Frequently Asked Questions.
Common questions about Residential Capital Partners.
What is a hard money loan?
ResCap understands your business because our partners have flipped over 1,000 properties and are still in the business themselves. We fund loans up to 100% of 65% of ARV and will approve your loan in an expedient manner. We have rehab and lending experts on the ground in the markets we serve.
Do I need a property before I apply or can I be pre-approved before I find a property?
You can apply to be pre-approved based on your credit and financial statement with or without a property under contract.
How do I qualify for a ResCap loan?
Can I borrow from ResCap if I have never done a rehab before?
No. We look to establish new relationships with seasoned fix-and-flip professionals. If you have not yet done a flip, you might want to partner with someone that has and apply for funding together. Or, if you are an experienced contractor, give us a call to discuss your experience.
How much experience do I need to have to qualify for a ResCap loan?
ResCap requires proof that you have completed “a minimum of 1 – 3” successful fix-and-flip transactions or are working with an experienced partner / contractor.
Will I receive a Proof of Funds letter?
We will supply a Proof of Funds Letter once you have been pre-qualified by ResCap. There is NO COST to get pre-qualified.
Do I order the appraisal or does ResCap?
How long does it take to approve and close a loan?
The approval of a loan usually takes 1 to 2 business days. Once approved, all we need is a valid appraisal, clear title and evidence of insurance to close the loan. On average, a loan that is submitted can fund within 14 days.
What is interest rate and fees you’ll charge me?
The interest rate is 10%. ResCap charges a $700 appraisal and processing fee, a $1,000 document preparation fee and an origination fee of 3 points. The origination fee can be rolled into the loan.
What are points?
What does it mean to roll my points into my loan?
Will you charge me interest on the full note amount or the funded note amount?
We charge interest on the funded note amount. Unlike some other lenders, we will not charge interest on repair funds until they are drawn.
How much will you loan me on my property?
What is After Repaired Value (ARV)?
How does ResCap determine my loan amount?
What is the minimum and maximum I can borrow?
How does ResCap offer pre-approval to Borrowers?
What is the term of a ResCap loan?
How do I get a ResCap loan if I have a property under contract?
Simply go to our website and apply on-line.
What types of residences qualify for a ResCap loan?
Do you require inspections?
Do I need to purchase property insurance for this loan?
How quickly will I receive funds once my loan has been approved?
How does ResCap submit funds to me?
What is required before I request a draw payment?
After completing the work, submit your draw request and ResCap will send an inspector to the property to verify that the work has been done in a workman like manner.
Will ResCap run my credit?
Yes, but it is a “soft pull” that will not affect your credit score.
Do credit issues prevent a borrower from qualifying for a loan?
Do you need me to have an LLC set up before funding my loan?
ResCap will only make a loan to an LLC or other special purpose business entity (i.e.: partnership). If you do not have an established entity set up, you will need to set one up prior to us funding your loan.
Do I have to close my loan at a title company / attorney’s office?
What monies do I need to bring to closing?
Do I have to submit tax information and financial documents to be approved for my loan?
Are you in my local market?
ResCap has lending affiliates in North Carolina, South Carolina, Connecticut, Florida, Massachusetts, New Jersey, New York, Pennsylvania, and Texas. ResCap will be coming to Washington, DC, Virginia, Delaware, Illinois and Georgia soon.
Does ResCap offer construction financing on single-family housing?
ResCap does not do construction loans at this time.