Straightanswers.
Five hundred of the most-asked questions in real estate and business funding — answered the way we would answer them on a call. Search by keyword, browse by section, or jump tabs.
Eligibility & Borrower Profile
Active real estate investors, fix-and-flippers, BRRRR operators, builders, and commercial buyers. Business-purpose only — no consumer mortgages.
Most bridge and fix-and-flip programs start at 620 FICO. DSCR rentals start at 660. Lower scores can sometimes be offset by experience or larger down payments.
No, but first-time flippers will see slightly tighter leverage and may need higher reserves. Two or more completed projects unlock our best terms.
Yes — in fact, we strongly prefer it. The LLC is the borrower; you sign a personal guarantee.
Yes, on most programs. We need a U.S. entity, ITIN, and verifiable identity documentation.
Yes — revocable land trusts and irrevocable business trusts are acceptable borrowers.
Yes. You qualify as an investor as long as the property is non-owner-occupied.
Yes. All partners on the LLC will be underwritten and provide personal guarantees.
We can sometimes work with a Chapter 7 discharged 4+ years ago. Active or recent bankruptcies are usually a hard no.
Most asset-based programs do not. DSCR loans require a basic 4506-C authorization.
No portfolio cap. Each new loan is underwritten independently.
Yes — we use the highest middle FICO of all guarantors when at least one has the required score.
No. Citizens, permanent residents, and foreign nationals are all eligible on most programs.
Nationwide with limited exceptions. Submit your deal and we will confirm before issuing terms.
All borrowers must be 18+. There is no upper age limit.
Yes, on smaller-dollar bridge and fix-and-flip deals. Plan on slightly higher equity contribution.
No — title and the borrower must match. The LLC must take title at closing.
Up to four. Adding more passes through a review of every guarantor's credit and assets.
For most programs, 3–6 months of payment reserves plus rehab funds on construction loans.
We do a soft pull at pre-approval. A hard tri-merge happens when you accept the term sheet.
Yes — portfolio loans cover 5+ rentals under a single note with a single closing.
Yes. Our asset-based programs do not require income documentation.
Active mortgage delinquencies on your residence are usually a hard stop until cured.
Yes, but we may require the divorce decree or a signed quitclaim to clarify rights to collateral.
Yes — cash-out refinances up to 75% LTV on most programs.
Usually no, unless approved in writing before closing and on commercial deals only.
Yes — self-directed IRA LLCs and Solo 401(k)s can borrow on non-recourse terms (slightly tighter leverage).
No. Out-of-state investors are common and welcomed.
Not for asset-based programs. DSCR rental loans look at the property's DSCR, not your personal DTI.
Existing leases help. For vacant units we use market rent supported by appraisal Form 1007.
Fix & Flip Loans
Up to 90% of purchase price plus 100% of rehab, with total not exceeding 75% of the after-repair value (ARV).
An independent appraiser provides both as-is and ARV opinions based on the scope of work you submit.
No — rehab funds are held in a draw account and reimbursed after each phase is inspected.
Most projects use 3–5 draws. Larger or more complex rehabs can be split into more milestones.
Typically 24–72 hours from inspection request to wire, when documentation is complete.
Yes, usually a flat $150–$250 per draw to cover the inspection and processing.
Most fix-and-flip notes are 12 months, extendable by 3–6 months for a small fee.
Yes — interest only on the outstanding balance, with the principal due at exit.
No — interest accrues only on the funded balance, sometimes called 'dutch interest' if disclosed otherwise.
Yes. Heavy rehabs (gut jobs, additions, structural work) are subject to experience and a scope review.
Not always. Smaller projects can use the borrower as owner-builder if experienced.
Most lenders cap the floor at $75K–$100K. Below that, fees crush economics.
Yes — delayed financing lets you pull cash out within 6 months at lower documentation.
Typically no second liens, but a seller-held note can be considered case-by-case if subordinated.
Submit a change-order request. We can sometimes increase the rehab holdback if ARV supports it.
Talk to us early. Options include extensions, refi to a DSCR exit, or selling as-is.
