FREQUENTLY ASKED QUESTIONS
GENERAL QUESTIONS
What is a Bridge Loan?
A construction loan is a short-term mortgage used to acquire a property quickly. Generally this financing is used until permanent financing is found, the home is resold, or it is rehabilitated/built and then resold.
Who needs a Bridge Loan?
Property investors that are acquiring investment properties are the most common customers of Crowder Financial. Anyone buying properties on market or in distress, rehabbing, and reselling is a potential customer for us.
Do you fund the construction costs?
Yes, we specialize in construction lending that includes Repair or New Build Cost(s). We will lend up to 90% of cost on single family, 85% of cost on multi family and 75% loan to cost on misc. commercial use properties.
How are construction draws handled?
Our borrowers request a draw. Within 48 hours, one of our licensed contractors inspects the work completed. Within 24 hours after the inspection, the funds are released. There is a charge for each draw that is deducted from the draw amount. We don’t make any money on construction draws. The cost of the draws go directly to our contractors to ensure that the work is done properly and within code.
What is a rental loan?
A Rental Loan is a medium to long term loan for income-producing rental investment properties. It is underwritten primarily against the property value and the cash flow of the property itself, with less emphasis put on traditional credit factors.
Who needs a rental loan?
This loan is tailored towards both small and larger operators who have one or more rental properties that are successfully producing cash flows sufficient to pay a mortgage. We offer both purchase and refinancing options.
How much documentation do I need to provide?
Depending on the loan, we collect different documents. Our systems may ask for documentation not applicable to you, in which case you do not need to provide us that information. However, in general, the more information you can provide, the more opportunities exist for us to uncover the right financing program for your situation.
How does your pre-qualification process work?
Our pre-qualification process allows you to quickly gauge how much funding you are eligible to receive for your real estate investment project. We will require you, either through our online application or on the phone with one of our loan consultants, to provide the following information:
Your experience in real estate investing. (how many deals have you done?)
Total amount of money available to invest in your real estate projects.
Your overall credit profile.
Subject Property Information
Can I schedule a call with a loan consultant?
Yes, you can schedule a call with one of our loan consultants through Here, or you can call us at 407-942-2040 to quickly gauge how much funding you are eligible to receive for your real estate investment project. We will require you, either through our online application or on the phone with one of our loan consultants, to provide the following information:
Your experience in real estate investing. (how many deals have you done?)
Total amount of money available to invest in your real estate projects.
Your overall credit profile.
Subject Property Information
How to make payments?
We conduct in-house and contract with 3rd parties to service and accept payments for your loan. You will receive a full welcome package with instructions directly a from servicer within 2-4 weeks of closing. Your payment will be due on the 1st of the month and the automatic Automated Payments (ACH), Wire and Monthly Checks are all acceptable forms of payment
How do I payoff my loan?
To request a payoff, please request directly from our Lender Services or email support@crowderfinancial.com with your request. Please have your recent statement or Account # to provide in the request. Crowder Financial sometimes cannot process a payoff directly because the servicer maintains your daily account balance and year-end interest tax reporting. support@crowderfinancial.com - 407-942-2040
How do you determine the loan amount?
Leverage is determined by the borrower’s experience. We could potentially lend up to 90% LTC.
What states does Crowder Financial, LLC currently lend in?
Crowder Financial, LLC provides loan options in all States and The District of Columbia most deals considered on a case by case basis
Construction Loans
What type of bridge construction loan rates are offered by Crowder Financial?
Crowder offers competitive bridge, renovation & new construction loan rates. All rates are based on the individual property and borrower. Contact us to learn more.
What type of properties are eligible for construction bridge funding?
Single Family & Multi Family Properties: Apartments, Condos, Townhomes, Single Family
Commercial Mixed Use, Office, Retails, Self Storage, Senior Housing, Student Housing, Warehouse, Industrial, and more….
What are the loan amounts for construction bridge loans
Crowder offers loans from $1,000,000 to $100,000,000
What type of documentation is required?
Online application completed by borrower
2-month bank statements
An Experience Spreadsheet to detail your past accomplishments
Sales Contract (on purchase) or HUD Statement
LLC Operating Agreement or Articles of Corporations
Driver’s License
Scope of Work - Draw Schedule
If New Construction then building plans and permits
Other documents and/or materials may be requested based on the individual borrower’s circumstances and collateral.
Who is eligible for our construction bridge loans?
U.S. Citizens
Canadian Citizens
Permanent Resident Aliens
LLCs, Limited Partnerships, General Partnerships, Corporations
Can I receive financing for a residence that I'm looking to live in?
No. Crowder provides commercial only loans that are non-owner occupied (investment) properties. Unless you are transacting on a $3,000,000 plus commercial project where your company occupies less than 50% of the total rent-able sq ft.
Is there a prepayment penalty?
No, there is no prepayment penalty on our 6-36 month loans.
