DHM Lending Criteria Alli Parkinson
Included are all the details of our Find-Fund-Flip System.
Requirements to enroll:
You are looking to utilize our primary loan program to invest in at least one of our direct lending states: Alabama, Delaware, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Missouri, New Jersey, New Mexico, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia.
You do not have any active bankruptcies, active foreclosures, chargeoffs, or outstanding collections, or felonies on your record. You CAN still enroll, regardless of credit or criminal history, if you are either interested in wholesaling through DoHardMoney OR you can bring on a business partner who is credit-worthy/has a clean criminal background.
Primary Loan Option Minimums/Maximums:
Minimum Credit Score: None (if you have a credit score of 680 or higher you will qualify for our preferred rates)
Minimum Loan Amount: None
Minimum After Repair Value (ARV) of property: $60,000
Maximum outstanding loans: 3
Maximum property evaluations at one time: 1
Maximum loan amount of $350K per property.
Maximum rehab budget of $200K
Maximum Loan amount of 70% of the ARV (can cover purchase price, rehab costs, and closing costs!)
Note for Non-US Citizens:
For non-US Citizens that have Permanent Residence or a Social Security Number, our primary loan programs will have a 5% reduction on the Loan to Value (therefore, the max loan will be 65% of the ARV).
For Non-US Citizens without Permanent Residence or a Social Security Number our primary loan programs will have 10% reduction on the Loan to Value so our max will be 60% of the After Repair Value.
Non-US Citizens can still receive 100% financing as long as the purchase price, rehab costs, closing costs, points, and interest for the initial term fall under the percent of the ARV listed above.
How to Receive 100% Financing (flipping properties with $0 cash-to-close)
Get a loan for a deal in which the purchase price, rehab costs, closing costs, points, and interest for the initial term do NOT exceed a MAXIMUM of 70% of the ARV
Use a business line of credit to cover any required cash-to-close on a loan to retail flip a property where costs exceed 70% ARV
Find a property to wholesale (we help you find a qualified retail buyer)
Primary Lending Rates and Numbers:
Points: the preferred rate is 5.5 points and standard rate is 6.5 points.
Interest: the preferred rate is 1.25% per month and standard rate is 1.5% per month
Minimum time to close: 15 business days after an evaluation is ordered.
Standard initial term: 5 months of Deferred Interests (Upon approval we do allow up to 3 additional 1 month forbearance payments that are 1% of the loan amount plus interest)
Primary Lending Guidelines:
Subject property must be a non-owner occupied, traditional site built or modular construction, single family residential property. (Our primary loan programs do not lend on manufactured or mobile homes, raw land, or commercial properties)
Subject property's footprint must remain the same (no exterior walls can be added to the property)
If other risk factors apply to the property or neighborhood (such as flood zones, vandalism, high rentals, high crime, high market time, or close proximity to railroad tracks oil tanks, septic systems, major streets, or boarded up homes) then the loan amount offered may be reduced
If the subject property is in a major disaster area you may not be able to receive funding through our primary loan program
Note: All details including current points and interest rates, term lengths, minimum credit scores, minimum experience levels, minimum cash-to-close, minimum cash reserves, monthly interest payments, minimum profit levels, maximum risk levels, maximum total acquisition costs, maximum rehab costs, maximum rehab to acquisition ratio, and minimum debt-service coverage ratio can be found online in the Advanced Deal Analysis or loan application available to all members.
Membership Costs and Fees:
Initial $3,595 enrollment fee: non-refundable after the initial 3-day period
Earnest Money: The member is solely responsible for providing for and protecting your own earnest money
Evaluation Fees: The first desktop evaluations are included in the initial enrollment fee. After that, the member will be charged $250 for every desktop evaluation. The member will be charged $400 for every on-the-ground evaluation order placed
Inspections: If the evaluations come back indicating that further inspections are necessary, the member will have the option to either pay for the inspections or pull out of the deal
Reinvestment Bonus: $2,350 will be reimbursed back to the member after they successfully paid off the first loan/closed your first wholesale deal AND provide us with a HUD statement.
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