Fix & Flip Product Matrix

Transcription

1 Product Matrix REVISED Picture TBD Fidelity Residential Product Matrix and Required Documents Checklist is for informational purposes only and is subject to change. Fidelity Residential reserves the right amend its underwriting guidelines in its sole discretion without notice. Loans are subject to investor and business credit approval, appraisal and geographic location of the property and other underwriting criteria. Loan amounts and rates may vary depending upon loan type, LTV, verification of application information and other risk based factors. Application fees, closing costs and other fees The Matrix is not for reproduction or distribution without our prior written consent.

2 Non- Loan Purpose Allows large volume purchasers to acquire and/or renovate multiple properties Allows purchasers to acquire, renovate, and sell a single property Minimum Experience 1 flip, build, or active rental within the last 2 years 3 flips, builds, or active rentals within the last 2 years None Borrower Individual, LLP, LP, Corporation, or LLC (Single Purpose Entity) Property or Unit Acquisition Minimum 1 property per loan Minimum Property Value $50K Property Type Single-family detached residences (SFR) 2-4 unit residences Condominiums (including non-warrantable) Townhomes Planned Urban Developments (PUD) Multi-family, 5-20 units Single-family detached residences (SFR) 2-4 unit residences Condominiums (including non-warrantable) Townhomes Planned Urban Developments (PUD) Single-family detached residences (SFR) 2-4 unit residences Condominiums (including non-warrantable) Townhomes Planned Urban Developments (PUD) Term 9 Months, with optional 3-month extension Max term: 15 months Amortization Interest-only payments with fixed-rate Minimum Loan Amount $50K Fidelity Residential Product Matrix and Required Documents Checklist is for informational purposes only and is subject to change. Fidelity Residential reserves the right amend its 2

3 Non- Maximum Rehab Budget Maximum Individual Loan Amount Line Amount None $3MM $1MM $250K - 10MM $2MM - 100MM N/A Recourse/ Non-Recourse Full recourse to warm body guarantor only Non-Recourse with customary bad boy carve outs Full recourse to warm body guarantor only Maximum Allowable Combined Fidelity Residential Outstanding Loans to an individual guarantor Recourse: $10MM N/A Recourse: $10MM Minimum Occupancy Vacant or Leased Insurance Requirements More complex coverage required than standard owner occupied policy. Minimum nine month premium paid at closing or proof of coverage reflected on a Special Form Policy / Monthly Reporting Form Policy. Loan-to-Value (LTV)¹ Max LTV: 75% After Repair Value Fidelity Residential Product Matrix and Required Documents Checklist is for informational purposes only and is subject to change. Fidelity Residential reserves the right amend its 3

4 Non- Acquisition Financing Loan-to-Cost (LTC)¹ Cost is purchase price. LTC is amount provided for acquisition or refinance. Max LTC: 90% Experience of 7+ Flips, Builds, Max LTC: 85% Experience of 3-6 Flips, Builds, Max LTC: 75% Experience of 1 Year in the Real Estate industry Max LTC: 85% No Experience Max LTC: 80% Rehab Financing Up to 95% of rehab budget, max of 75% After Repair Value Up to 85% of rehab budget, max of 75% After Repair Value Up to 85% of rehab budget, max of 70% After Repair Value When do we use LTV vs. LTC? Use lesser of LTV or LTC calculation Minimum Interest Charge 90 days of interest Rehab Reimbursement Draws Multiple Draws Valuation Desktop Valution for Single Family Residences and Townhoms with a loan amount of 250K Full Appraisal Full Appraisal for Single Family Residences and Townhomes with a loan of > 250K and all 2-4 Units and Condos... Full Appraisal Interest Calculation Accrues on both purchase funds and rehab funds in escrow Only accrues on disbursed funds Accrues on both purchase funds and rehab funds in escrow Fidelity Residential Product Matrix and Required Documents Checklist is for informational purposes only and is subject to change. Fidelity Residential reserves the right amend its 4

5 Sponsor/Guarantor Requirements Credit Score Credit Check Background Check Experience of 3 Flips, Builds,...FICO : Max LTV % After Repair Value 70% After Repair Value Experience of 1 Flips, Builds,... FICO : Max LTV % After Repair Value 65% After Repair Value Non- All Experience Levels...FICO : Max LTV % Experience of 1 Year in the Real Estate industry....fico : Max LTV... 70% After Repair Value 65% After Repair Value No Experience...FICO : Max LTV % After Repair Value 60% After Repair Value Required for any individual acting as guarantor and any party (invidual or entity) with direct or indirect ownership interest 20%. Required on (a) any party with control of the borrower (ie., a manager), (b) any guarantor, and (c) any party (individual/entity) with a direct or indirect ownership interest 20%. Fidelity Residential Product Matrix and Required Documents Checklist is for informational purposes only and is subject to change. Fidelity Residential reserves the right amend its 5

6 Sponsor/Guarantor Requirements Minimum Net Worth Minimum Liquidity Non- 30% of credit line 40% of credit line N/A All Experience Levels 20% of credit line All Experience Levels 10% of credit line Experience of 1 Year in the Real Estate industry 20% of purchase price and 25% of rehab expense or 75% of rehab expense (if no rehab holdback) No Experience 35% of purchase price and 35% of rehab expense or 100% of rehab expense (if no rehab holdback) The Fidelity Residential LLC Fidelity Residential Product Matrix and Required Documents Checklist is for informational purposes only and is subject to change. Fidelity Residential reserves the right amend its underwriting guidelines in its sole discretion without notice. Loans are subject to investor and business credit approval, appraisal and geographic location of the property and other underwriting criteria. Loan amounts and rates may vary depending upon loan type, LTV, verification of application information and other risk based factors. Application fees, closing costs and other fees The Matrix is not for reproduction or distribution without our prior written consent. 6

7 Questions? We're here for you. 1 LTV and LTC are determined by a combination of factors, including experience, liquidity, net worth, FICO score. 2 The $500 Line of Credit Application Fee will be credited towards Processing Fees if the first property transaction is completed within 90 days. 3 Background checks are required on (a) any party with control of the borrower (ie., a manager), and (b) any guarantor, and (c) any party (individual/entity) with a direct or indirect ownership interest 20%. 4 If actual cost of appraisal differs, charge or credit will be corrected at close. 5 If we are financing the rehab, lender inspection will always be required. All single property loans will require a lender inspection with or without rehab financing. 6 Funds from retirement accounts are subject to a 30% haircut (also called a deduction). 7 Subject to any applicable penalty, as defined by current policy statement. 8 Any fees related to obtaining a questionnaire are the responsibility of the borrower. This Document Checklist is for informational purposes only and is subject to change. Fidelity Residential reserves the right to amend its processes in its sole discretion and without notice. REVISED Fidelity Residential LLC Robert Shamie NMLS ID # Fidelity Residential LLC only originates loans for business purposes Fidelity Residential LLC is exempt from licensing in the states which we operate. 7