Q&A Real Estate/Mortgage/Hard Money Loan

Q & A REAL ESTATE – MORTGAGE – HARD
MONEY LOAN
What types of real estate does our lender financed?
We lend on most types of real estate including industrial, retail, office,
multi-family, mini-storage and single-family projects, wholesale
properties,REO.
Do you offer short or long-term financing?
provides alternative financing solutions for borrowers who have been turned down by the
bank for a traditional loan or for those who need cash quickly.
Our streamlined process allows us to approve and funds loans in a matter of days based
solely on equity in the property and the purpose for the loan.
What are the different types of traditional mortgage loans?
Fixed-rate loans, ARMs, FHA loans, VA loans, jumbo loans – the list may
seem long, but it may be in your best interest to become a knowledgeable
first-time home buyer and understand your loan options.
What are mortgage points?
Some homebuyers get lower payments by paying a percentage of interest up
front. This option, called “buying points,” can lower your interest rate and
monthly payments – but it may not be right for everyone.
What is a mortgage APR?
The Annual Percentage Rate helps you compare payments and total cost
between mortgage offers -it’s just one of the many factors to consider when
shopping for a mortgage loan.
How does my credit score affect my mortgage rate?
Good payment habits and a low debt/income ratio can mean a lower mortgage
rate – and if your credit score isn’t what you want it to be, you can improve
it over time.
What’s the difference between prequalification and pre-approval?
First one is when we check the borrowers credit and their income that they
meet the requirements, we will be able to tell the borrower the range of the
purchase price and pre-approval is what you will show the seller when the
client found a house and has a condition that all documents will be submitted
and subject to verification.show you’re a serious buyer – one gets you started
and the other makes it official.
How do I make an offer on a house?
Making an offer on a house is a formal process, which is why it may be helpful
to have a competent, experienced real estate agent on your side.
What should be my down payment on a new house?
A down payment demonstrates your commitment and a larger down payment
can help you secure a better interest rate – which means you’ll have lower
monthly mortgage payments.
What documents are part of the mortgage process?
Now is the time to get organized. As a home buyer you’ll be required to prove
things like how much they earn, where you’ve lived, monthly debts and account
balances.
What happens at a mortgage closing?
“Closing” is the last step in the home-buying process. It’s where all the parties get
together to finalize the transaction by exchanging signatures, checks – and ultimately,
house keys.
FHA.
Loans are insured by the Federal Housing Administration, homebuyers have an
easier time qualifying for a mortgage. Those who typically benefit most by an FHA
loan are first-time home buyers and those who have less than perfect credit.
it’s easier to qualify for, low down PAYMENT, lower credit borrowers to qualify,
better interest rates, better home stability
VA LOAN.
VA home loan program is to supply home financing to eligible veterans and to help
veterans purchase properties with no down payment. The loan may be issued by
qualified lenders.
The VA loan allows veterans 103.3 percent financing without private mortgage
insurance(PMI). or a 20 percent second mortgage and up to $6,000 for energy
efficient improvements.
A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA;
this fee may also be financed and some may qualify for an exemption.
In a purchase, veterans may borrow up to 103.3% of the sales price or reasonable
value of the home, whichever is less.
HARP.
The Making Home Affordable Refinance Program (HARP Phase II). is a government
backed mortgage program that allows most borrowers, with existing Fannie Mae
and Freddie Mac loans to refinance their homes even if they owe more than their
home is worth, have an adjustable rate mortgage, have been turned down for a
refinance loan or loan modification in the past, or just can’t afford their mortgage
payment anymore.
Reverse Mortgage.
If you’re aged 62 or older and own your home you might be eligible for a reverse
mortgage.
this is a loan designed to allow seniors to draw upon the equity in their homes.
Seniors can select to receive the loan proceeds either by a lump sum payment, by
monthly installments, as a line of credit or as a combination of a line of credit and
monthly installments thus providing income even after retirement.
