Residential Bridge

RESIDENTIAL LOAN
LOAN PROCESS
BORROWER/GUARANTOR
INSURANCE REQUIREMENTS

Residential Bridge Loans Are Short Term, Up To One Year,  And Are Usually Backed By Some Form Of Collateral, Such As Real Estate Or Inventory.

LOAN SIZE

$75,000 to $2,000,000 Aryming will consider loans with a total principal balance greater than $2,000,000 on a case-by-case basis

LOAN PURPOSE

Residential Business Purpose:         

  • Acquistion
  • Refinance

LOAN STRATEGY

Fix Loans:             

  • Fix to Rent
  • Fix and Flip

Bridge Loans:

  • Buy to Rent
  • Bridge

PROPERTY TYPES

Single-family residential (1-4 units). No land or ground-up construction

LOAN-TO-VALUE (LTV) MAXIMUM

Maximum Loan Advance Rates:                           

  • 80% of “as-is” LTV
  • 90% Loan-to-purchase-price (LTPP), for acquisitions
  • 100% cumulative-loan-to-value (CLTV)
  • 70% loan-to-after-repair-value (LTARV), for loans with construction reserves
  • The maximum for cash-out refinance is 65% LTV and 60% LTARV

Loan advance rates are contingent on loan terms, such as cash-out, loan strategy,
subordination, FICO, and other characteristics.

TERM

3 to 24 months remaining; terms longer than 24 months will be considered on a case-by-case basis.

LIEN TYPE

First-position trust deeds and mortgages

LOCATION

United States (excluding South Dakota and Minnesota).

Will not purchase loans for rural properties. Generally, if there are fewer than three sales comps within three miles, the property will be considered rural.

High-rise condominiums in Las Vegas or Florida will not be considered. First-generation condominiums or housing communities will not be considered.

INTEREST RATE

Generally loans with fixed note rates of 8.0% or higher.

PARTICIPATION POSITIONS

Lenders may retain a B-piece or have the option to participate side-by-side with our third party in a pari passu position.

JUNIOR LIENS

Allowed with intercreditor agreement. All subordinate liens must be co-terminus with or mature after the first mortgage (or deed of trust).

RECOURSE

Recourse in the form of a personal guaranty is required for entity borrowers, including trust borrowers. At least one guarantor must be an owner of the borrowing entity. Individual borrowers are allowed

MULTI-COLLATERAL

Subject to all properties conforming to the marketplace credit box.

MULTI-COLLATERAL

Subject to all properties conforming to the marketplace credit box.

LOAN PROCESS

VALUATION

Aryming requires a valuation on all properties. Acceptable forms include appraisals and interior BPOs (broker’s price opinion). You are encouraged to please ask for our approved valuation vendor. Loans over $1,000,000 require an appraisal. Loans with construction reserves require an appraisal for the after-repair value (ARV).

CONSTRUCTION MANAGEMENT

Aryming requires approved third-party construction management to oversee the draw process, including inspections. Upon submission of draw requests, Aryming will collect third-party progress inspection reports, lien releases, and receipts in order to determine approval of draw request. Loans with construction reserves that exceed $250k or 40% of the unpaid principal balance are subject to a higher level of due diligence and require case-by-case approval

SERVICING

Aryming uses a third party to purchase the loans

BORROWER/GUARANTOR CHARACTERISTICS

BORROWER TYPE

Individual or U.S. entity required

BORROWER/GUARANTOR CREDIT SCORE

Minimum credit score of 600 for the borrower/guarantor is required, but exceptions or mitigation may apply on a case-by-case basis.

BANKRUPTCY

The borrower/guarantor must be at least one year removed from discharge/dismissal.

BORROWER/GUARANTOR TRACK RECORD

  • At least one previous project is required for rehab loans (exceptions on a case-by-case basis)
  • No track record is required for buy to rent and bridge loans

OFAC (BACKGROUND) CHECKS

  • Required for all borrowers and guarantors.

BORROWER ELIGIBILTY AND DOCUMENTATION

  • A U.S. Citizen or a permanent resident alien. If the borrower is a U.S.-domiciled company, then a Certificate of Good Standing must be provided.

INSURANCE REQUIREMENTS

TITLE INSURANCE

  • ALTA 2006 form policy.
  • Minimum coverage of 100% of loan balance.
  • Signed escrow instructions.
  • Copies of all title exceptions to review, if requested.
  • All loan files that contain a title commitment or preliminary title report issued by a title agent, on behalf of a national title insurance company, must include a closing protection letter (agent authorization letter in NY) with ISAOA language; if the file contains a final title insurance policy, a closing protection letter is not required.

PROPERTY, CASUALTY, LIABILTY, AND OTHER INSURANCE

  • Coverage must equal the lesser of the replacement cost or loan amount.
  • Lender must be listed as mortgagee, loss payee, or additional insured.
  • Coverage must include fire and extended perils, and other hazards customary to the area.
  • Flood insurance required for FEMA-designated special flood hazard areas.
    Hail and wind coverage may be required