Most programs require a minimum 3–6 months of interest. After that, no prepayment penalty.
Yes — disclosed assignments are fine. The assignment fee shows on the HUD.
No — closing costs and broker fees come from your own funds at closing.
7–14 days from clean diligence and title. Tighter timelines possible on repeat borrowers.
Yes — structural, plumbing, electrical, and HVAC work require pulled permits. Cosmetic work does not.
Yes — many borrowers exit fix-and-flip into our 30-year DSCR rental program if the deal cash-flows.
Yes — warrantable and many non-warrantable condos. HOA review applies.
Yes, up to ~2 commercial units in a primarily residential building, with stricter underwriting.
Yes — a line-item scope and budget signed by your GC or yourself.
Yes for cosmetic items. Trades work must be licensed unless permitted as owner-builder.
Yes, with extra scope review and proof of any state/local historic-board requirements.
Yes, with required flood insurance binder at closing.
Options: bring more cash, renegotiate purchase, dispute with comps, or walk away.
No — you only pay the extension fee if you choose to use the extra time.
Bridge Loans
Short-term financing (3–24 months) used to acquire, reposition, or hold a property until a permanent loan or sale takes it out.
Up to 75–80% LTV on stabilized assets. Heavy value-add deals are typically capped at 70%.
7–10 business days on a clean file. Same-week closings happen on repeat borrowers.
No — bridges are also used for fast acquisitions, 1031 exchanges, and partner buyouts on perfectly clean assets.
12 months is most common, with 6–12 month extension options.
Yes — 5+ unit multi-family is one of our core bridge programs.
Currently mid–high single digits to low teens depending on asset, leverage, and term.
Most bridges require a minimum 3 months of interest. After that, no prepay penalty.
Yes — a credible refinance or sale plan documented before closing.
Yes — many bridge loans include a renovation/CapEx holdback for unit turns or common-area work.
Sometimes via cross-collateralization. Talk to us early if you want to combine deals.
Yes when it makes sense — typically to combine equity from one property to acquire another.
Yes — vacant, partially occupied, or post-fire/flood properties are all eligible.
Up to $10M on a single deal. Larger deals require additional underwriting.
Entitled land with a credible exit only. Raw land is generally not eligible.
Yes — full personal recourse on most programs, non-recourse available case-by-case.
Yes — flagged limited-service hotels are eligible with experienced operators.
Monthly, in arrears. Some programs offer prepaid interest at closing for a rate discount.
Yes if redemption is possible and the borrower has clean equity. Auction purchases can use transactional funding instead.
Extensions are usually available with a fee. Default is the last resort — talk to us early.
Yes — interest reserves can be held back at closing to cover monthly payments during the term.
Yes, up to 50% commercial component on most programs.
Generally no. Bridges sit in first lien position.
Most programs floor at $200K. Below that, fees overwhelm the economics.
Yes — institutional-grade parks with metered utilities, on case-by-case basis.
DSCR Rental Loans
A 30-year rental loan that qualifies on the property's Debt Service Coverage Ratio (rent ÷ PITIA), not the borrower's personal income.
Most programs require a DSCR of 1.00 or higher. Some allow as low as 0.75 with a price hit.
Most programs start at 660 FICO. The best pricing starts at 720+.
Purchase: up to 80%. Rate-and-term refi: up to 80%. Cash-out: up to 75%.
Yes, most are. ARMs and interest-only options are also available.
Most DSCR loans have a step-down prepayment penalty (e.g., 5/4/3/2/1) — buy-down options available.
Yes — typically a 10-year IO period before amortizing for the remaining 20 years.
Yes — title and borrower in an LLC with a personal guarantee is standard.
Yes — DSCR calculated on a 12-month AirDNA projection or trailing T-12 occupancy/rent.
Yes, with extra leasing documentation and proof of municipal compliance.
1–4 unit residential, condos, townhomes, planned-unit developments, and small multifamily up to 10 units.
Yes — once the unit has a Certificate of Occupancy and is leased or rent-ready.
