Brand New California Rehab Loan | Valor Lending Group

Are you interested in doing acquiring a brand new California rehab loan?

Brand New California Rehab Loan Programs have been skyrocketing in popularity!

We have helped thousands of Californians and real estate investors nationwide. There is no question too big or too small that we won’t be able to help you with. We pride ourselves on our top-notch communication skills to tackle any situation that comes our way. Reach out to us today, and one of our loan officers will get back to you ASAP with advice you can trust.

Construction loan options HERE

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What is a Rehab Loan? 

Valor Fix and Flip loans are hard money loans used to purchase and rehab a property, and then resell it at a higher value. The Fix and Flip lending market has been quite frothy the past few months.  If you are an experienced flipper, you may notice that your old lender of choice has increased rates, decreased LTVs, and in some cases quit funding altogether. For first timers, the market has become substantially hard to break into.

No need to worry however! We have seen a resurgence in fix and flip lending in the past week and are pleased to announce we are funding in 42 states again, and multiple lenders are doing up to 85/100 (85% of purchase and 100% of rehab) with rates in the high 7’s.

These loans do not require tax returns, income/employment, or debt-to-income ratio calculations.

Why Use Hard Money?

Every well-equipped borrower’s toolbox should have a reputable hard money funding source. Although banks are usually able to offer lower rates, banks do not offer hard money loans, their loan programs don’t allow for the same flexibility hard money lenders can afford. In addition, traditional lenders have loan committees and a more involved underwriting process, and it is not unusual for both of these to delay the loan process. Hard money loans bridge borrowers from one type of financing to another. Because of this,

There are 2 main reasons to use hard money loans:

1) Speed

2) Temporary Financing Solutions. 

1) Speed: Same-as-Cash Purchasing Power One of the main reasons to use hard money loans is their speed. Hard money loans can be closed much quicker than traditional loans, offer in 1-2 weeks, sometimes quicker. Some of the best hard money lenders are able to make their underwriting decisions and issue a term sheet on the first phone call, and some are even able to fund loans in 24 hours! For those needing a quick close with minimal documentation, hard money loans are a great fit. 

2) Temporary Financing Needs Hard money loans are simpler and quicker than traditional loans, and there are two main categories of temporary financing situations in which hard money loans make sense: (1) Property needs to be stabilized; and/or (2) Borrower’s financials need to be stabilized.

(a) Value-Add / Property Stabilization / Fix-n-Flips / Construction

Hard money loans are particularly well-suited for situations in the financed property needs to undergo some kind of renovation. This can range from cosmetic upgrades to full gut rehabs and rebuilds. The issue for borrowers in these situations is that traditional lenders base their funding decisions on the current value of a property.

Hard money lenders, on the other hand, are willing to base their funding decisions (at least in part) on the future value after renovated value (“ARV”) of the property. Hard money lenders are willing to lend on the riskier, future expected revenue of a property, because they mitigate their risk with a lower LTV and charge higher rates.

Fix and flips are a classic situation in which a hard money loan makes financial sense. In these situations, the loan is based on the after-renovated value. Once the property is finished being rehabbed, and realizes its full income-producing capacity (“stabilized”), the hard money loan can be paid off in 1 of 2 ways: sell the property, or refinance with a traditional lender now that the as-is value supports the loan.

(b) Borrower Financials Currently Less Than Perfect

Hard money lenders are far less concerned with credit issues such as foreclosures, bankruptcies, late mortgage payments, etc., and have less stringent underwriting guidelines.

There are times when a borrower is simply unable to provide documental traditional lenders require, whether due to the nature of their business, or the fact that tax returns may not be an accurate reflection of the current financial situation.

Hard money lenders are willing to look past such credit issues where there is enough equity in the property, or a borrower has enough access to capital to make payments on the debt.

Hard money lenders typically do not want tax returns or employment/income info. If there is significant equity remaining in the property after the hard money loan is accounted for, some hard money lenders will refinance a property with nothing more than a Driver’s License, Preliminary Title Report, and a visual inspection of the property (a “drive-by appraisal”).

Fix and Flips, Commercial Value Adds, and Construction Loans

Fix and flips, value adds, and other distressed properties, as well as construction loans, can be difficult to finance using traditional lenders such as banks because these types of properties are inherently risky. This is a prime example of where hard money loans can be used.

Construction projects are by nature short-term, and usually, these types of hard money loans are for terms of 18-36 months. Hard money construction loans are used to cover the cost of labor and materials for the development project, and sometimes also the land acquisition.

Valor Fix and Flip Loan Highlights:

• Up to 85/100 (Purchase/Rehab)
• 12 to 24 month terms
• Loan amounts up to $10MM
• No Prepayment Penalty
• Interest starting in the high 7’s

Needs for Quote:

1. Property Address:
2. Purchase Price (for Purchase):
3. “As is” Value:
4. After Repair Value
5. Current Balance (for Refinance):
6. Rehab Budget & Detailed Cost Breakdown
7. Project Experience as a Sponsor
8. Approx. Credit Score:
9. Vesting in and Entity or Individual name:

Ground Up Construction Highlights:

• Up to 90% LTC
• Max Loan Up to $20 Million
• Flexible Guidelines
• 12 to 24 month Interest Only Interest Rates

Other Programs Available:

• Commercial Loans
• Hard Money Loans
• Save your Deal | We Save Deals

VALOR LENDING GROUP HAS THE BRAND NEW CALIFORNIA REHAB LOAN PROGRAMS YOU HAVE BEEN SEARCHING FOR!

Call or email me today to discuss your rehab loan options!

Recap of our Loan Products:

1. Hard Money Loans (20% down / minimal documentation) Typically Fund in 7-10 days.
2. Stated Income Loans (Great for business owners and self employed ) No tax returns!
3. 100% financing is available (we can cross collateralize other properties if there is enough equity)
4. Valor VA Home Loan 100% financing up to $1.5MM
5. Rental Property Loan – No tax returns or DTI calculation! Based on subject property cash flow – No DSCR Coverage needed!
6. Flipper & Rehab Loans (Flip a property with one of our many options)
7. 2nd Position Loans up to $5mm
8. Raw Land & Lot Loans
9. Ground up Construction for spec homes, custom homes and commercial ground up.
10. Farms, Vineyards, Ranches and Agricultural Properties (25-30% down)
11. 10% down up to $1.5mm
12. Manufactured Housing / Mobile Homes (20% down / 600+ credit score)
13. Acreage Properties
14. Commercial Loans up to $500mm
15. 3% & 5% down Conventional Loans– LPMI (Lender paid mortgage insurance)
16. Foreign Nationals Loans (no social security or residency required)

We also offer:

1. Conventional Conforming Loans
2. High Balance Conforming
3. FHA, USDA
4. Reverse mortgages up to $1 Million Value
5. Cash Out Refinancing

**Rates and terms subject to change without notice

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