1 business day. You may also wish to take a look at our online loan application form and begin gathering your documentation to be sure your loan process moves smoothly.
Working With a Broker or Going Direct
Avatar Financial Group’s base lending rate is 11% + 3pts. If you work with a broker, you should expect to pay an additional 2-6 points for their services. If you make your rehab loans request directly with Avatar Financial Group, only 1 (one) point will be added to the base lending rate to process and manage your account. By working directly with Avatar Financial Group, you may save between 1 and 5 points on rehab loans.
