Helpico Insurance Agency

Program Examples from Financing Portfolio

Rousseff Financing is associated with a National Broker and provides financing nationwide representing over 110+ specialty lenders offering literally thousands of commercial real estate loan programs and loan variations with billions of dollars to immediately deploy. We specialize in non-bank type loans $100k or greater. Our broker is a full-service brokerage coordinating and packaging loan files, placement as well as title insurance, property insurance, realtor, lawyers and more. They act as your “quarterback” and will do everything in their power to get loans closed as quickly and smoothly as possible for our clients. The product sheet is meant to be a guide or a tool only. Pre-approvals issued in 24-48 hours or less.

Example 1: Up to 100% Rehab Financing!

Example 1: Fico: 600+ for 25% down of ‘as is value’ and max 70% LTV of ARV. 650+ for 100% financing rehab program. Borrower cannot have a recent BK or a foreclosure.
Loan Terms: 1 day to 12 months, longer terms available on a case-by-case basis.
Loan Size: $100,000-$750,000 for the 100% program, and up to $2 million for the 25% down program. Over $2 million is a possibility on a case-by-case basis.
Max LTV/ARV: Lender will generally finance 75% of the purchase price, loan capped at 70% of the ARV. Lender also offers a 100% financing program, which is capped at 70% ARV as well. Broker fee, lender fee, title insurance and property insurance can be wrapped into the 100% program as long as the total loan amount does not exceed 70% of the ARV of the property!
Interest Rate: 9-14% depending on borrower’s experience, fico, number of deals they do and the leverage the borrower is requesting. Lender offers 4 different programs. The 100% financing product ranges from 12-14% with 3 lender points. The 75% LTV rehab program starts at 10% and comes with 2 lender points.
Property Types: 1-4 unit investment properties! This includes Single Family Homes, 2-units, 3-units, 4-units, condos and town homes, though HOAs are not preferred.
Pre-Payment Penalty: None!
Use of Funds: Purchase & Rehab, Refinance and Rehab, Ground up construction on a case-by-case basis.
Points: 2-3 Lender Points, depending on program. Lender also has a $995 document fee. All fees are paid at closing. Only the appraisal is paid for upfront.
Lending Territory: Oklahoma, Kansas, Colorado, Ohio, Washington DC, Maryland, Virginia, Indiana, Minnesota, Missouri, Florida, Georgia, Illinois, & North Carolina.
Closing Time Frame: 2-3 weeks for initial borrowers, much faster for repeat borrowers, only limited by how quickly the ‘subject to’ appraisal can be done.
Experience Requirement: Borrower must have bought, rehabbed and exited at least two deals in the past 24 months (verified by HUDs and Scopes being submitted). Borrower must have recent ground up construction experience in past 24 months to receive a ground up construction loan.

Asset Verification: Last 2 months of bank statements and last year of tax return.

Liquidity Requirement: Borrower must show solid reserves on hand for the 100% financing product, there is no exact reserve requirement for the 3 other programs they offer.

Construction draws: Released to borrower upon successful work completion, requires on-site inspection, $150 avg. draw fee.

Special: Borrower must close in a business entity. Lender does background checks on all borrowers. Lender is currently not working with foreign nationals, but would discuss on a case-by-case basis. For the 100% Rehab program, the lender does an up-front draw at close! Again, borrower must have liquidity to qualify for that program! The 100% Rehab program may require that the borrower reserves 6 months of interest only payments, depending on financial strength.

Extra: Lender must be 1^st position and will not allow a 2^nd position lender behind them! All borrowers must personally guarantee the loan. If there are two members in an LLC, one may be underwritten as the primary borrower, but both members will still need to sign the personal guarantee

Example 2: Nationwide Small Balance Bridge/Rehab Program

Loan Amount: $50K – 2.5 million
-LTC (loan to cost): Will fund up to 80-85% of the purchase price & 100% of the renovations. As long as the loan amount does not exceed 75% of the ARV (after repair value) of the property.

-On a refinance rehab deal, this lender will offer the same terms as a purchase transaction, as long as the property was bought in 90 days or less.

-LTV: On bridge loans the lender typically will finance 65% of the purchase price. Borrower must come with the remaining down money plus be liquid for other 3^rd party closing costs.
-Interest Rate: 9.99-10.99%

-Fico: 630+
-Points: 2 lender points.

-Term: Typically 12 Months

-Lending Territory: Nationwide besides MN, OR, SD & UT.

