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RDC Interim Lending Summary |
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Interim Lending Guidelines |
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The following serves to summarize RDC Financial Group, LLC guidelines for interim construction loans and rehab loans. Our lending guidelines are for reference only, and may be amended as specific situations merit. |
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To Become an Approved Borrower, Please Provide: |
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- Completed 1003
- Summary of applicant's background, including a list of projects completed
- Completed authorization to pull credit (applicants with scores < 600 may require a co-signor)
- Copy of Social Security card and valid Driver's License.
- Corporate Documents if applicable
- Current Financial Statements (Corp) / Current Bank Statement (Individual)
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General Guidelines |
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- Max LTV = 75% of the completed value on new construction, 60% - 70% on rehabs
- We can advance draw funds as often as weekly. If you need construction funds by Friday, please fax the draw request(s) on Wednesdays for payment on Fridays.
- Interest rate = 18% on new construction and 13.99% - 18% on rehabs and is payable monthly.
- RDC's lender(s) take the greater of a 1% origination fee or $1,250 at closing, whichever is higher. RDC may advance this fee within the loan at origination.
- RDC's processing / administrative fee at origination may vary per loan, but will not be less than 1.75% of the loan amount or $2,250 (whichever is higher).
- RDC will collect all accrued but unpaid interest, any other appropriate fees on reimbursements, and a 2% or $2,500 payoff fee (whichever is higher) at payoff or maturity (whichever comes first).
- RDC charges $500 per loan for inspections and is payable at payoff or maturity, whichever comes first.
- Loan term is 6 months for rehabs and 9 months for new homes.
- Option to renew for additional 90 days with a 1.5% extension fee due at time of extension.
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Prior to Issuing a Commitment Letter for a Loan, RDC Requires Receipt of the Following: |
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- Address of subject property
- Copy of contract
- RDC inspection
- Survey of subject property
- One page copy of floor plan (New Construction)
- Construction budget
- "Subject To" appraisal of finished project
- Contact information for Title Company handling transaction
- Copy of the following city maps (New Construction)
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- Sewer map and water map
- Plat map
- Zoning map
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RDC will require a mortgagee's title policy and a hazard insurance binder which references RDC as additional insured. Loan documents will be prepared in the Dallas corporate offices. Our document preparation fee of $550 per loan will present on the settlement statement at origination.
Please feel free to contact Greg Word at 214-827-6777 with any questions. |
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