REO Lending Sample Terms

LOAN AMOUNT: $1,500,000 and up

LOAN TYPE: Secured Revolving Line of Credit

MAXIMUM ADVANCE (LTC) Of total cost to ready property for market

  • Program A 50.00%
  • Program B 65.00%
  • Program C 80.00%

INTEREST RATE: per year on rnoney out

  • Program A 12.00%
  • Program B 12.00%
  • Program C 13.50%

LOAN FEE:
Per year on committed line amount - fees are charged in lieu of equity

  • Program A 4.00% per year on the committed line amount
  • Program B 4.00% per year on the committed line amount
  • Program C 5.00% per year on the committed line arnount

All Programs: 1.00% per annum charged quarterly in arrears on the average unused (waived if average outstanding balance for quarter is above 65%).

MONTHLY PAYMENTS:
Interest-only on the actual amount outstanding

TERM:
12 months. 6 Month extension options are available

PREPAYMENT:
No prepayrnent penalty

MAXIMUM ADVANCE:
Up to 80% of the total cost required to ready a property for market (acquisition cost, cash for keys, & rehab budget)

GUARANTEES:
Limited to Full Recourse

COLLATERAL:
1st Priority Lien on each property financed

RELEASE PRICE:
Repay at par if inventory turnover meets covenants

OTHER FEES & COSTS:
$5,000.00 - $7500.00 refundable one time document preparation fee. A $350.00 transaction fee to cover the costs of inspection and appraisal for each property. All third party fees such as title and escrow, ALTA fees, recording, reconveyance and title policy costs.

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