Do you lend on owner-occupied houses?
No. We only provide financing for investment properties. This means that the borrower cannot live on the property at any time during the course of the loan nor intend to purchase and rehab a property to serve as a personal residence in the future.
Do you provide proof of fund letters?
Yes, you can get pre-approved for our FixNFlip loans on our website. Pre-approval typically takes 24 hours or less.
Do you lend to foreign investors?
We do lend to experienced foreign investors with our FixNFlip program. There will be a slight adjustment to the maximum leverage offered to foreign investors with previous U.S. real estate investment experience.
How does my credit score affect the approval of my application?
For our FixNFlip loan program, we require at least one member of the entity to have a credit score of 600 or above. Note that the majority capital provider on the deal must be the member of the entity to meet the credit requirements.
Can I pay off the loan at anytime?
Yes, there is no pre-payment penalty with our FixNFlip loan program.
Is an appraisal always required to fund a loan?
An appraisal is required for all FixNFlip loans. Although the appraisal is an expense for the potential borrower, it protects him or her from making a mistake and owning a new mortgage on a property that is already underwater due to too many foreclosures in the area. Appraisals are the last step in the application and underwriting process. They are conducted only after the borrower is approved and the estimate of cost has been accepted by the borrower. Lima One Capital makes no money off of the appraisals and the potential borrower pays our approved appraisers directly.
How are construction draws handled?
For rehab loans the borrower may set-up a draw schedule specific to their needs. Upon completion of work corresponding to the draw amount the borrower may request a draw. Within 2-4 business days, one of our licensed contractors inspects the completed work. Within 24 hours after the inspection report is received, the funds are released. There is a $200 charge for each draw that is deducted from the draw amount. We don’t make any money on construction draws. The cost of the draws goes directly to our contractors to ensure that the work is done properly and within code.
*Note this process will vary for new construction loans.
Do you finance ground-up, New Construction?
Yes, we do finance ground-up, new construction. This loan program offers the same rates and terms as the FixNFlip program but with a construction draw process tailored to new construction projects.
Can I cross-collateralize properties to lower my down payment at closing?
Yes, if you own a property, Lima One Capital will often times use that property as collateral instead of requiring a down payment for your project.
Where do you lend?
We lend in 41 states and Washington, D.C. For a full breakdown of our lending area click here.
Do you lend on commercial properties?
We lend on residential and multifamily (5+ unit residential) investment properties. We currently do not lend on commercial properties.