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Loan Terms & Conditions

Borrowers may choose from two rate programs on the loan application:

• 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
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.

Loan Amount
Investor Rehab Loans will be 100% of the purchase price and 100% of the repair funds so long as the LTV does not exceed 73% of the ARV (after repair value). EDC has no minimum or maximum loan amounts. For loan amounts less than $55,000 minimum fees will apply.

LTV
The maximum loan to value (LTV) EDC will lend is 73% 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 68% 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. 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%.

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.

Payments and Other Responsibilities
No payments are required during the six month 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 an extension fee payment and monthly interest payments (including penalties). The borrower will also be responsible for ordering builders risk and general liability insurance on every property through Flagship Insurance prior to the purchase closing, turning on all necessary utilities for construction, carrying out all necessary construction, obtaining any necessary permits, and staying current on all property taxes levied by the city in which the property is located.

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.