REQUIREMENTS

iFund has straightforward requirements and underwriting criteria. We are risk-adverse lenders and our criteria have been developed to protect both our borrowers and ourselves. Our goals are to make safe loans where all parties can generate adequate return on investment.

Property Type:

• Property is non-owner occupied (no primary residences)
• Our team will review both residential and commercial

Parameters Purchase Loan:

• Must be 1st position or carefully evaluated 2nd position
• 65% maximum LTV
• LTV calculated from purchase price or actual value of property as determined by appraisal and/or Broker’s Price Opinion (BPO) ordered by us and paid for by the borrower at point of service. NOT the borrowers appraisal.

Purchase & Rehab Loan: 

• Same as above, plus the three following points below
• Must determine both current value (as-is) and After Repair Value (ARV).
• May lend 65% of ARV but only release 65% of as-is value at closing.
• Balance of loan to be placed into a rehab escrow account to be distributed in draws as rehab work is completed
• Borrower must have adequate cash reserves; e.g. ability to pay 6 months loan payments + utilities + 10% for unexpected repairs or expenses

Refinance Existing Property Loan: 

• Must be 1st position or carefully evaluated 2nd position
• May choose to pay off existing mortgage to make ours 1st position 65% maximum combined LTV
• Borrower must have exit strategy to sell or refinance the property to pay us off in the allotted time period
• We must know the borrowers planned use of funds
• If borrower has bad credit, consider requesting a co-signor with good credit to help in refinancing

Hazard Insurance & Title Insurance 

• Property must have hazard, fire (earthquake) or other typical insurance for at least the amount of the loan Require Lender’s Title Policy for at least the amount of the loan
• We will be named as loss payee on borrower insurance policy

Borrowers 

• Must have 2 exit strategies to cash us out within loan term:
• Sell property
• Refinance property, using if necessary a credit partner
• Borrower credit report and background check must be ok or have valid reasons for blemishes
• If the project is a major rehab borrower must have proof they have successfully completed such a project before