Loans close faster when the paperwork is ready before it is asked for. Below is what we need for each type of loan. A business-purpose loan can close in your own name or in the name of an entity. Many investors use an LLC for liability protection, and if you do, the entity documents apply.
Rental (DSCR) loans
Once
- Driver’s license
- LLC certificate of formation, EIN letter and signed company agreement
- Certificate of account status or good standing, if the LLC is more than a year old
- Voided check for automatic payments
- Two months of bank statements. We look for roughly six months of liquidity
Each deal
- Loan application
- Signed purchase contract, or the original settlement statement for a refinance
- The lease, for a rented property
- HOA dues and any special assessments
- Insurance agent and title company contacts, plus a flood insurance quote if the property is in a flood zone
- Someone who can let the appraiser into the property
- The appraisal report
New construction loans
Once
- Driver’s license
- LLC certificate of formation, EIN letter and signed company agreement
- Certificate of account status or good standing, if the LLC is more than a year old
- A schedule of your projects from the last 2 years with settlement statements
- Voided check for automatic payments
- Personal financial statement
- Two months of bank statements showing reserves for interest, closing costs and part of the budget
Each deal
- Loan application
- A line-item construction budget with a specific scope of work
- Plans, drawings, any soil report and permit status
- The general contractor’s details and insurance
- A list of the contractor’s recent new builds
- Insurance agent and title company contacts, plus a flood insurance quote if the property is in a flood zone
- Someone who can give the appraiser access to the site
Fix and flip loans
Once
- Driver’s license
- LLC certificate of formation
- IRS EIN letter
- Company agreement signed by every member, with ownership percentages
- Certificate of account status or good standing, if the LLC is more than a year old
- Voided check for automatic payments
- Experienced investors: a schedule of your projects from the last 3 years and the settlement statements for each purchase and sale. For a property you kept, the statement showing the refinance into permanent financing
Each deal
- Loan application
- A line-item rehab budget with a specific scope of work. Write “install 12 pressed piers and replace roof”, not “foundation and roof”. Draws are released against this budget
- Signed purchase contract, or the original settlement statement for a refinance
- Foundation inspection or engineer’s report, if you have one
- Insurance agent’s name, phone and email
- Title company’s name, phone and email
Not sure about an item? Call (954) 598-4564.