What type of rental loan rates are offered?
Crowder offers competitive rates for both 30-Year Fixed-Rate Loans and 5/1 hybrid adjustable rate mortgages. All rates are based on individual property and borrower. Call us to learn more.
What type of properties are eligible for rental loans?
Single Family Residence (SFR) 1-4 Unit Properties
Multi Family Properties
Commercial Mixed Use, Office, Retails, Self Storage, Senior Housing, Student Housing, Warehouse, Industrial, and more….
PUDs
Warrantable condos must meet Fannie Mae warrantability requirements
2 acres maximum
Non-warrantable condominiums not allowed
What is the minimum and maximum loan amounts for rental loans?
Crowder offers loans from $1,000,000 to $100,000,000
What type of documentation is required for rental loans?
Online application, completed by borrower
No Tax Returns Required
Lease(s) – (if currently rented)
Sales Contract (on purchase) or HUD Statement
LLC Operating Agreement or Articles of Corporations
Driver’s License
Appraisal
Other documents and/or materials may be requested based on the individual borrower’s circumstances and collateral.
Who is eligible for our rental loans?
U.S. Citizens
Permanent Resident Aliens
Foreign National Borrowers
What is Debt Service Coverage Ratio?
Debt Service Coverage Ratio (DSCR) is a calculation that helps us determine if a rental investment is generating enough income to make its loan payment obligations.
DSCR is calculated by the following simple formula:
DSCR = Monthly Gross Income
PITIA*
*Principal, Interest, Taxes, Insurance and Association Fees.
What are the cash out eligibility and restrictions?
Residential 30 Day - 3 Month seasoning from note date
Loans not eligible for cash-out: Properties listed for sale by the borrower in the past three months
Commercial 3 Month seasoning from note date
Does my rental property have to be leased before closing?
An executed lease with no less than 3 months remaining at time of close
Unleased properties the gross rents indicated on the 1007 may be used
Gross income is the lower of actual rents and market rent as indicated on Form 1007
Can I live in one of my rental properties or rent it to a family member?
No. Crowder provides commercial only loans that are non-owner occupied (investment) properties.
Is there a prepayment penalty?
Prepayment penalty conditions are as follow:
Term: 3, 5, 7, 10, 15, 20 & 30 Years Options
3, 2, 1 step-down prepayment penalty
(3% of loan balance in first year, 2% of loan balance in second year, 1% of loan balance in third year)5 Yr Prepay Options Exist - Inquire Within
0 Yr Prepay Options Exist - Inquire Within
OUR LENDING FOOTPRINT IS NATIONWIDE!
CA, OR, NV, AZ, ND, SD, VT, RI, AK, HI - CASE BY CASE BASIS
What is a Commercial Loan?
A commercial loan is a debt-based funding arrangement between a business and a Lender such as a bank, private or hard money lender. It is typically used to fund major capital expenditures and/or cover operational costs that the company may otherwise be unable to afford.
Expensive upfront costs and regulatory hurdles often prevent small businesses from having direct access to bond and equity markets for financing. This means that, not unlike individual consumers, smaller businesses must rely on other lending products, such as a line of credit, unsecured loans or term loans.
How a Commercial Loan Works
Commercial loans are granted to a variety of business entities, usually to assist with short-term funding needs for operational costs or for the purchase of land and to develop or newly construct properties for long term future use. Or, maybe purchase an existing facility and renovate according to the future uses.
These loans often require that a business post collateral, usually in the form of property, plant or equipment that the lender can confiscate from the borrower in the event of default or bankruptcy. Sometimes cash flows generated from future accounts receivable are used as a loan's collateral. Mortgages issued to commercial real estate are one form of commercial loan. [Important: Commercial loans are most often used for short-term funding needs.]
Securing a Commercial Loan
As is true for nearly every type of loan, how creditworthy an applicant is plays a starring role when a Lender considers giving out a commercial loan. In most cases, the business applying for the loan will be required to present documentation, generally in the form of balance sheets and other similar documents that proves the company has a favorable and consistent cash flow. This assures the lender that the loan can and will be repaid according to its terms.
If a company is approved for a commercial loan, it can expect to pay a rate of interest that falls in line with the prime lending rate at the time the loan is issued, possibly plus several points. Lenders typically require monthly financial statements from the company through the duration of the loan and often require the company to take out insurance on any larger items purchased with funds from the loan.
Special Considerations for Commercial Loans
While a commercial loan is most often thought of as a short-term source of funds for a business, there are some Private Lenders or other financial institutions that offer renewable loans that can extend indefinitely. This allows the business to get the funds it needs to maintain ongoing operations and to repay the first loan within its specified time period.
After this, the loan may be rolled into an additional or "renewed" loan period. A business will often seek a renewable commercial loan when it must obtain the resources it needs to handle large seasonal orders from certain customers while still being able to provide goods to additional clients.