Loan Terms

Below are some of the details of our loan terms.  These are for general planning purposes, but each loan can have different terms based on the borrower strength, the deal, and the location.

  • Up to 65% Loan-to-Value (LTV) of After-Repair-Value (ARV)
  • 12% interest only on the term of the loan
  • 2-points origination fee (2% of the loan)
  • Term is 6-12 months in length
  • 6 month minimum term; construction must be complete within 6 months
  • Monthly interest payments deferred for first 6 months and then monthly payments due
  • One 3-month extension can be applied for near 12 month deadline
  • Extension terms are 1-point and new interest rate of 14%
  • Borrower needs minimum 10% cash of project cost, or 15% if in subject-lot equity,
    or 20% vacant lot cross-collateral; other real estate equity cross-collateral may be considered
  • Our Loan closings are handled by NC attorney Larry Maitin at Maitin Law Firm in Raleigh, NC.
  • Fees: $500 application; $250/draw; loan closing costs; title insurance
  • Due Diligence costs: Soil test, septic and/or well inspection, foundation certification letter (these vary by deal)

NC County Locations for Our Lending

In general, we will lend in growing counties surrounding the Triangle and the Triad areas of NC.  Here are some more details for what we want to see:

  • Growing county over 50,000 in population
  • Population density of 100 or more people per square mile
  • Active Manufactured Home sales in the county with clear comparables
  • Average SFR sales price higher than Manufactured Home sales price
  • Active FHA, VA, and USDA lending in the area

Here are some of the counties we will lend in, but we will consider others based on the strength of the deal:

Alamance County, Chatham County, Edgecombe County, Franklin County, Granville County, Harnett County, Johnston County, Lee County, Moore County, Nash County, Person County, Randolph County, Wayne County, Wilson County, Cumberland County, Hoke County, Pitt County, Wake County, Orange County, Davidson County, Durham County, Guilford County, Forsyth County.