Frequently Asked Questions

A hard money loan is an asset-based loan through which a borrower receives funds secured by real property.

ResCap understands your business because our partners have flipped over 1,000 properties and are still in the business themselves. We fund loans up to 100% of 75% of ARV and will approve your loan in an expedient manner. We have rehab and lending experts on the ground in the markets we serve.

You can apply to be pre-approved based on your credit and financial statement with or without a property under contract.

ResCap understands that we all have to start someplace so we will consider people with little or no experience. In these cases, we will typically be looking for a little higher credit score and some more liquid capital to qualify. We will also want to know you are working with an experienced contractor. New investors will be limited to one deal at a time with low to moderate repairs.

We will supply a Proof of Funds Letter once you have been pre-qualified by ResCap. There is NO COST to get pre-qualified.

We will order the appraisal. At ResCap, we perform our own desktop appraisals to accelerate the process. This unique approach helps our borrowers reach closing much quicker.

The approval of a loan usually takes about 2 business days. Once approved, all we need is a valid appraisal, clear title and evidence of insurance to close the loan. On average, a loan that is submitted can fund within 14 days.

Our interest rates start as low as 8%. ResCap charges a $700 appraisal and processing fee, a $1,000 document preparation fee and an origination fee of 3 points. The origination fee, otherwise known as points, can be rolled into the loan.

A point refers to the origination fee charged by a lender in a real estate transaction with 1 point equaling 1% of the amount of the loan.

We charge interest on the funded note amount. Unlike some other lenders, we will not charge interest on repair funds until they are drawn.

100% of purchase and repair costs up to 75% of After Repaired Value (ARV) for experienced investors or 65% of ARV for newer investors. We will consider properties over 75% (65% for newer investors), but you will need to make up the difference at origination.

After Repaired Value is the fair market value of the house after you have made the repairs to the home contemplated by your fix-and-flip business plan.

We confirm the ARV against the appraisal and use 65%, 70% or 75% of the appraised value, depending on borrowers experience.

ResCap makes loans between $100,000 and $1,500,000.

We check your credit, financial strength and industry experience and provide you with a Proof of Funds letter.

9 months.

Simply go to our website and apply on-line.

Single family homes, duplexes, triplexes and quadplexes.

Yes, prior to funding your fix-and-flip loan, we will send an appraiser to the property to verify the condition of the home and confirm its ARV. We also send inspectors to the property with each repair draw to confirm that the repairs have been completed in a workmanlike manner.

Yes. We require an insurance policy on each property for which we have an outstanding loan.

Provided you have clear title, a completed appraisal and insurance on the property, we can wire funds to you within 24 to 48 hours.

We wire closing proceeds directly to the title company or attorney. We wire repair draw reimbursement to the borrower’s bank account.

After completing the work, submit your draw request and ResCap will send an inspector to the property to verify that the work has been done in a workman like manner.

Yes, but it is a “soft pull” that will not affect your credit score.

Credit issues alone will not prevent a borrower from qualifying for a loan; however, the liquidity and experience of the borrower will need to be even stronger if there are credit issues to consider with the loan request.

ResCap will only make a loan to an LLC or other special purpose business entity (i.e.: partnership). If you do not have an established entity set up, you will need to set one up prior to us funding your loan.

Yes. ResCap requires the loan closing to be completed at a title company or attorney’s office.

At closing, the borrower needs to bring money required to pay for title insurance, property insurance and any other closing costs above 65%, 70% or 75% of ARV depending on experience.

Yes. ResCap requires the borrower to submit the prior year’s tax return, the most recent pay stub and the most recent bank statements of the borrower (personal and business).

ResCap has lending affiliates in North Carolina, South Carolina, Connecticut, Massachusetts, New Jersey, New York, Pennsylvania, Florida, Georgia, Tennessee, Ohio and Texas.

ResCap does not do construction loans at this time.

ResCap will consider heavy rehab loans; however, the borrower will have to prove successful prior experience with a heavy rehab loan.

No. Under no circumstances will ResCap consider a land loan.

No. Under no circumstances will ResCap loan money to a borrower on their primary residence.

Yes. A hard money loan is an asset-based loan through which a borrower receives funds secured by real property.

Yes. To obtain more than one loan at a time, the borrower must have the financial strength and industry experience to be proven worthy of managing more than one fix-and-flip project at a time.

ResCap will consider a 90-day extension for performing loans that need additional time to complete the repairs prior to sale. An extension fee of 1 point will be charged.

Under special circumstances, ResCap will loan less than $100,000.

We will loan on projects with combined purchase and repair costs up to 75% of the after-repair value. Experienced investors will have to bring additional funds to the table where purchase and repair costs are over 75% or 70% of ARV or over 65% ARV for new investors.

No.

No. There are no pre-payment penalties on a loan that is paid in full prior to the expiration of the term of the loan.

As long as a borrower meets our basic criteria we will offer them “No Money Down” financing. Experienced investors, those that have completed 10 or more rehab projects or have successfully closed out 5 Residential Capital Partners loans, qualify for 100% funding up to 75% of the after-repair value. Borrowers having completed fewer rehabs qualify for 100% funding up to 65% of the after-repair value.