-No pre-payment penalty

-Collateral: Non-Owner Occupied Real Estate Only for 1-4 unit investment properties. Collateralized property must be in the same state.
-Closing: typically 2-3 weeks.

-$995 legal fee paid when commitment is issued.

Example 3: Rehab Loan Program w/ Advance Draw!

Fico: 600+ (mid score)
Loan Terms: 6 - 24 months
Loan Amount: $75K to $2.5 Million
Max LTV/ARV: Lender typically finances 75% of the purchase price and 100% renovations (renovations are done in draws). The loan amount is capped at 75% ARV!
Interest Rate: 8.5%-12.5% based on experience. (8.5% for platinum borrows in CA, FL & TX). (Min interest rate in NY, NJ & PA is 9.5%). Interest is charged on the full loan amount from day one.

Property Types: Only 1-4 unit investment properties! This includes Single Family Homes, 2-units, 3-units, 4-units, condos (with HOA approval) and town homes. Condo Conversions Welcomed.
Pre-Payment Penalty: None! On all loans lender requires at 3 months of mortgage payments to be made. If the Borrower wants to remove this, it will up the points by .50%
Use of Funds: Purchase, Refinance, Cash-Out Refinance & Rehab, Purchase & Rehab
Asset verification: No asset verification required. Borrower must pre-pay first 3 months of mortgage payments at close.

Lender Points: 2-3. Lender also has a $999 closing fee. $199 is taken upfront when LOI is issued to run credit and background check. Doc and legal review fee= $125. Tax service & onboarding fee= $89.00.

Lending Territory: Nationwide except (except AZ, DE, ID, ND, NV, OR, SD, UT, VT is $1M-2M only).

Draw Fee: $200 a draw.

Closing Time Frame: 14 days!
Special: This lender allows an upfront draw at closing, which is 5-25% (typically 10-15%) of the purchase price or as is value if property is already owned! All draws are in advance besides the last draw, which is 10% of the total rehab budget. First rehab draw cannot exceed lending over 100% of the purchase price. The leverage on the draw is based on the borrower’s experience Gold borrower: 5-9 fix and flips or fix and holds completed in past 36 months. Minimum 660 credit score. -85% of purchase price and 100% of rehab. Platinum borrower: At least 10 fix and flips or fix and holds completed in past 36 months. Minimum 680 credit score. First draw increased to get to 100% of the purchase price including the base loan. Purchase price can be less than the rehab amount for any borrower.

Borrower Experience: Flip experience is based on sold properties in past 36 months that turned a profit. Current rentals properties can also count towards a borrowers experience but the lender will only consider cash-flowing rentals that they acquired over 12 months ago.

Extra: This lender can finance wholesale fees! Borrower can do 10 deals at once with this lender!

Example 4: 65-70% ARV Ground Up Construction Program

Loan Amount: $75,000 – No Max

Term: 1-3 years

Borrowers Fico: Borrower must have acceptable personal and business credit. If credit is very low; lender needs an explanation as to why.

Interest Rate: 11.5% typically

Property Types: Only 1-4 unit investment properties. No condominiums. Properties in rural areas, large acreage and properties with roads, which are not fully improved, may be considered with restrictive terms.

Max ARV: This lender lends on the ARV (after repair value) of the property. If the home being built will be worth $400,000, 70% of that is a $280,000 loan amount.

Lot Purchase:. Can be financed on a case-by-case scenario

Lender Points: 5 points

Lending Territory: Nationwide besides AK and HI.

Experience Requirement: Borrower must be a full time builder. Builder must have built and sold at least 5 homes. Builder must be the borrower. Home must be in the size and dollar range of builder’s history. Builder must have required licenses; if any.

Other: Borrower can choose their own appraiser; must be a state certified appraiser! Lender does not require title insurance for ground up construction although on rehab loans they do. Construction must start immediately after closing

Rehab Loans: This same lender also does rehab loans. They will lend up to 70% of the ARV on rehab loans. Rehab loans require title insurance. Borrower can still pick their own appraiser for the rehab loans as well.

Example 5: 1 - 12 Months Seasoning- Rental Property Loan Program

Fico: 620+ (Mid fico score must be 680+ if property is owned less than 12 months). Lender allows credit partner to PG the loan for the borrower, but if the borrower defaults the credit sponsor is now responsible for the debt. Credit partner needs to be a previous verifiable partner on deals (not just a relative or friend)

Loan Terms: 30 year amortization. 3-year-fixed (interest only option and balloons after 3 years), 5, 10 year or full 30-year fixed option. All 30-year-Amortizations.