The reason this type of mortgage is called a “reverse mortgage” is because the
money goes directly to the homeowner instead of into paying for the home.
Commercial/Apts
Conventional.
Traditional loan programs that usually require 5% down and offer competitive
interest rates. Documentation and fair-to-good credit are necessary.
Jumbo Loans.
Offers 30 and 15 year fixed rate mortgage and competitive ARM products with
full document, alternate documentation and limited documentation.
Cash out and No cash out refinance are allowable.
Single family detached, Condo’s, PUD’s and single family second homes can be
financed with no prepayment penalty.
Second Mortgage Loans.
Subordinate to the first mortgage, these loans offer the borrower the ability to
get money for home improvement, debt consolidation, or many other reasons
without disturbing their first mortgage.
Convenient when you have a low interest first mortgage.
Construction Loans.
Building a new home can be an exciting prospect, unless you get caught up in a
construction loan approval process that is overly complicated and time consuming.
With this loan, we will finance up to 90% of the cost of land, plus the costs of
construction.
We offer a one-time fixed rate closing or traditional ARM products.
Investor Loans.
Used to finance 1-4 family properties that will be for investment.
Challenged Credit Loans.
These mortgages are for borrowers with less-than-perfect credit.
They can vary from slightly damaged credit to severely damaged.
Regardless of your situation, we have a mortgage that will get you back on track.
High Debt Ratio Loans.
A ratio of monthly bills to monthly income higher than 50% is considered a high
debt ratio.
Loan programs are available for borrowers in this situation, allowing them to finance the
purchase of a home or property.
If I have bad credit, a recent bankruptcy, foreclosure or short sale can I still get a hard
money loan?
Yes. We are exclusively concerned with the equity in the property and the purpose for the
loan.
Do I need to go through a long, onerous process to get a hard money loan from your
company?
No. If you own or are purchasing a property and need private money financing give us the
opportunity to assist you. We typically pre-approve loans within 24 hours and can fund in as
little as 7 days.

HARD MONEY LOAN APPROVALS

A hard money loan is a
specific type of asset
based loan financing
through which a
borrower receives funds
secured by the value of a
parcel of real estate.
Hard money loans are
typically issued by
private investors or
companies.
Interest rates are
typically higher than
conventional
commercial or
residential property
loans because of the
shorter loan durations
associated with hard
money loans.
Most hard money loans
are used for projects
lasting from a few
months to a few years.
our investors provides
alternative financing
solutions for borrowers
who have been turned
down by the bank for a
traditional loan or for
those who need cash
quickly.
We help borrowers who
cannot qualify for a
bank loan or who
simply need capital
quickly.
Approval requirements
are based solely on
equity in a residential or
commercial property
and the purpose for the
loan.
get Up to eighty percent
Loan to Value.
eighty five percent
CLTV.
TYPE OF LOANS.
Purchase, Refinance,
Cash-Out Equity.
Residential and
Commercial.
Land and Construction
loan.
Mobile and
Manufactured Homes.
Investment Property
Purchases.
Owner Occupied Single
Family Residence Cash
Out Business Purpose.
Investment Property
Refinances.
non owner occupied
residential properties.
Buy and Hold.
Rate and Term.
Cash Out and Re
finance.
Bridge Financing.
1, 2 and 4 YEAR LOAN
TERMS.
Rehab Fix and Flip
Loans.
our investors will lend
you eighty percent of
the purchase price, and
one hundred percent
RENOVATION cost.
ALSO, WE CAN
PROVIDE YOU POCKET
LISTINGS!
WHOLESALE
PROPERTIES THAT ARE
thirty to eighty percent
BELOW MARKET
VALUE!
EXCLUSIVE LISTINGS
AND DEEP DISCOUNT
PROPERTIES!
NO AUCTION! NO
BIDDING WARS!
We can help you finance
a wide variety of
Commercial and
Construction
Development Projects
and can provide up to
50 million dollars in
capital for larger
transactions and
opportunities.
also, check out our two
new programs.
