Ineligibility

See ineligibility criteria below.

 

  • Guarantor

    • Rehabs

      • Median credit score below 600 (3+ rehabs completed)

      • Median credit score below 680 (<3 rehabs completed)

      • Derogatory credit events (e.g. BK, FC, SS, DIL) within the past 48 months

      • Plans for major/complex rehab (e.g. foundation repair, adding square footage, changing property type) without similar prior experience

    • Rentals

      • Median credit score below 660

      • Derogatory credit events (e.g. BK, FC, SS, DIL) within the past 24 months

      • Indications of late payments on payoff statement (for refinances)

    • Ground Up Construction (GUC)

      • Median credit score below 650

      • Fewer than three owned and completed projects during the last 36 months

      • Bankruptcy within the past 24 months

      • Foreclosure, short sale or deed in lieu within the past 48 months

    • All

      • Felony convictions involving fraud, embezzlement, forgery, or any other financial related crimes

      • Late mortgage payment on credit report within the past 36 months

      • 10 or more judgments and/or liens in the last 3 years, or current liens in excess of $250,000

      • Religious entity, land trust or any revocable trust

        • An irrevocable trust may be allowed provided that all beneficiaries are guarantors

  • Property

    • Occupied by borrower/owners of the borrowing entity and/or family/employees/affiliates of the borrower/owners

    • Properties in AK, AZ, CA, ID, MI, MN, NC, ND, NE, NJ, NV, NY, OR, PA, RI, SD, TN, UT, VA or VT

    • Properties which are modular homes, rural, mobile/manufactured homes, condo-hotels, timeshares, boarding houses, Single Room Occupancy (SROs), cooperatives, current/former healthcare facilities (such as nursing homes and assisted living facilities), raw land, working farms or ranches

    • Best and most appropriate comparable properties more than 1 mile from the subject property

    • DSCR below 1.20 (for rental loans)

    • Areas where more than 10% of other properties within a 2-block radius are either clearly vacant, abandoned and/or boarded-up

    • Single family homes less than 700 square feet

    • Condos less than 500 square feet

    • 2-4 units with less than 500 square feet per unit

    • Properties which are not in compliance with local zoning regulations

    • Properties with atypical physical features for the neighborhood

    • Properties with known adverse environmental conditions

    • Properties subject to purchase options

    • Properties with underground oil tanks

    • Low profit margin when payoff plan is property sale

    • Refinance of rental property that is not leased with 1-3 year term(s)

    • Refinance with heavy rehab plans for less experienced borrowers

      • Heavy, meaning adding 750 square feet, conversions, and/or budgets exceeding the AIV

    • Properties located in a zip codes with last twelve month median home price decline greater than 5%

    • Properties where at least one wall does not remain standing throughout the construction process and into the finished property (rehabs only)

    • Ground-up construction projects which are not yet “weather tight” (rehabs only)