Our standard eighteen month, interest only loan programs are as follows:
1. 9% interest rate, 6 points to lender, no prepayment penalty,
2. 12% interest rate, 3 points to lender, with a 3% prepayment penalty in year one only,
3. 15% interest rate, zero (0) points to lender, with a 6% prepament penalty in year one only.
Our Loan-To-Values (LTVs)
This will vary significantly depending on the property type, but can range between 50% and 85%. Our average LTV is about 70%.
We lend a percentage of the LOWER of (i) the "As-is" value or (ii) the acquisition price. While there may be some great bargains in the local real estate market, we assume there aren't for decision making purposes.
