Bridge Purchase
Bill is looking to purchase a property for $800,000. He qualifies for 75% LTV and an interest rate of 9.75%. His down payment is __________
$200,000
DSCR stands for
Debt Service Coverage Ratio
Cash-out is defined as an Investor receiving more than
$5,000 at closing
Experience is measured by the number of properties owned, sold, or successfully maintained within the last _____
36 months
The maximum acreage permissible is
5 Acres
The maximum amount of properties allowed for cross-collateralization is
5 Properties
The minimum DSCR requirement on the 2-year term is _______
90%
Borrower owes 500k on the subject property and will get a loan of 650k the closing costs total 35,000. What is the cash out amount?
$115,000
Borrower must have a minimum of _______ ownership in project to qualify as experience
25%
Mr. and Mrs. O’Reilly are applying jointly for a loan. Mrs. O’Reilly’s credit scores are 658, 679, and 641. Mr. O’Reilly’s scores are 715, 724, and 697. CIVIC will use ____ as the qualifying score
715
Construction expenses must be itemized on a rehab budget when rehab is above ______
$10,000
When vesting in the borrower's individual name, pricing will typically adjust by ______%
.25%
Investors with qualifying FICO score less than 580 will be limited to $______ cash out
$250,000
Subordinate financing is permitted as long as it doesn’t exceed ______ CLTV
90%
What are CIVIC's Core Values?
Act with Honor, Be a Great Partner, Communicate Clearly, Create Smiles, Simplify
CIVIC requires windstorm insurance in the following states
FL, GA, HI, MD, NC, NJ, PA, SC, TX, VA
our borrower is looking for a 2 year loan with CIVIC. The subject property rents for $2,850. Annual taxes are $3,720 and yearly insurance is $2,460.
He has Tier 2 experience, a 555 FICO, and holds title in his own name. The loan amount is $420,000 (nice).
If he does not meet the 2 year DSCR requirement of 90%, how much extra cash does he need to show in his bank account (in addition to reserves) to qualify for the 2 year?
$10,677.60
True or False, Cash out proceeds can be used to reimburse business school student loans?
False
When an Investor is financing the rehab with CIVIC, we must verify that the Investor has liquid assets at the time of funding of at least _____ of the scope of work/budget to start the project.
25%
Bill is looking to purchase a property for $800,000. He qualifies for 80% LTV and an interest rate of 8.75%. His down payment is __________ and his IO payment is ___________.
Two borrower's have an opportunity to buy their first tenant occupied rental and want the 2 year bridge loan. One borrower's credit scores are 627, 629, and 615. The other Borrower's scores came in at 731, 644, and 695. They formed a JV partnership and opened an entity to close in the name of. They have enough funds to put 25% down, and the home should appraise for the asking price of $865,000. What is their LTV and qualifying interest rate
75% & 8.75%
Rebecca is looking to purchase a property in Redondo Beach, CA for $824,000 and plans on putting 20% down. Her plan is to rent it out for $3,550 per month. She recently received an interest rate quote from CIVIC of 8.99% and she’s considered a Tier 2 Investor. Assuming property taxes are $10,300/year and insurance is $2,300/year, please calculate her DSCR for the 2 Year Bridge Loan.
58.8%
James has done 6 flips in the last year. He has a 696 qualifying FICO and an entity to close in. His most recent project is finished and he is going to hold this one to put a tenant in there since the rental market is booming. His payoff is $467,300, and closing costs total $19,244. The home appraised for $712,000.
If he pulls cash out for his next project, how much should he net?
$225,456
Our borrower has a 501 FICO. They have done 4 deals with CIVIC though, and hold title in their personal name.
If this borrower goes on the 2 year bridge loan for a new purchase, with a loan amount of $265,000, exiting in month 5.... what is the total payoff to CIVIC?
$268,864.58
An unconditional personal guaranty is required when the loan amount is greater than or equal to __________.
$1.5 Million outside of CA or $2 Million in CA