Possible on a clean file with appraisal already in hand. Typical timeline is 25–35 days.
Most programs require 3–6 months of seasoning. Delayed-financing exceptions exist for paid-cash purchases.
Not for income — only a 4506-C authorization is signed at closing for fraud prevention.
No. Many of our borrowers have 20+ DSCR loans across multiple lenders.
Yes — market rent from the Form 1007 supports the DSCR calculation.
Some are assumable with lender approval and a 1–2% fee. Confirm at term-sheet stage.
Yes — 5+ properties on a single note via our portfolio program (one closing, one payment).
Yes. Housing-assistance rent is treated as market rent in the DSCR.
Yes — common consolidation play. Single closing, blended rate, individual or blanket release.
ID, entity docs, 2 months of bank statements, lease(s) or appraised market rent, and insurance binder.
Yes, on most DSCR programs with a slight LTV/rate adjustment.
Yes — 30+ day corporate leases count as long-term rentals.
Most are recourse via the personal guarantee. Non-recourse available case-by-case on larger loans.
Tax and insurance escrows are required at 80% LTV, optional below.
Yes — typical lock periods are 30–60 days, longer locks available for a small fee.
Yes. Estoppel certificates and lease assignments are part of standard closing.
Most programs floor at $75K. Some go to $100K minimum.
Yes — for vacant units we use the appraiser's Form 1007 market-rent opinion.
Ground-Up Construction
Yes — single-family, multifamily, and small commercial. Experience required for larger projects.
Up to 85% loan-to-cost (land + hard + soft costs) and 75% loan-to-completed-value.
Yes — land can be acquired with the same construction loan or pledged as equity if already owned.
12–24 months interest-only, with 6-month extension options.
Phased draws tied to milestones (foundation, framing, dry-in, finishes) with inspection before each release.
Yes for ground-up. The GC must hold required state and local licenses and provide proof of insurance.
Sometimes, with documented experience and required state owner-builder permits.
Not typically. Spec builds are funded, but pre-sales can improve leverage.
Yes — teardown of existing structure, foundation, and new build are all common.
Yes — with documentation of factory progress and on-site installation milestones.
Yes — both attached and detached ADUs on existing residential parcels.
Yes — utilities, grading, and site prep can be rolled into the construction loan.
A reasonable developer/project management fee is allowed (typically 3–5% of hard costs).
Yes — typically 10% contingency for SFR and 5–7% for multifamily, held in the draw account.
Yes — soft costs (design, permits, fees, marketing) are eligible loan proceeds.
Usually 7–14 days from closing once permits are issued and the GC's first milestone is reached.
Yes — both creating new condos and converting existing buildings to condos.
Yes for new on-frame placements with permanent foundations meeting HUD code.
Yes — most programs include 6-month extension options with a small fee.
Yes — partial and final lien waivers from major subs are required at each draw.
Yes — builder's risk + GL is required from groundbreaking through completion.
Yes — and you can exit directly into our DSCR rental program at completion.
Yes if they are permanent dwellings with foundation and full utility hookups.
Yes — up to 6 stories on case-by-case basis with experienced sponsors.
Replace and notify us. We can re-bid remaining scope and bring on a new licensed GC subject to approval.
Commercial Real Estate
Multifamily, retail, office, industrial, mixed-use, self-storage, hotels, and special-purpose case-by-case.
Up to $10M on a single deal, larger via syndicated terms.
Standard structure is recourse. Non-recourse available on stabilized assets above a certain size.
Yes — owner-user commercial loans are available with stricter underwriting (51% occupancy minimum).
Yes — we pay off seller-held notes regularly. Provide the existing payoff statement.
Yes — NNN single-tenant or multi-tenant retail. Lease term, tenant credit, and remaining lease are key metrics.
We can refer to capital markets partners for non-recourse CMBS on stabilized assets above $2M.
Bridge: high-single to low-double digits. Permanent stabilized: SOFR + spread or fixed at market.
Yes — strong asset class. Multi-tenant medical office is institutional-grade.
Yes — purchase, refinance, and value-add. Occupancy and revenue-per-square-foot drive underwriting.