FIRST, our Fresh Start
Loan.
for individuals whose
first day out of
Bankruptcy,
Foreclosure or Short
Sale.
Rates are fixed.
no surprises.
Long term loan options.
OUR other new program
is,
medicine cannabis
investment properties.
There is an extremely
bright, lucrative future
for the legalized
cannabis industry.
We know that
thousands of people are
continuing to pour into
this industry, which
shows no signs of
slowing its growth.
If you are interested in
buying real estate to
lease out to a cannabis
operator, If you have a
client who is looking to
start in cannabis or you,
yourself are interested.
But no matter what
scenario you have in
mind, get in touch with
us.
We would love to talk,
shop and see what we
can do to help you bring
your plan for cannabis
property investment to
fruition. We are green
friendly, and want to
assist where other
lenders cannot.
OUR HARD MONEY
PROGRAM CAN LEND
TO INDIVIDUALS,
LLC’S, CORP’S, foreign
nationals and TRUSTS.
NO FICO Score
Requirements.
NO Tax Returns.
NO Debt to Income
Ratio Requirements.
NO Debt Service
Coverage Ratio
Requirements.
NO Financials.
NO Red Tape.
NO Bait and Switch.
Self Employed
Borrowers.
Stated Income Loans.
Recent Foreclosure or
Short Sale.
Business Purpose and
Commercial Use.
Gift Funds OK.
No Seasoning
Requirements.
first, second or third
position ok.
typically pre approve
loans within twenty
four hours and can fund
in as little as 7 days.

FIX FLIP

One Stop Funding is a
“fix and flip” lender.
Our flagship product is
the 80/100 ARV loan.
With this loan, we can
lend up to 80% of the
purchase price plus
100% of the rehab
budget as long as that
amount is less than or
equal to 65% of the ARV
(After Repaired Value).
We will also do a
“Straight 80” loan and
allow the borrower to
fund her own rehab, but
we will need proof that
she has sufficient funds
to do so.
The Process:
Client or Team
Leader submits the deal.
The deal is reviewed for
preapproval. If the deal
looks like it will work, a
preapproval email is
sent out with the rate,
terms, and documents
needed to get the file
into process!
Turnaround Time –
Application to Funding:
Two to three
weeks is the present
turnaround time from
application to funding.
The appraisal takes the
most time, but during
that time, if the
borrower or Team
Leader submits
everything requested
from One Stop
Funding’s processor,
the file will go into
underwriting within 24
hours of receipt of the
appraisal. Underwriting
is taking about 72 hours
presently, and the
Commitment Period is
taking about 24 hours
(this is the time for One
Stop Funding to send
out the Commitment
Letter and get it back
from the borrower), and
then Closing/Funding is
taking another 3-4
days. Because the
appraisal takes so long,
it’s critical One Stop
Funding receives, the
purchase agreement,
appraisal authorization,
and rehab budget
expeditiously.
Loan types:
One Stop Funding
makes loans back by
real estate exclusively.
Real Estate Types:
We lend on
non-owner occupied,
1-4 unit residential real
estate, and have an
apartment rehab
program as well.
After Repair Value
(ARV) vs As Is Value:
The ARV is
determined by the
appraiser who gives us
both the ARV and the As
Is values on the same
appraisal. The
appraiser cannot
determine the ARV
without a detailed,
itemized rehab budget,
so the appraisal will not
be ordered until it is
provided to One Stop
Funding. Also, One Stop
Funding will lend on the
LOWER of purchase
price or appraised value
on a purchase or
refinance for the first
year (with some
exceptions).
Borrowers:
One Stop Funding
lends to business
entities only, not to
individuals, but
underwrites ALL
owners of the business
entity.
Recourse:
One Stop Funding
makes full recourse real
estate loans to
businesses, meaning
the owners/sponsors
must personally
guarantee the loan. We
do make one exception
and that is when the
sponsor(s) money for
the downpayment and
other costs is coming
from an IRA.