Loan Size: $150K and up on blanket loans. $100,000 loan amount preferred for single asset loans but lender can sometimes go lower.

Property Value:                           There is no minimum property value, but total loan amount between all properties must be $150,000 on a blanket transaction. Min loan amount for 1 property on 1 loan is 50k
Max LTV/LTC:                           75% max (purchase price or as-is value, whichever is the lesser)
-0 to 3 months - 80% LTC (purchase price plus rehab) loan amount limit
-More than 3 months to 12 months - 90% LTC (purchase price plus rehab) loan amount limit
-More than 12 months- no LTC limit
-For properties owned 12 months or less, LTC limit can be waived if DSCR is 1.5 or higher and borrowers credit is 680 or better.
Debt Service Ratio:                      1.20+. For refinance transactions owned less than 12 months if the DSCR is 1.5 or more and credit 680+, lender can move right away.
Interest Rate:                                6.4% - 8.2% (Typically)
Property Types:                            SFR, 2-4 unit, condo, townhome. This lender can no longer blanket MF properties from 5-20 units. All MF properties must now be separate loans. All 5+ Multi-family properties can be done on a 5 YR Balloon IO ranging from 6.9% to 7.2% (plus any credit and/or DSCR rate adjustments) with no prepayment penalty.

Seasoning: 1-12 months. Property must be fully rehabbed and rented out. No seasoning if 680+ credit and 1.5 min DSCR!
Pre-Payment Penalty: Step Down (5, 4, 3, 2, 1)

Use of Funds: Purchase, Refinance, Cash-Out Refinance
Lending Territory: All states except ID, UT, ND, SD, VT

Closing Time Frame: 45-60 days
Appraisal Cost: $500-$600 per property for 1-4 unit properties. Commercial appraisals cost much more from $3,000+.

Lender Points: 1 – 2.50% depending on leverage borrower wants. Lender also has a $990 closing fee!
Special: Can be used as a portfolio/blanket loan as long as all properties are in the same town and state. Secondary financing is not permitted!

Example 6: Low Interest Rate- Rental Loan Program!

Fico:                                              660+. Mid Fico score must be over 660. Borrower must be free of BKs for at least 4 years and have no foreclosures, short sales, or deed in lieu for the past 3 years.
Loan Terms:                                 30 year amortization. Fixed for 5 years, after that interest rate adjusts. Lender also offers a 10-year and a full 30-year fixed option!
Loan Size:                            $60K to 5 Million.

Property Value:                            Property must be worth at least $75k (each property). Lender does offer blanket loans but they need 2+ properties in order to blanket! On blanket loans the total loan amount must be 50k or greater, property value must be 60k or greater on each property. Properties must be in same state in order to blanket.
Max LTV:                                     Up to 75% LTV If fico is over 700. Fico under 700 LTV is capped at 70%. Properties valued less than 110k lender can only extend up to 70% LTV on as long as it meets DSCR requirement.
Debt Service Ratio:                      1.3 on the standard rental program.
Interest Rate:                                5.25%-7.15%
Property Types:                            Only 1-4 unit investment properties. SFR, 2-4 Unit Properties, FNME Warrantable Condos, and Townhomes. Do not lend on modular homes!

Seasoning:                                     6 months
Pre-Payment Penalty:                  Step Down, 5%, 4%, 3%, 2%, 1%.
Use of Funds:                       Purchase, Refinance, Cash-Out Refinance
Lending Territory:                       Nationwide besides NV, ID, MT, ND, SD, NH & ME.

Closing Time Frame: 30-45 days
Appraisal Cost: $500-$600 per property

Reserves: Loans over $1M requires borrower to have at least 10% of loan amount in reserves. Loans under $1M require 6 months of PITI payments in reserve as well as adequate funds to pay the first 3 months PITI upfront. First 3 months of PITI are collected upfront at closing and go towards the first 3 months of mortgage payments. The borrower will not make mortgage payments for the first 3 months.

Lender Points: 2 lender points + 500 processing fee. Lender has a minimum originated fee of $3,500.

Experience: Borrower needs to own their own home.
Special: Tax returns are requested but they are not underwritten off of. Property must be fully rehabbed and ready to rent! Lender goes off of 1007 market rents, so the loan can actually close before the property is fully rented out. Borrower has 60 days after closing to secure a lease. Borrower MUST close in a corporate entity!