Frequently Asked Questions (FAQ)
Get answers to all your questions about money lending and investments from our comprehensive FAQ page
Find Answers to your Mortgage and Money Lending questions, and Explore Various Loan Programs for Easy Financing Options.
Stated Income Loan
What does it mean to have stated income on loan?
A SISA loan, or stated income/stated asset loan, allows you to state both your monthly gross income and your assets. In this case, both items are simply stated, and the bank or lender will not ask you to verify the information.
Can a self employed person get a stated income loan?
However, stated income loans require no income documentation nor tax returns for self-employed borrowers. Since Dodd-Frank, it is now illegal for any consumer to get this loan type for an owner-occupant property.
When did stated income loans stop being issued?
Lenders just needed a borrower’s stated income — hence the name “stated income” loans. Unfortunately, these risky loan types contributed to the 2008 housing market crash, and banks stopped issuing stated income loans as a result.
Where can I get a mortgage with stated income?
If you would like some help finding a mortgage lender, contact us, and we will match you with a lender in your location. The mortgage lenders featured above are 7 of the top stated income / bank statement lenders. If you would like some assistance finding a mortgage lender, we would be glad to help.
What income requirement do you require to get a Stated Income Loan at RGC Capital?
We do not have set income requirements for the borrower, however, the borrower and/or the property must be able to demonstrate the ability to repay its mortgage.
12 Month Bank Statement Loan
How many months of bank statements do you need to get a mortgage?
While most lenders require a minimum of 12 months of bank statements, some lenders may require less. Although not always required, if applicants can provide 24 months of statements, they may qualify for better rates and terms. Most lenders require 12 months worth of bank statements.
Why do lenders want to see your bank statements?
Lenders also take a look at your statements because it helps them avoid fraud and lessens their risk. Most lenders ask to see at least two months’ worth of statements before they issue you a loan. Lenders use a process called “underwriting” to verify your income.
How to qualify for a bank statement loan?
With a bank statement loan you are going to qualify based upon the 12-24 month bank deposits (depending upon the lender) into your personal and/or business accounts. The bank statement lenders want to see a consistent flow of money sufficient to qualify you for the bank statement mortgage.
Which is the best bank statement loan program?
RGC Capital has aligned itself with the best lenders that offer bank statement loans: RGC Capital offers a 12 month bank statement program that will allow you to use 100% of your personal account deposits, and 50% of your business account deposits. Loan amounts are available up to $3,000,000.
Do you offer discount pricing for return borrowers?
Yes, we value repeat customers and will work on providing the best possible pricing and cost for our returning clients.
Private Money Loan
How does private money lending work for real estate?
Private money lending, as the name implies, means borrowing money from an individual investor. Real estate investors use private lenders to finance deals that either won’t qualify for a traditional loan or can’t wait the usual 30 days or so that a conventional mortgage loan needs for approval.
Can a private investor give you a loan?
Conventional financial institutions often refuse to grant mortgage loans for properties that have been vandalized or seriously damaged somehow. On the other hand, private investors see the potential in a property that can be purchased cheaply, fixed for a reasonable price, and then resold for a tidy profit.
What's the difference between hard money lending and private money lending?
Hard money lending is something that lives between private money lending and conventional bank financing. Though hard money lending doesn’t require the usual hoops to jump through that conventional financing does, hard money lenders are semi-institutional and do have their own set of established criteria.
Will you take a 2nd lien position on a loan?
Yes, we will consider a 2nd trust deed loan on a case-by-case basis. Typically, our max combined loan-to-value would be 60% of the appraisal value.
Do you require personal guarantees of the principals?
Yes, in almost all cases we will require personal guarantees.
Fix and Flip Loan
Is it easy to get a fix and Flip loan?
Unfortunately doing a fix and flip is not that easy. This article on fix and flip loans is mean to inform borrowers and mortgage brokers about the true risks and possible rewards of flipping a house. There are many misnomers about fix and flip loans.
What is the interest rate on a fix and Flip loan?
Typically, a hard money fix and flip loan will finance between 80% to 85% of the overall project cost, which means the investor will have to cover the remaining 15%-20% up front. Interest rates can vary but are usually around 8% to 12% with origination points running between 0% to 3%.
Is it worth it to invest in fix and flip?
In reality, however very few people are successful with the fix-and-flip model, as there are numerous conditions that must be ideal for a fix-and-flip investment to be worthwhile.
How quickly can you close?
We understand the importance of a timely closing. Once we have all the necessary documentation, our leadership team will strive to grant a quick pre-loan approval. Our funding timelines may vary depending on the complexity of the deal. With your assistance we will do our best to close your loan in as little as 5-10 business days upon receipt of a complete loan package.
Are you a direct lender?
We are DRE license mortgage brokers with over 38 years of lending experience. We have access to millions of dollars in the private sector with competitive pricing than most other lenders.
Common Queries
Will you extend the term of loan if needed?
Yes. We understand that oftentimes even the best of deals does not go as planned. We do however have to pay for the money that we borrowed. We will consider a loan extension on a case-by-case basis for 1 -2 points per quarter. That’s 1% of the loan amount in addition to the existing payment.
My house is in Foreclosure. Can I get a loan?
If the house is your personal residence, the answer is unfortunately “No”. If the house is an investment property, then there is a slight possibility, However, there needs to be a significant amount of equity in that property or another investment property we can cross. In addition, you will be to display the ability to repay your monthly mortgage. As a last option, we can assist you with a short sale on the property.
Can I get a hard money loan if I have a low credit score?
Yes. Generally speaking, we are far more concerned with what is on the credit report than the credit score. We’ve worked with borrowers who had FICO scores as low as 600. Here is a general rule: if you have had a lien, judgment, bankruptcy, short sale, or foreclosure in the last 12 months, we may be able to fund your deal through our private funding partners. You may have to pay more for this money, and you will have to provide a solid explanation of your situation.
What documents do I need to get started on a loan?
We make it super simple to get approved for a hard money loan. You will need a credit report, a recent bank statement or other documentation displaying that you have liquid funds, and a completed personal financial statement.
What type of properties do you lend on?
We primarily lend on 1 to 4 units of attached and detached houses. However, our loans serve a wide variety of property types to accommodate your needs. These include SFRs, Condos, 2-4 Units, Multi-Family Apartments (5+ Units), Mixed-Use & Mobile Home Parks, Office, Retail, Warehouse, Industrial, Self-Storage, and Automotive, Churches, Banquet Halls, Restaurants, Bars, Night Clubs, Motels, and Vacant Land.