A Comprehensive Guide to the “One-Stop” Mortgage Loan Program for Investment Purposes
When it comes to real estate investment, having access to a flexible and all-encompassing loan program can make all the difference. The “one-stop” mortgage loan program is designed to provide investors with a convenient and efficient solution for financing their projects.
Purpose
The “one-stop” mortgage loan program is specifically tailored for investment purposes only. It offers a comprehensive financing solution that covers various aspects of the project, including land acquisition, closing costs, soft costs, interest reserve, and construction financing. This means that investors can obtain a single loan to cover all these expenses, simplifying the financing process and saving time.
Property Types
The program allows for a wide range of property types, including single-family homes, 2-4 unit properties, townhomes, and multi-family buildings. Additionally, spec development is also allowed, providing investors with the flexibility to pursue different types of real estate projects.
Interest Rate
Competitive fixed rates are offered through this program. For an immediate quote, contact our office.
Loan Size
The “one-stop” mortgage loan program caters to projects with loan sizes ranging from $500,000 to $5 million. This ensures that investors can access the necessary funds, regardless of the scale of their project.
Prepayment Penalty
One of the advantages of this program is that there is no prepayment penalty. Investors have the freedom to prepay their loan at any time without incurring additional fees or charges.
Term
The loan term for this program ranges from 12 to 24 months, with extensions available if needed. This flexibility allows investors to align the loan duration with their specific project timeline.
Loan-to-Value (LTV) and Loan-to-Cost (LTC) Ratios
The program offers competitive LTV and LTC ratios. Investors can secure financing of up to 65% of the completed value of the property and up to 75% of the project cost. These ratios provide investors with a significant portion of the required funds, reducing the need for additional capital.
Interest Reserves
Interest reserves are available and can be built into the loan. This feature allows investors to include the interest payments in the loan amount, ensuring that they have sufficient funds to cover the monthly interest during the project’s construction phase.
Land Acquisition
Investors can secure financing for up to 50% of the acquisition costs through this program. This provides the necessary capital to acquire the land needed for the project, further streamlining the financing process.
Custom Construction Draws
The program offers an average funding time of 7-10 days for custom construction draws. Additionally, in-house inspections are conducted to ensure that the construction progress aligns with the loan disbursement schedule. This efficient process allows investors to access the necessary funds promptly and keep their projects on track.
Construction Loan
With this program, investors can obtain financing of up to 100% of the construction costs. This eliminates the need for additional capital and provides investors with the necessary funds to complete their projects.
Amortization
During the construction phase, the loan requires interest-only monthly payments on the monies advanced. This allows investors to manage their cash flow effectively and focus on the project’s construction without the burden of principal payments.
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