Hard $ to Non-Conventional

Reminders for Hard Money to Long-Term Financing - NON-CONVENTIONAL

Catalyst Funding values our relationships with our clients.  We have deep experience and expertise supporting real estate investors. To ensure the loan process is smooth and timely please closely review all items below.

If you have any questions or need clarification, call your loan officer as soon as possible.

 

HARD MONEY REMINDERS:

 

Borrower Portal:

  • The Borrower Portal is where you will follow the progress of your loan(s), submit for draws and many other great features!  You will receive an email invite to create your portal. Once created, your portal is open, and you can access all its features. Please click here to learn more about the Borrower Portal.

 

Closing:

  • If purchasing a property as an individual (not in an LLC) and your spouse is NOT going to be a borrower on the loan, we will require that he or she signs the Deed of Trust at closing.By signing, the non-borrowing spouse confirms that you are making an investment purchase, which cannot be claimed as a homestead property.

 

Loan Payments:

  • Catalyst Funding services its loans internally. You will receive additional information regarding the servicing process and how to make your payments shortly after closing.
  • We require all accounts be paid via auto-draft/ACH. 
  • Please go into your borrower portal and enter your banking info 72 hours before closing. This is a funding requirement. 
  • Payments are deducted on the first of each month.

 

Funding:

  • Funding will typically take place 24 to 48 hours from the time we receive all executed closing documents from the title company.  That includes the documents signed by the seller (which may be closing later than you).
  • If any parties are mail-outs or closing via mobile notary, funding may be delayed by the additional days it takes for the documents to reach the title company.
  • Work should not start on the property until the transaction has funded. Please follow up with the title company regarding the funding.
  • It is your responsibility to coordinate receiving keys from your seller.

 

Draw Request Policy and Procedures:

 

Submit a Draw Request:

  • Draws can be submitted online from any mobile device making the process easy and fast! Please click here to learn about Submitting a Draw Request.
  • Please notify us as soon as the rehab is complete, so we can order the appraisal BEFORE a tenant moves into the It is important you do not move a tenant into the home before ordering your refinance appraisal.

 

Requested Documentation:

  • Your initial pre-qualification is based on your credit and the application provided. If the documents provided do not match with your application, it could adversely impact your approval and/or loan terms.
  • All required documents requests from the loan officer or processor should be submitted no later than 48 hours of request or sooner if specified.

 

 

LONG TERM FINANCING REMINDERS:

Credit Report Factors:

  • Credit must be repulled before closing all Non-Conventional refinance transactions.
  • Making large purchases, putting additional properties under contract, life‐style changes, changing jobs, credit inquires, late payments, reducing bank account balances, transferring funds between accounts or any changes to documents provided are just some of the many factors that can alter the credit score and/or loan approval during the loan
  • If you are considering a financial decision that could impact your credit, income or assets please contact your loan officer immediately & prior to acting, so that we are aware and can provide guidance

 

Appraisals:

  • Catalyst has a special Non-Owner-Occupied panel of appraisers selected for their experience & expertise in appraising investment properties for both Hard Money and Permanent financing.
  • During the short-term financing (hard money) process, the borrower(s) will receive an independent appraisal assessing the “After-Repair Value (ARV).”
  • After the rehab is complete, Catalyst will order an “As Is” independent appraisal for the permanent financing.
  • We cannot guarantee the independent appraiser that completed the Hard Money appraisal will be the same appraiser conducting the permanent financing
  • Each appraiser may have different views of a properties appraised
  • Whether it’s the same or different appraiser, appraisers must consider recent comparable sales after the first appraisal, which could cause differences from the initial appraised
  • Communicate with your LO and order the refinance appraisal before leasing the property.

 

Refinance Eligibility:

  • In order to use the “As Is” value of the property, it must have been purchased 91 days prior to closing.

 

Rates:

  • Rates and fees are subject to change anytime during the loan process.

 

Assets/Reserves:

  • All pages of asset accounts must be provided.
  • All large deposits added to accounts over the last 60 days must be sourced. Please try to limit the movement of money in accounts as this can increase the amount of documentation
  • Borrower(s) must have adequate funds to purchase and refinance for each and all transactions, along with reserve requirements per guidelines. Your loan officer can go over the amount of reserves you will need based on the number of properties you own and or are

 

Additional Notes:

  • You should not purchase additional properties until you consult with your loan officer. That includes loans you may submit with Catalyst or any other lender.
  • This rental must be profitable using the a 1.06 DSCR