Parapet Capital Partners, LLC

Direct Lender for Home Acquisition & Renovation Financing

        FAQ's

 

1)     How fast can you close?

We can close our loans in 5-10 days after receipt of all information.

 

2)     How soon can I expect a preliminary approval?

Usually within 24-48 hours, if the submission is complete.

 

3)     What is your maximum loan to value (LTV)?

     20% Cash Down Payment of Purchase Price Required for First Time                    Customers. For Repeat Customers, we can lend up to 100% of the                   purchase price and repairs, but the loan must be less than 70% of the After      Repaired Value (“ARV”). 

 

4)     What is the minimum credit score you will accept?

We do not have a minimum Credit Score, however we do pull credit report, and we do look at payment patterns, especially mortgage and auto pays.  Credit score and financial strength will factor into the maximum LTV and interest rate.

 

5)  Do I have to prequalify every time I do a loan with Parapet Capital Partners, LLC?

             You are pre-qualified after your 3rd Parapet loan in the last 12 months. 

 

6)      What are your loan origination fees and interest rates?

Loan origination fees equal 2% to 4% of the loan amount and interest rate’s range from 12% to 14%.

 

7)     What types of properties will you lend on?

We currently lend on non-owner occupied residential 1 - 4 family homes, investor properties, townhomes, land, and small apartment buildings are considered on a case by case basis.

 

8)     What lien positions will you lend against?

First liens and second lien positions for well qualified borrowers.

 

9)     If I already own the property and I want to Rehab it for resell, will you refinance it?

Yes, as long as it is non-owner occupied.

 

10)   What are your standard terms?

 12 months.

 

11)   In what areas do you lend?

We focus on properties located in the New York City metro area and Northern New Jersey, concentrating on the 75 mile radius around New York City.

 

12)   What are your minimum/maximum loan amounts?

Our minimum loan amount is $100,000 and our maximum is generally $500,000, but may go higher under specific circumstances.

 

13)   Is an appraisal required? Will you accept a third party appraisal?

An appraisal is performed by us. We do not accept third party appraisals. The comps used will be from similar properties in terms of size, age, condition, construction, etc. within a radius of 0.75 miles from the subject property that have sold within the previous 6 months.

 

14)   Do you charge prepayment penalties?

No, your loan may be prepaid at any time without a prepayment penalty. The faster you rehab a property and sell or refinance it, the more profit you make.

 

15)   Do you lend money for repairs?

Yes, we lend money for repairs provided the total loan amount does not exceed 70% of the ARV of the property.  Repair money will be held in escrow and will be released in draws as you complete the renovations on your property.  The Rehab portion of the loan typically cannot exceed 150% of acquisition cost unless otherwise approved.   The borrower is responsible for paying their contractors and material suppliers.

 

16)   Do you provide proof of funds letters?

Yes, provided you have been pre-approved.

 

17)   Can anyone live in the house during the course of the loan?

No, we only lend on non-owner occupied properties.

 

18)   Do I need to have a property under contract before applying for a loan?

No, we can pre-approve you for our loan program prior to placing

a property under contract.

 

19)   Do you require a down payment?

It depends upon the buyer’s financial strength and property details.   We may finance 100% of the purchase price and 100% of the repairs up to 70% of the After Repaired Value (“ARV”) of the property.

 

20)   Can the points, closing costs, and interest be rolled into the loan?

Yes.  The options of monthly interest & principal, monthly interest only, or balloon payments are available and are dependent upon Borrower experience with Parapet.

 

21)   Are there any upfront fees, application fees, or inspection fees?

Upon providing a formal commitment letter, a $495 commitment fee is payable.  If the transaction closes, and depending upon the loan program, this fee may be credited towards your origination fee.  Upon issuing a commitment letter, we will perform an inspection/appraisal and the actual cost must be paid by the borrower in advance.  After inspection/appraisal we will instruct our attorney to order a title search on the property and prepare closing documents. The borrower will be required to pay for the document preparation in advance to our attorney.  At closing, all costs (i.e. title insurance, recording fees, etc.) can be financed as part of the loan proceeds.

 

22)   Are there late fees?

 Yes, a penalty may be incurred if there is a late payment.

 

23)   Do you require a personal guarantee?

 Yes.

 

24)   Can I hold title in a corporation, LLC or Trust?

 Yes, but we do require personal guarantees from the principles.

 

25)  Will an attorney representing Parapet be involved in the closing?

Yes, a Parapet attorney, at Borrower's expense,  will coordinate the closing.  We suggest that the Borrower engage their own attorney to protect their interests as well.

 

26)   Where does the money come from to fund the loan?

We are direct lenders, not mortgage brokers, we control our own funds and we make all decisions directly.  The source of funds comes directly from our own balance sheet or investors.  This could range from one individual investor to a group of private investors who each fractionally invest in a real estate loan, or a group of private investors who have already pooled their funds and rely on us to fund loans to qualified borrowers.

 

27)   Is this product only for desperate borrowers?

Not at all.  There are numerous  transactions that just don’t fit the conventional lending mold and we offer another means of financing these transactions.  Commercial bridge loans, land loans, and residential rehab loans are all examples of difficult loans to get from a bank.

 

28)   Are you out to steal my property?

We have no desire to take your property.  We earn our living by funding and servicing your loan.  If we take your property, the income stream of the loan stops, so our incentive is to keep you in the property, not take it.

 

29)   Where will I make my payments?

 You make your payments directly to Parapet Capital Partners, LLC.

 

If you have any further questions, please contact us at:

 

info@parapetcapital.com

 

(646) 845-9292
 
or
 

 

We will be happy to assist you!