Property Type: One to four family residential properties, mixed-use and small commercial properties which are acquired for business or commercial purposes.
Stonehedge Funding does not finance owner-occupied residential properties.
Geographic Area: Southeastern Pennsylvania and surrounding areas.
Credit: Good credit is required.
Loan Amount: $10,000 – $350,000 with the typical loan amount between $25,000 and $75,000.
Rehabilitation Funds: Draws advanced in stages during the renovation process.
Term: 12 – 60 months.
Interest Rate and Fees: Negotiable, subject to market conditions, credit, experience and strength of transaction.
Loan Structure: Interest only payable monthly with principal due at maturity.
Ratios: 70 – 75% loan to value ratio.
Lien Position and Collateral: First mortgage positions on acquired real estate.
Types of Borrowers: Individuals and all types of business entities including general partnerships, limited partnerships, limited liability companies and corporations.
Guaranty: Personal guaranties required.
Underwriting Guidelines: Credit Reports – tri-merged and scored reports ordered by lender.
Property Inspections – performed by lender prior to closing and release of renovation funds.
Appraisals – drive-by appraisals required.
Flood Searches – generally not required unless the property is near a flood zone.
Title Insurance – required.
Property Insurance – always required with standard mortgagee clause.
Documentation: Standard commercial mortgage loan documentation required.
Timing: Closings generally within 10 – 30 days after package submission.