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REO / Rehab - Construction -
Sub Standard Property – Deferred Maintenance
REO / Rehabilitation
(Rehab) Loan:
This loan program is designed for borrowers or investors who are buying
real estate at a substantially reduced price, because of sub-standard
condition of the property, or if a borrower already owns a property and
wishes to complete a rehab of the property. The program provided the funds
to purchase and to rehab the subject property without a substantial down
payment from the borrower
Our loan program is specifically designed for borrowers who see the
potential "Future Value" of a property and who plan on
completing a rehab and selling the property for a substantial profit. We
base the value of the property on the "Future Value" (value
after all improvements completed), and depending on the type of
improvements required we may require a licensed contractor to complete the
project and have the funds for the project be controlled by a "Fund
Control Escrow". Or if the improvements are cosmetic and require no
more than five thousand dollars to complete the improvements we may not
require a contractor or fund control and allow the borrower to complete the
project on his/her own.
Fund Control Escrow:
A fully licensed escrow service specializing in the accounting &
disbursement of construction/rehab funds and understands the role each
party plays and strives to balance the unique relationship between the
lender, borrower and contractor, as well as protect the interest of all
parties. Fund Control is a check and balance construction accounting
system, which protects the interest of all parties. We work with several
different Fund Control companies if you would like additional information
please contact:
These loans are funded through our network of private investors and we
lend up to 65% of the property’s future value. The term of 36 months
and interest only monthly payments and upon completion of the rehab the
loan may be paid off by way of the property sale or refinance, this loan
has no pre-payment penalty and can be paid off or refinanced at any time
during the term of the loan.
This program is generally for loans under $250,000.00 and prefer
properties of single family residence (SFR) and 1-4 units (apartments) in Southern California, we will consider loans up to
$500,000.00 on a case by case basis. The fees and costs may vary on each
loan please call for details.
If you would like a preliminary approval for a specific loan amount, we
can perform a no-cost, no-obligation pre-approval with the following
information:
- Completed 1003 loan
application.
- Credit report, if
not available we will run credit report.
- If self-employed the
most current Profit & Loss Statement available.
- Description of the
subject property and color photos (if available)
- Upon approval we
will issue a pre-approved letter.
Construction Loan:
The program is designed for the borrower who cannot or does not want to
meet the lending criteria of the conventional lender. Normandy’s equity lending criteria is
used in the approval process.
Ground up construction: For purchase of land & construction
costs or already own the land, we will lend up to 65% of the future value
on single family home, lend up to $350,000.00 on a 1st Trust
Deed only and Fund Control Escrow required. Terms of up to 3 years interest
only monthly payment and no pre-payment penalty.
The fees and costs may vary on each loan please call for details.
Work in Progress: Purchase or complete a project that is
partially completed will lend to complete the construction or remodel, loan
based on 65% of the future value. Available on SFR & 2-4 units, 1st,
2nd or 3rd T.D. and loans up to $350,000.00. The fees
and costs will vary on each loan please call for details.
Sub Standard Property or Deferred Maintenance: Will lend to rehab
or repair property and base the loan amount on 65% of the future value
using the same criteria as the work in progress loan. The fees and costs
will vary on each loan please call for details.
(800) 576-0102 Fax (714) 632-9752
Normandy
Mortgage Servicing Co.
Revised 4/15/08
©1999-2001
Normandy Mortgage Servicing Co.
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