Loans from our lenders start at various interest rates with 2 points minimum. We can’t say for sure what rate you will get without reviewing your full application and knowing the specifics of the property.
We look at both the borrower and the property on all of the loans. For the borrower, the main things our lenders consider when determining rate and term are experience, income, liquidity, net worth, and credit score. For the property, our lenders consider type of usage, extent of renovation, and as-repaired value (ARV). However, Covenant Lending Group can be creative with all loan scenarios in a way traditional lenders are not able to.
To ensure a swift loan closing, we recommend allowing us to handle the appraisal process. However, if you already possess a completed appraisal, we'll consider utilizing it post-evaluation.
The rehab funds for your loan are deposited into an escrow account upon funding. As you progress with the project, funds are disbursed incrementally through a series of draws. Once expenses are incurred, an inspection of the property will be conducted to ensure the work meets the necessary requirements. Following a successful inspection, the corresponding draw will be released, allowing you to continue your project without delay.
Our lenders typically receive the inspection report within 48 to 72 hours, ensuring a swift review process. Once the report is confirmed, funds are generally disbursed the very next business day, allowing for seamless and timely progress on your project.
You are responsible for the cost of hiring an independent inspector to verify the completed work on the project. This inspection ensures that all progress is in line with the necessary requirements. The cost for this service is typically under $200, offering an affordable way to maintain quality oversight of the work being done.
