Property Criteria

1. First Lien only

2. LTV of ARV “After Repaired Value”
• We will loan up to 75% LTV
• One to four family units (Multi-family units will be considered on a case by case only)
• Maximum loan $350,000 on single family residential properties
• Larger loans may be granted for multi-family properties

3. Appraisals
   • All appraisals will be ordered by capstone Funding and will include an “ARV” value.  A list of repairs is required for the appraiser and loan officer to complete the process.
   • Loan request over $350,000 will require two separate appraisal prior to funding.
4. Mortgagee title policy is required at the time of closing

5. Lender will choose the closing attorney unless specified in contract and is a bank owned property

6. A 12 month insurance policy will required at the time of the closing with Capstone Funding as the Payee.
   
   

Customer Criteria

1. Capstone Fundings’ Commercial Loan Application must completed signed and dated.

2. Schedule of real estate owned must be completed (available on our Forms page).

3. Two years most recent taxes 1040’s.

4. Credit report that indicates a middle score of 620 or higher. We may make loans for lower credit scores and they are reviewed on a case by case basis.

5. Points to be paid at closing for a first time customer.

6. Signed sales Contract with estimate for construction rehab must be included if applicable.
   
   

Loan Programs

Up to 75% of the ARV or “After Repaired Value”

• Six month loan term interest only paid monthly.
• Fourteen percent interest-only payable monthly.
• Four points.
• Appraisal completed by Capstone approved appraiser.
• All credit scores will be considered.
• At maturity if the following is done (Home completed and payments made on time):
  1. A 90 day extension with a 1% fee can be rolled into the loan.
  2. If an additional 90 days is required, 16% interest will then apply.

Draw Procedures

There are no minimum or maximum draws that may be made on any given property.  You pay a flat fee of $450 at closing that pays for your inspections in advance.  Funds will be disbursed only on a percentage of completion basis.  This simply means you get only for what has been or is being installed or completed on the day of inspection. 

All interest payments must be current in order to receive a construction draw.  Interest payments are due on the 1^st of the month.  You have a grace period until the 5^th. Interest is considered LATE after the 5^th of the month.

Note:  No funds will disbursed at the closing table. 

Please follow the following steps in order receive a timely credit for your draw:

1. Please fill out the draw request form (found on our Forms page).  Identify the items that have been or are currently being completed.  * Note – These items should match the estimate that was originally given to the loan officer when the loan was processed and approved.
2. Fax or e-mail before the end of the business day on Wednesday of the week you are requesting a credit for your draw.
3. Include with your request a signed Lien Waiver signed (available on our Forms page).
4. Include a wire request form to us if you choose to have your money wired.

An inspection will be preformed by the loan officer who originated your loan.  At this time he/she will confirm the percentage that has been completed and photos will be taken to document your progress.  The draw request will then be compared to your original estimate provided to the loan officer when the loan was processed.  If approved, the draw will then be processed and funds wired on Friday.

* Note – In the event of a Holiday that falls on a Thursday or Friday ALL  draws will be processed and funded that following Monday.