Rental Property Loans
Rehab to Perm / Joe the InvestorNoble’s Rental Property Loans program is a two-step loan process utilized by investors to buy distressed residential real estate in need of repairs for long term rentals. It provides up to 100% of the purchase price, repair money and closing costs. After the property is repaired and leased, Noble assists in arranging a long-term traditional mortgage.
The loan amount is based on the after-repaired-value of the property. Typically, a combination loan is used to acquire residential property that conventional lenders will not consider due to the condition. These loans typically close in 10 business days, and the investor must qualify for long-term financing.
Property Types:
1-4 single-family properties
Markets:
Houston, Austin, San Antonio and Dallas/Fort Worth, Texas
Loan Amounts:
$50K-$400K
Amortization:
Interest-Only
Term:
6 months
Rate:
TBD
Fees:
TBD
LTV:
Up to 75% of the “after-repaired” value
LTC:
Up to 100%
Qualifying:
Must be able to qualify for long-term financing
Recourse:
Yes
How do I know I won’t be stuck in the Hard Money Loan?
What is a rehab to perm loan?
A two loan process utilized by investors to buy distressed real estate, repair, lease and hold as long term rental properties. The loan amount is based on the after-repaired-value of the property
Why use hard money?
How do I know I won’t be stuck in the Hard Money Loan?
What is a hard money rehab combo loan?
What credit score is required to qualify?
Why use hard money?
Will Noble Mortgage also assist in arranging a conventional loan after the property is repaired and leased?
How long do I have to wait to refinance?
Can I use this program if I already own 4 properties?
Can I use the loan to buy and repair a property?
Yes. Noble Mortgage offers up to 100% financing for the purchase price, repairs, and closing costs provided it doesn’t exceed 75% of the ARV.
Will Noble Mortgage finance 2, 3 and 4-unit properties?
Yes, but we will lend up to 70% of the ARV on 2-4 unit properties.
How do I get a pre-approval letter?
Use the side bar to fill out the “How can we help you?” form; select the option “Information on your programs and get pre-qualified.” An email will be sent to you with the application as well as a list of items needed to get pre-qualified.
How do I submit a hard money rehab loan?
Provided we already have your financial information we would need the itemized repair budget and an executed contract.
When estimating my repair costs why do I have to include the full labor cost if I am doing the work myself or have friends & relatives who are going to help for free?
If something happens to you and Noble ends up with the property, your friends or your relatives won’t want to work for Noble Mortgage for free to finish the job.
Is there any up front money required and if so what is it for?
Yes. Noble Mortgage collects $500 to cover the costs of an appraisal and lender property inspection. Noble will order the appraisal at the borrower’s expense.
I already have an appraisal, why do you need another one by your designated appraisal firm?
It is one of Noble Mortgage’s ways of making sure that both you the investor and us the lender have a true value of the property.
How long does it take to close?
Typically around 10 business days.
Will I get all the money at once?
Noble Mortgage will fund up to 100% of the purchase price of the property at closing; however, the rehab funds will be held in reserve and disbursed on a draw schedule.
How does a draw schedule work?
As your contractor completes the project he is allowed to take draws on completed work after an inspection. We inspect the work and issue a check to you or your contractor.
Can I be my own contractor?
Yes, provided you have experience to complete the job.
How long does it take to receive a draw?
At Noble Mortgage we realize cash is king and you need it to keep your projects moving forward. We guarantee that we will issue repair/construction draws within 3 business days.
How many draws can I take and how much do they costs?
You can take as many draws as you wish and they cost $125-$150 depending on the location of the property.