Auctions:
There are two
types of actions, those
that require immediate
payment and those that
allow up to 30 days or
more. If it’s the former,
the investor has to pay
cash and then refinance
with One Stop Funding.
We will usually put the
same loan on it that we
would have if it was a
purchase.
Blanket Loans:
Yes, we offer
blanket loans. The two
most common are using
an owned property with
equity to use toward the
downpayment and
closing costs on a new
purchase, and getting
cashout on a rental
portfolio.
Loan Amounts:
Generally our
minimum loan amount
is $75,000 on an ARV
loan and $50,000 on
say a cashout refinance.
Our maximum loan
amount is $2,000,000
Minimum Property
Value/Purchase Price:
Generally
$65,000 and we may go
down to $50,000 on a
blanket loan
Exit Strategy:
The exit strategy
is how the borrower
intends to pay back the
loan such as sell,
refinance, or pay off
with cash.
Qualifying:
One Stop Funding
looks at the entire
scenario, such as, but
not just the credit,
income, debt ratios,
experience, cash, exit
strategy, location of the
property, property type,
etc. If you think the
deal makes sense; in
other words, you’d lend
them your own money,
then send it to us.
Assets:
The formula to
determine how much
cash is needed is the
following: 30% of the
purchase price plus
$10,000. This because
One Stop Funding
requires 20% down,
another 10% for closing
costs, reserves and
contingencies and at
least $10,000 for the
first phase of the
renovation.
Credit:
There is no
minimum credit score
unless the exit strategy
is to refinance. In that
case, we look much
more closely at the
credit to make sure the
strategy is feasible. The
target mid-FICO in that
case is 650.
Tax Liens/Judgements:
Tax leins are not
allowed, unless a
payment plan is in place
and at least 6 payments
have been made.
Judgements are
generally not allowed.
Bankruptcy:
One Stop Funding
will not do loans for
sponsors currently in
BK. There is no
minimum amount of
time since discharge,
but we would like to see
that the person’s
trouble are clearly
behind her.
Terms:
Generally One
Stop Funding charges
1% a month for 1 year
with an Origination Fee
of 2-6% and no
prepayment penalty.
There are exceptions to
all of those terms which
are determined on a
case-by-case basis.
There will be a
_______% service
fee of the loan amount
that needs to be paid
after you received the
pre approval letter.
Minimum
Documentation
Requirements:
2 years personal tax
returns (all
owners/sponsors)
2 months bank
statements
2 company docs; the
Articles and the
Operating Agreement
Reserves:
One Stop Funding
requires three (3)
months of the expected
mortgage payment left
in the bank AFTER
closing.
Experience:
Unlike many lenders,
One Stop Funding will
lend to inexperienced
flippers. However, if a
borrower can prove
three (3) flips in the last
three (3) years, it will
help with qualifying and
One Stop Funding may
be able to offer better
terms.
Refinances:
The maximum
LTV is 50% for cashout.
We may go a little
higher than that in
extenuating
circumstances.
Appraisals:
One Stop Funding
uses multiple
nationwide AMC’s and
but focuses on the one
that generally provides
the best combination of
quality, service, and
turnaround time. They
have thousands of
appraisers on their
board and can always
find a local appraiser to
do the valuation.
Currently appraisals are
taking 7-10 business
days. The fees are $495
for SFRs, $650 for 2-4
units, $5,000 for
Apartments $500k to
$5,000,000. For a three
(3) day rush, one can
pay a refundable $100
rush fee. If it’s not
complete in three days,
the $100 is refunded.
Upfront Fees:
The only upfront
fee would be for the
appraisal(s). That’s it.
Second
Mortgages/Seller
Carrybacks:
One Stop Funding
does not allow second
mortgages/liens above
80% LTV.
Monthly Interest
Payments:
One Stop Funding
does require monthly,
interest only payments
on the outstanding
balance paid via ACH or
autodraft.