Yes — special-purpose commercial with deeper environmental review.
Yes — flagged limited-service and select-service hotels with experienced operators.
We refer SBA programs to partner banks. Phoenix retains the bridge/conventional segment.
Yes — typically 1.20x or higher on stabilized assets, lower temporarily acceptable on value-add.
Yes — common on bridge and value-add deals to maximize equity efficiency.
Yes — surface lots and structures in markets with parking demand.
Phase I ESA required on most commercial. Phase II only if Phase I flags concerns.
Yes — up to 70% LTV on stabilized assets, lower on value-add.
Yes when the leased fee is held by a credit landlord and 25+ years remain on the lease.
Case-by-case. Liquidity reserves and adaptive-reuse plans help.
Yes on most commercial. The PCA quantifies immediate and long-term capital needs.
Yes — DSCR-style underwriting using a trailing T-3 rent roll.
Yes — purpose-built student housing near major universities is a strong asset class.
Yes — institutional-grade parks with metered utilities and tenant-owned homes.
Yes — last-mile industrial is one of the strongest current asset classes.
Rates, Fees & Leverage
Bridge: high-single to low-double digits. DSCR rentals: priced off the agency-rental market. Final pricing depends on program, leverage, credit, and asset.
Typically 1.5%–3% of the loan amount, paid at closing.
Sometimes — especially on repeat business or larger loans. Best leverage means paying market points.
Origination, underwriting/processing, third-party costs (appraisal, title, legal, insurance), and where applicable, extension or exit fees.
No application fee. We may require a diligence deposit on larger transactions to cover third-party reports.
Refundability is spelled out in your term sheet. Many are refunded at closing or upon decline if no third-party work has been ordered.
Bridge purchase: 75–80% LTV. Fix-and-flip: 75% ARV. DSCR purchase: 80% LTV. Construction: 75% LTC.
Up to 90% LTC on fix-and-flip; 85% LTC on ground-up construction.
Some bridge programs have a small exit fee (e.g., 1%) in lieu of higher points up front.
Most bridges have a minimum 3–6 months of interest. Pay off earlier and you still owe the minimum.
Yes — paying additional points up front reduces the note rate. Common on DSCR rentals.
Bridge: usually fixed. DSCR rentals: 30-year fixed standard, ARMs available. Commercial: SOFR + spread on most floaters.
On purchase, closing costs typically come from borrower funds. Refis can sometimes roll closing costs into the loan if LTV supports it.
Standard 30-day rate lock is free on DSCR. Longer locks have a fee.
Some loans have a small monthly servicing or sub-servicing fee disclosed in the term sheet.
Yes — lower LTV/LTC usually buys 25–75 bps off the rate.
Monthly, in arrears, on the outstanding balance. Per-diem at funding and payoff.
Yes — submit your deal and we issue a term sheet at no cost within 48 hours.
No — those are jurisdictional third-party costs paid at closing.
We will review side-by-side and tell you honestly if we can beat it. We do not chase unsustainable terms.
Often yes (as amortized loan costs on rental property). Consult your CPA.
Yes — typically 0.5%–1% of the loan amount per 3–6 month extension, disclosed up front.
Most notes carry a default rate of base + 4–6%. Paid in arrears on past-due balances.
No — each construction draw inspection is a flat $150–$250 paid to the inspector.
No — those are itemized closing costs paid through escrow/title.
Documents & Underwriting
Executed contract (or refi setup), borrower entity docs, ID, two months of bank statements, basic property/business overview, and an experience summary.
Not for most asset-based programs. DSCR signs a 4506-C for fraud prevention only.
Not on asset-based programs. Some commercial loans verify income on the guarantor.
A tri-merge from Equifax, Experian, and TransUnion. Middle score is what counts.
120 days. After that we re-pull at closing.
Yes for business funding programs. Real estate loans rely on the personal guarantor's credit.
An item we need cleared before final approval — usually a missing document or a clarification.
5–15 on a clean file. Most clear in a single document upload.
