Parapet Capital Partners, LLC

Direct Lender for Home Acquisition & Renovation Financing

Costs of a Parapet Loan?   


Our loans will cost more than bank loans because they are privately funded and not insured by a bank or a government entity.  


Interest rates are higher for several reasons:

 

  1. Real estate loans in this category represent a higher risk than traditional mortgages and need to be priced accordingly
  2. We can lend up to 100% of the purchase price and rehab costs and up to 75% ARV, which is much greater than traditional banks
  3. A non-prime credit score may be overlooked given satisfactory LTV's
  4. Closing costs may be financed so there is no out-of-pocket costs to the borrower
  5. We can close within 5 days

 

Up front points are usually 3% - 5%, and the interest rate is generally 13% - 15%, depending on the risk.  The points and rate will vary based on the loan type and amount.