Residential Bridge
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