Yes — all FDIC-insured U.S. banks are acceptable.
Yes — with a signed gift letter and proof of donor's ability.
Yes — sourced HELOC funds are acceptable as long as payments are factored into reserves.
Yes — coordinate your QI early. We align wire instructions with the exchange.
Yes when the borrowing entity is operational — most recent two months.
Fine — many borrowers form a fresh LLC per deal. The personal guarantor anchors underwriting.
Yes — public records and litigation searches are part of standard underwriting.
Yes — submit comparables and a written rebuttal. The appraiser reviews and either holds or revises.
Phoenix orders through an approved appraisal management company (AMC) to maintain compliance.
Typically 5–10 business days from order to final report.
Yes for most programs — DSCR and construction always; some bridge can be exterior-only at higher LTVs.
Flood insurance is required at closing if property is in a FEMA-designated flood zone.
Yes — lender's title insurance is required on every loan.
We require a current survey on most commercial; residential typically uses prior surveys with an affidavit.
Initial review within 24 hours of complete file. Conditional approval typically 3–5 business days after.
Yes — DocuSign or equivalent for most documents. Recorded items require notary.
Yes — RON (Remote Online Notarization) and wet-sign mail-away closings are both supported state-permitting.
Closing Process
Bridge/fix-and-flip: 7–14 days. DSCR rentals: 21–30 days. Ground-up: 30–60 days.
Both — escrow in escrow states, attorney closing in attorney states.
Yes if they're licensed in the relevant jurisdiction and on our approved list. We can pre-approve quickly.
Yes — we have national title partners who close quickly and accurately.
Hazard + liability on residential; builder's risk on construction; flood if in FEMA zone; loss-of-rents on DSCR rentals.
Yes — always required at closing.
Once final approval and title commitment are complete — usually 1–2 days before funding.
Into escrow/closing attorney's IOLTA, then disbursed to seller/payoff/borrower per the HUD-1 / CD.
Same day or next business day in most jurisdictions.
Generally no — county recording is closed weekends. RON helps for signing, but recording happens Monday.
Yes on most rental loans at 80% LTV. Optional below 80%. Bridge/fix-and-flip do not escrow.
No — mail-away and RON closings are common.
Yes — we send the closing package 24 hours before signing for review.
Borrower pays. On refis, some costs can roll into the loan.
Yes — seller credits up to typical caps are allowed on most programs.
Yes — provide a HUD-1 from the original cash purchase and we can refi within 6 months.
Title will surface it. We require it cleared or paid at closing.
Generally no — same-day closing is required. Some 1031 exchanges have specific staged structures.
Both — you sign for the LLC as an authorized member and individually for the personal guarantee.
Yes — strongly encouraged. We accommodate reasonable revisions within our policy.
Repayment & Exit Strategy
Typically the first of the second month after closing. Per-diem interest covers the gap.
ACH from your bank, online portal, or check by mail. ACH is the most reliable.
Yes — subject to any minimum interest or prepayment penalty disclosed in your note.
Late fee at 15 days, default rate at 30 days, and notice of default at 60 days. Communicate early — we work with borrowers.
Yes — many fix-and-flip and bridge borrowers exit into our DSCR rental program.
Some DSCR rentals are assumable with a fee and lender approval. Bridge loans are usually not assumable.
Sell, pay off, and you are done. Per-diem interest plus any minimum payment applies.
Most bridge and construction loans have 3–6 month extension options for a small fee. Request in writing 30+ days before maturity.
Typically base rate + 4–6%, accruing only on past-due amounts.
Call us early. Options include extension, sale, or refi into another program. Default is always the last resort.
Yes — we issue payoff letters via email within 1 business day of request.
Same-day wire upon receipt of funds in escrow/title. Lien release recorded within 30 days.
Generally no on business-purpose loans. We can confirm for your program in writing.
It terminates upon full satisfaction of the loan. We issue a guaranty release upon request.
Yes — we issue payoff letters within 1 business day. Plan ahead to allow wire-cutoff time.
Send it to us.Real reply, fast.
We respond personally — usually the same business day.