Cash Partner/Joint
Ventures/Gifts:
We generally
allow gifts from
relatives and we MAY
allow a third party to
provide cash for the
downpayment, closing
costs, rehab, etc. on a
case-by-case basis, as
long as no second lien is
recorded.
Draws/Disbursements:
After the loan
closes we send a
welcome package to the
borrower explaining the
process. Simply put,
the sponsor submits a
one page document
called a draw request to
One Stop Funding along
with a copy of the rehab
budget marked with the
items that have been
completed. Within 48
hours usually, we’ll
have an inspector out
there to take pictures
and create a report.
Once it’s back and the
rehab has been verified,
we send a wire to the
client, minus a $200
fee, for the amount
requested. The
minimum draw amount
is $10,000.
One Stop Funding is a
“fix and flip” lender.
Our flagship product is
the 80/100 ARV loan.
With this loan, we can
lend up to 80% of the
purchase price plus
100% of the rehab
budget as long as that
amount is less than or
equal to 65% of the ARV
(After Repaired Value).
We will also do a
“Straight 80” loan and
allow the borrower to
fund her own rehab, but
we will need proof that
she has sufficient funds
to do so.
The Process:
Client or Team
Leader submits the deal.
The deal is reviewed for
preapproval. If the deal
looks like it will work, a
preapproval email is
sent out with the rate,
terms, and documents
needed to get the file
into process!
Turnaround Time –
Application to Funding:
Two to three
weeks is the present
turnaround time from
application to funding.
The appraisal takes the
most time, but during
that time, if the
borrower or Team
Leader submits
everything requested
from One Stop
Funding’s processor,
the file will go into
underwriting within 24
hours of receipt of the
appraisal. Underwriting
is taking about 72 hours
presently, and the
Commitment Period is
taking about 24 hours
(this is the time for One
Stop Funding to send
out the Commitment
Letter and get it back
from the borrower), and
then Closing/Funding is
taking another 3-4
days. Because the
appraisal takes so long,
it’s critical One Stop
Funding receives, the
purchase agreement,
appraisal authorization,
and rehab budget
expeditiously.
Lending Area:
Nationwide
except OR, UT, ND, SD,
MN, VT, ME
Loan types:
One Stop Funding
makes loans back by
real estate exclusively.
Real Estate Types:
We lend on
non-owner occupied,
1-4 unit residential real
estate, and have an
apartment rehab
program as well.
After Repair Value
(ARV) vs As Is Value:
The ARV is
determined by the
appraiser who gives us
both the ARV and the As
Is values on the same
appraisal. The
appraiser cannot
determine the ARV
without a detailed,
itemized rehab budget,
so the appraisal will not
be ordered until it is
provided to One Stop
Funding. Also, One Stop
Funding will lend on the
LOWER of purchase
price or appraised value
on a purchase or
refinance for the first
year (with some
exceptions).
Borrowers:
One Stop Funding
lends to business
entities only, not to
individuals, but
underwrites ALL
owners of the business
entity.
Recourse:
One Stop Funding
makes full recourse real
estate loans to
businesses, meaning
the owners/sponsors
must personally
guarantee the loan. We
do make one exception
and that is when the
sponsor(s) money for
the downpayment and
other costs is coming
from an IRA.
Auctions:
There are two
types of actions, those
that require immediate
payment and those that
allow up to 30 days or
more. If it’s the former,
the investor has to pay
cash and then refinance
with One Stop Funding.
We will usually put the
same loan on it that we
would have if it was a
purchase.
Blanket Loans:
Yes, we offer
blanket loans. The two
most common are using
an owned property with
equity to use toward the
downpayment and
closing costs on a new
purchase, and getting
cashout on a rental
portfolio.
Loan Amounts:
Generally our
minimum loan amount
is $75,000 on an ARV
loan and $50,000 on
say a cashout refinance.
