Loan Terms & Conditions
Points and Interest Rates
Investor Rehab Loan Program: EDC
offers two pricing options for the borrower to
choose from on our investor rehab loans.
Borrowers may choose from two rate programs
on the loan application:
-
6 Points and 15% Interest (No Monthly
Payments!) (Not available in the state of
Florida)
-
8 Points and 10% Interest (No Monthly
Payments!)
Please note: EDC does not charge application
fees, inspection fees, underwriting fees, or any
other "junk fees" that other lenders often hide
from the borrower.
Duration of Loans
The time frame of the loan is for a maximum of
six (6) months. The borrower must have the
property refinanced and the loan repaid by the
six (6) month deadline.
Loan Amount
Investor Rehab Loans will be 100% of the
purchase price and 100% of the repair funds so
long as the LTV does not exceed 73% of the ARV
(after repair value). EDC has no minimum or
maximum loan amounts. For loan amounts less than
$55,000 minimum fees will apply.
LTV
The maximum loan to value (LTV) EDC will lend is
73% LTV, which is based on the
after-repaired-value (ARV) of the property. The
LTV calculation will include the purchase price,
construction costs, purchase closing costs,
points, and an interest reserve for the term of
the loan. For loan amounts over $375,000, the
maximum LTV EDC will fund is 68% LTV and EDC
reserves the right to request a down payment at
closing from the borrower.
Appraisals
All appraisals will be ordered by EDC upon
receipt of the loan application. Borrower
provided appraisals will not be accepted. The
appraiser will request the full scope of work
and construction costs from the borrower
directly. EDC will not fund any loans with less
than a $50,000 ARV. For properties with an ARV
between $50,000 and $60,000, the LTV will be
capped at 65%.
Closing Attorney and Settlement
Offices
All Hampton Roads and Richmond area purchase
closings must take place at the office of
Richard Epps, PC (Terry Brown - Phone
757.498.9600 ext. 321, Fax 757.498.1241). For
all properties outside of Hampton Roads and
Richmond, an EDC approved settlement office must
serve as the closing agent.
Payments and Other Responsibilities
No payments are required during the six month
loan term. If EDC agrees with the borrower to
extend the loan after the 6 month loan term
period has elapsed, the borrower will be
responsible for making an extension fee payment
and monthly interest payments (including
penalties). The borrower will also be
responsible for ordering builders risk and
general liability insurance on every property
through Flagship Insurance prior to the purchase
closing, turning on all necessary utilities for
construction, carrying out all necessary
construction, obtaining any necessary permits,
and staying current on all property taxes levied
by the city in which the property is located.
Please Note:
It is the borrowers responsibility to maintain
an email account and keep EDC informed of any
email and/or telephone changes. Failure to keep
EDC informed of these changes will result in
non-communication with EDC.
