What Is NWPL's Loan Process?
We want every loan we do to be a win for both the investor and the rehabber. Therefore, we’ve streamlined our process and make every effort to provide all the help we can along the way. If you have any questions, don’t hesitate to give us a call. We’re always happy to chat anything through.
Do You Have Your Insurance Locked Down:
As with any traditional lender, basic fire insurance is required to protect the borrower and the lender's interest in the dwelling. We require that the borrower find and manage your own insurance policy. A standard policy is all that is required but it must be for no less than the size of the loan and we suggest it have a minimum liability limit of $500K for any fix and flip loan. We will provide an insurance binder request to submit to your insurance company that will allow us to ensure the policy remains in place for the duration of the loan.
Decide If Our Maximum Loan to Value’s Fit Your Needs:
- 80% Max LTV of the purchase price on a fix and flip
- 75% or lower LTV of the purchase of an investment property
- 70% or lower LTV of the refinance of an investment property
- 50% LTV of the purchase or refinance of bare land
- 100% LTV loans available with additional collateral / cross collateralization of other investment properties.
Consider Our Average Loan Duration:
Most of our loans conclude within 6 to 9 months and we most commonly write our loans for 1 year with a free extension if the borrower is performing on the loan. NWPL’s general terms are 1-month up to 2-years.
See If Any Additional Rates & Terms May Affect you:
Interest Rate: 12% to 14% - dependent on property location and LTV
Maturity: 1-month to 2-years
Doc Fee: $595
Loan Fee: 3 to 4 points
Loan amount: $50K to $1M
Monthly Payment: Interest Only
Underwriting Fee: None
Closing Costs: Paid by Borrower
Appraisal: Not Required
Pre-payment Penalty: None
Closing Time: Within 5–10 business days
A hard money loan is collateralized by non-owner occupied real estate. In NWPL requires a first position lien on any property that is securing one of our loans. In some cases where equity is limited, additional collateral or cross collateralization can be considered. In these cases, 2nd lien position will be considered. NWPL secures this collateral with a Promissory Note, Loan agreement, Trust deed, and an extended title policy.
Apply for a loan:
Congrats if you’ve made it this far! We’re happy to have you have considered us as your fix-and-flip lender or for your rehab financing.
Click HERE to apply. We generally with give you a thumbs up or down in 24-hours.
Once you are approved we try to close and fund all loans within 5 to 10 business days.
Pay your Bill:
At NWPL, there are several ways clients can pay for our services. Please note that taxes, insurance, and principal payments are not included in your monthly payments. You can pay your bill by:
- Checks – Please make your check out to NWPL, NW Private Lending, or Northwest Private Lending. You can mail it to our office at: 5335 Meadows Road Suite 380, Lake Oswego, 97035
- Bill Pay – Most of our customers set up an automatic bill pay from their banks. Please just include your name and the loan number and we will take care of the rest.
- Credit Card – While not preferred, we do accept credit card payments, but require the borrower to pick up the 3% service change for Visa and Mastercard or the 4% for AMEX.
Pay off your Loan:
In most cases, borrowers are selling or refinancing the property and our loan will be paid off in escrow. In that case your escrow agent will contact our office to request a payoff amount. If you are paying off you loan outside of escrow, you can call or email our team to request a payoff amount.
Close the Loan. Similar to a traditional loan, NWPL always closes our loans through a 3rd party escrow agent/title company. Escrow will make sure all liens are removed from the property, record the trust deed, release funds to the borrower, and will support the signing of all paperwork. We will generally select an agent based on proximity to the client or collateral property or will work with whichever agent is already assigned to the transaction.
A Few Things You Don’t Need:
- There is no minimum FICO score requirement: While NWPL appreciates borrowers with good credit history, it is by no means a requirement. Let us know if you wish to have your FICO removed as part of our consideration of your loan.
- You do not need an appraisal to secure a loan: NWPL funds it own loans. Therefore, we make our own internal determination of the property value which will save the borrower both money and time.