Our maximum loan
amount is $2,000,000
Minimum Property
Value/Purchase Price:
Generally
$65,000 and we may go
down to $50,000 on a
blanket loan
Exit Strategy:
The exit strategy
is how the borrower
intends to pay back the
loan such as sell,
refinance, or pay off
with cash.
Qualifying:
One Stop Funding
looks at the entire
scenario, such as, but
not just the credit,
income, debt ratios,
experience, cash, exit
strategy, location of the
property, property type,
etc. If you think the
deal makes sense; in
other words, you’d lend
them your own money,
then send it to us.
Assets:
The formula to
determine how much
cash is needed is the
following: 30% of the
purchase price plus
$10,000. This because
One Stop Funding
requires 20% down,
another 10% for closing
costs, reserves and
contingencies and at
least $10,000 for the
first phase of the
renovation.
Credit:
There is no
minimum credit score
unless the exit strategy
is to refinance. In that
case, we look much
more closely at the
credit to make sure the
strategy is feasible. The
target mid-FICO in that
case is 650.
Tax Liens/Judgements:
Tax leins are not
allowed, unless a
payment plan is in place
and at least 6 payments
have been made.
Judgements are
generally not allowed.
Bankruptcy:
One Stop Funding
will not do loans for
sponsors currently in
BK. There is no
minimum amount of
time since discharge,
but we would like to see
that the person’s
trouble are clearly
behind her.
Terms:
Generally One
Stop Funding charges
1% a month for 1 year
with an Origination Fee
of 2-6% and no
prepayment penalty.
There are exceptions to
all of those terms which
are determined on a
case-by-case basis.
There will be a
_______% service
fee of the loan amount
that needs to be paid
after you received the
pre approval letter.
Minimum
Documentation
Requirements:
2 years personal tax
returns (all
owners/sponsors)
2 months bank
statements
2 company docs; the
Articles and the
Operating Agreement
Reserves:
One Stop Funding
requires three (3)
months of the expected
mortgage payment left
in the bank AFTER
closing.
Experience:
Unlike many lenders,
One Stop Funding will
lend to inexperienced
flippers. However, if a
borrower can prove
three (3) flips in the last
three (3) years, it will
help with qualifying and
One Stop Funding may
be able to offer better
terms.
Refinances:
The maximum
LTV is 50% for cashout.
We may go a little
higher than that in
extenuating
circumstances.
Appraisals:
One Stop Funding
uses multiple
nationwide AMC’s and
but focuses on the one
that generally provides
the best combination of
quality, service, and
turnaround time. They
have thousands of
appraisers on their
board and can always
find a local appraiser to
do the valuation.
Currently appraisals are
taking 7-10 business
days. The fees are $495
for SFRs, $650 for 2-4
units, $5,000 for
Apartments $500k to
$5,000,000. For a three
(3) day rush, one can
pay a refundable $100
rush fee. If it’s not
complete in three days,
the $100 is refunded.
Upfront Fees:
The only upfront
fee would be for the
appraisal(s). That’s it.
Second
Mortgages/Seller
Carrybacks:
One Stop Funding
does not allow second
mortgages/liens above
80% LTV.
Monthly Interest
Payments:
One Stop Funding
does require monthly,
interest only payments
on the outstanding
balance paid via ACH or
autodraft.
Cash Partner/Joint
Ventures/Gifts:
We generally
allow gifts from
relatives and we MAY
allow a third party to
provide cash for the
downpayment, closing
costs, rehab, etc. on a
case-by-case basis, as
long as no second lien is
recorded.
Draws/Disbursements:
After the loan
closes we send a
welcome package to the
borrower explaining the
process. Simply put,
the sponsor submits a
one page document
called a draw request to
One Stop Funding along
with a copy of the rehab
budget marked with the
items that have been
completed. Within 48
hours usually, we’ll
have an inspector out
there to take pictures
and create a report.
Once it’s back and the
rehab has been verified,
we send a wire to the
client, minus a $200
fee, for the amount
requested. The
minimum draw amount
is $10,000.