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Loan Terms & Conditions

Contact Us

For more information about the EDC investor loan program, please contact one of our Loan Consultants:

• Questions about new loans?
  • Shawn Skiff
    757-460-9096 x113
    shawn@equitydevelopmentcorp.com
  • Mike Ioanou
    757-460-9096 x115
    mji@equitydevelopmentcorp.com
• Questions about a refinance or permanent lending options?
  • Ryan Lawrence
    757-460-9096 x114
    ryan@equitydevelopmentcorp.com
• General Questions? Please Fill out our E-mail form or call 757-460-9096.

Borrowers may choose from two rate programs:

• 6 Points and 15% Interest (No Monthly Payments!) (Not available in the state of Florida)
• 8 Points and 10% Interest (No Monthly Payments!)

Duration of Loans - 6 Months!
The time frame of the loan is for a maximum of six (6) months. The borrower must have the property refinanced and the loan repaid by the six (6) month deadline. The sooner your loan is paid off, the more money you save - the unused portion of your interest reserve can be refunded to you!

No Monthly Payments!
EDC builds in an interest reserve into your loan so that you have no monthly payments during the loan term. If EDC agrees with the borrower to extend the loan after the 6 month loan term period has elapsed, the borrower will be responsible for making monthly interest payments.

Loan Amounts
Investor Rehab Loans will be 100% of the purchase price and 100% of the repair funds so long as the LTV does not exceed 70% of the ARV (after repair value). EDC has no minimum or maximum loan amounts. For loan amounts less than $62,500 minimum fees will apply.

Loan to Value (LTV)
The maximum loan to value (LTV) EDC will lend is 70% LTV, which is based on the after-repaired-value (ARV) of the property. The LTV calculation will include the purchase price, construction costs, purchase closing costs, points, and an interest reserve for the term of the loan. For loan amounts over $375,000, the maximum LTV EDC will fund is 65% LTV and EDC reserves the right to request a downpayment at closing from the borrower.

Appraisals
All appraisals will be ordered by EDC upon receipt of the loan application and all financial documents (credit report, tax return, and bank statements) are approved. Borrower provided appraisals will not be accepted. The appraiser will request the full scope of work and construction costs from the borrower directly.

EDC will not fund any loans with less than a $50,000 ARV. For properties with an ARV between $50,000 and $60,000, the LTV will be capped at 65%.

All appraisals will be reviewed to ensure that properties cash flow based on the operating income statement. If a property does not cash flow, EDC will still proceed with funding the loan based on a reduced loan amount.

Builders Risk and General Liability Insurance
EDC has master builder's risk and general liability insurance policies provided by Hanover Insurance through Brown & Brown Flagship Group. All properties will be insured at closing and all insurance premiums will be included in the EDC loan amount.

Closing Attorney and Settlement Offices
All Hampton Roads and Richmond area purchase closings must take place at the office of Richard Epps, PC (Terry Brown - Phone 757.498.9600 ext. 321, Fax 757.498.1241). For all properties outside of Hampton Roads and Richmond, an EDC approved settlement office must serve as the closing agent.

Please Note:
It is the borrowers responsibility to maintain an email account and keep EDC informed of any email and/or telephone changes. Failure to keep EDC informed of these changes will result in non-communication with EDC.