Frequently Asked Questions

Yes, we are a direct lender which simply means that the money we fund our loans with is our own and is readily available. Some lenders must raise money to fund their loans or have to go out and find a direct lender to fund their loans, we do not.

Simply fill out our express loan application form by clicking here or call us at 1-800-877-0883 to discuss your scenario.

Typically, you will only need to provide minimal documentation to obtain a loan from us. The vast majority of our borrowers are only required to fill out our one-page application and provide photo identification, the sales or assignment contract, scope of work with budget and entity formation documents if they are buying in a corporate name. You will also need to provide a hazard or builder’s risk insurance policy prior to closing.

If you have a low credit score, Restoration Capital may still fund your loan. Our primary funding criteria is based on equity in the real estate and your “exit strategy.” Credit scores are not a factor for approval. While we pull a credit report for each new borrower, we do not place a significant value on the trade lines or credit scores. We do, however, review the “Public Records” section to make sure there are no open judgments, liens, and/or bankruptcies.

That being said, a more in-depth review of your credit report will depend on your exit strategy. For instance, if you have found a great deal on a property from a distressed seller, and you intend to merely “flip” the property and all you need is short-term capital to carry you until you re-sell the property, credit scores are not that relevant. If, however, you intend to rehab the property and carry it as a rental, then you will need to refinance out of our loan. In such a case, we will take a closer look at your credit to confirm that you have the ability to refinance the loan before risking capital in the deal.

Yes. If your real estate transaction requires a lending pre-approval letter, we can provide that to you. If your request comes in before 5 PM, you can count on receiving it the same day it is requested.

No. State and Federal laws have strict disclosure requirements for consumer mortgage loans. Restoration Capital does not lend on primary, owner-occupied residences. Our loans are for investment and/or business purposes only.

Judgments and liens that appear on your title must be paid off at closing but, after payment of these items, you may use any additional equity in your property to get cash at closing up to the “loan-to-value” limits.

For instance, if you have a property valued at $100,000.00, and owe $30,000.00 in tax liens, and we approve a loan for 65% of the value of your property, then you will be able to take an additional $35,000.00 at closing for your own use, less any applicable closing costs and lender fees. As a general rule of thumb, however, we like to know where our loan proceeds are going.

We look at sold comparables, DOM (days on market) and active listings to help us figure out value. Our target price range is a 180-day sales price.

Restoration Capital loves to fund trustee sale purchases. We fund so many that most trustees in the region smile when they learn that Restoration Capital is funding the deal. Once an investor is the winning bidder of a property, they should submit a loan application immediately. This allows us to begin the analysis of your project so once the deed has been prepared and title is clear, we can fund immediately.

Our average closing is 5 to 7 business days. However, if we have the necessary documentation in place, we can close in as little as 2 days. Each transaction is handled on a case-by-case scenario. However, in an emergency situation such as foreclosure, we have the ability to have our third-party venders speed up the process to accommodate you and we have been known to put deals together with a same day close.

Because we lend on ARV, verification of the construction listed on the schedule of work is required. The process is as follows:

1. Draw requests are made for reimbursement of work detailed on the schedule.
2. Inspection of completed repairs is ordered and a title bring-down may be required.
3. A Restoration Capital inspector verifies the work has been completed.
4. Restoration Capital issues funds typically via an ACH payment directly to the Borrower’s bank account.

No, you can payoff the loan at anytime without incurring any additional fees.

Usually yes. Although there are times when we will not allow secondary liens, most times we don’t worry about where you come up with the remaining money to buy the property, whether from a relative, a seller held promissory note, or business partner. Just let us know you are planning on obtaining financing from another source up-front – no one likes surprises in the world of finance!

There is no limit on the number of properties; however we generally will not allow the total amount of loans to exceed $1 million at any given time. Exceptions may be made on a case-by-case basis.

Not always. We determine value in several different ways depending on the availability of information and ease of valuation: 1) internal valuation conducted by our underwriting team 2) comparative market analysis (CMA) from a contracted real estate agent; and/or 3) appraisal from a licensed appraiser. You will be charged up-front for our valuation of the property and we will obtain the type of appraisal that best allows us to determine value. These fees are non refundable.

With a cash-out refinance, you can always roll the closing costs into the loan. On purchases, however, occasionally we will allow you to roll the points into the loan. However, most other title and lender fees, or other closing costs, will have to be paid by you at closing.

Both. If a property does not need repairs, we will lend up to 70% of the “as is” value. If property needs repairs, we will lend up to 70% of ARV (after repair value).