Loan Programs

TYPES OF REAL ESTATE I LEND ON

Single family homes
1 – 4 unit properties (up to 65% LTV)
Apartment buildings (up to $500,000 - 65% LTV)
Owner occupied purchases
Investor purchases & Investor re-finances
We do not offer 2nd position loans, land loans, “owner occupied” refinances

Formulas to Calculate Monthly Payments
& Total Cash Needed to Close

LOAN PROGRAMS and related COSTS

TYPICAL LOAN TERMS, FEES, & RATES: administrative fees plus points as stated below plus 3rd party closing costs:

6 month Interest Only - the greater of $2,000 or 4 points, 12% interest rate ( requires 4 month interest guarantee by borrower)
1 Year Interest Only - the greater of $3,000 or 6 points, 12% interest rate
14 Month Interest Only - the greater of $3,400 or 6.75 points, 12% interest rate (offered to get you over the one year hump for possible one year required seasoning for a re-finance).
2 Year Interest Only - the greater of $5,000 or 10 points, 12% interest rate
3 Year Interest Only - the greater of $6,250 or 12.5 points, 12% interest rate
5 Year Fully Amortized - principal and interest payments fully pays off your loan over 5 years, just like a car loan–the greater of $5,000 or 10 points, 12% interest rate
8 Year Fully Amortized - (must be loan amount of $75,000 or more) principal and interest payments fully pays off loan over 8 years, just like a car loan–12.5 points, 12.99% interest rate
5 Year Balloon - principal and interest payment based on a 10 year amortization – 12.5 points, 12.99% interest
LOWER LOAN FEES may be available with increased interest rate. This is done on a case by case basis.
RENOVATIONS INCLUDED Loan Program. Up to 70% of renovation costs can be rolled in to your loan on any of the loan programs above, whether investor or owner occupied. Please see the details in the RENOVATIONS INCLUDED loan program below. $375 additional fee.
20% DOWN EXCEPTION Loan Program considered for OWNER OCCUPIED purchases, if borrower, other than a short sale or foreclosure, has excellent established credit, good job history, and a low debt to income ratio (less than 45%) This is a 5 year loan term with a balloon payment at the end of 5 years. Monthly payments based on a 10 year amortization, interest rate of 12.99%, and the cost is 12.5 points.
ALTERNATIVE 20% DOWN Loan Program: up to 80% CLTV (20% cash down payment, 60% first position BRAD LOAN, 20% 2nd mortgage or 2nd position seller carry-back financing). Minimum 20% cash down by Borrower. BRAD LOAN of up to a maximum of 60% of sale price or appraisal (whichever is less). The difference can be carried by seller for a term at least the same length of time as the selected BRAD LOAN. Seller can also pay up to 50% of closing costs. Seller 2nd cannot have negative amortization. The 60% BRAD LOAN must be an amortized loan per one of the loan programs above.
Need a loan program not listed? Let me customize a loan for you.

“RENOVATIONS INCLUDED” loan program details $375: Roll RENOVATION COSTS in to your PURCHASE LOAN based on renovation cost and ARV (After Repair Value) appraisal. Available on any loan program above. These loans are done on a case by case basis. Below is an example to give you an idea of how it works.

We fund up to 70% of total of acquisition and estimated renovation costs
We release up to 70% of purchase price at Close of Escrow
We release remaining loan proceeds to finance renovations at completion of renovations (to insure Lender they get completed)

Example:
$60,000 purchase price + $30,000 estimated renovation cost = $90,000 total acquisition cost .
70% of $90,000 = loan amount of $63,000

Details of the above example:

$27,000 down ($30% of $90,000)
+ $4,700 cash needed for estimated loan fees for 6 month loan
+ $2,200 estimated 3rd party closing costs
$33,900 Total Cash out of pocket from Borrower to COE in this example.

$63,000 BRAD LOAN is fully funded to title at close of escrow.
$42,000 70% of purchase price released at close of escrow to cover 70% of purchase price
$21,000 remaining loan proceeds HOLD-BACK in escrow and RELEASED to borrower upon COMPLETION of renovations.

CALCULATE TOTAL CASH NEEDED to complete your purchase including closing costs:

$ Down Payment - at least 30% (or that required) of purchase price
$ Loan administrative fees $1800
$ for points (depends on the Loan Program)
$ for 3rd party closing costs (estimate of $2300 to $3500 depending on loan size)

1 + 2 + 3 + 4 above = $ TOTAL AMOUNT out of pocket needed at closing.

CALCULATE MONTHLY PAYMENTS

INTEREST ONLY LOANS: At 12% interest, a monthly interest only payment is calculated at 1% per month of the loan amount. For example:

1% of $40,000 loan is $400 per month of interest only
1% of $54,000 loan is $540 per month of interest only
1% of $85,000 loan is $850 per month of interest only
1% of $92,500 loan is $925 per month of interest only
PLUS $25 title company loan servicing fee and impounds of 1/12 of the taxes and insurance. There is NO principal pay down on an interest only loan. At the expiration of the loan term, if borrower has only paid the interest, the full original principal balance will be due, as well as any unpaid interest and accrued late fees. You can always pay more than the interest to pay down the loan and save on interest costs.

5 year fully AMORTIZED LOANS (pays off just like a car loan at 12.00%): Monthly principal and interest (P & I) payments are calculated at approximately $22 per month for each $1,000 borrowed. For example:

$30,000 loan: 30 x $22 per $1,000=$660 P & I monthly payment
$40,000 loan: 40 x $22 per $1,000=$880 P & I monthly payment
$45,000 loan: 45 x $22 per $1,000=$990 P & I monthly payment
$50,000 loan: 50 x $22 per $1,000=$1100 P & I monthly payment
$55,000 loan: 55 x $22 per $1000= $1210 P & I monthly payment
$63,000 loan: 63 x $22 per $1000=$1386 P & I monthly payment
$70,000 loan: 70 x $22 per $1000=$1540 P & I monthly payment
PLUS $25 title company loan servicing fee & impounds of 1/12 taxes & insurance.

After 5 years of these payments, you would own your home FREE and CLEAR. NO MORTGAGE debt!

8 year fully AMORTIZED LOANS (pays off just like a car loan at 12.99%): monthly principal and interest (P & I) payments are approximately $17 per month for each $1,000 borrowed. For example:

$75,000 loan: 75 x $17 per $1000= $1275 P & I monthly payment
$80,000 loan: 80 x $17 per $1000= $1360 P & I monthly payment
$90,000 loan: 90 x $17 per $1000=$1530 P & I monthly payment
$100,000 loan: 100 x $17 per $1000=$1700 P & I monthly payment

PLUS $25 title company loan servicing fee & impounds of 1/12 taxes & insurance.

After 8 years of these payments, you would own your home FREE and CLEAR. NO MORTGAGE debt!

5 year Balloon: Below is a simple way to estimate the monthly payment on the 5 year BALLOON loan. Based on a 10 year amortization at 12.99%, the monthly principal and interest (P & I) payments are approximately $15 per month for each $1,000 borrowed (based on a 10 year amortization). With a balloon loan, at the end of 5 years the remaining unpaid principal balance is all due and payable. For example:

$75,000 loan: 75 x $15 per $1000=$1125/mo P & I – 5 yr balloon $50,330
$80,000 loan: 80 x $15 per $1000=$1200/mo P & I – 5 yr balloon $53,685
$85,000 loan: 85 x $15 per $1000=$1275/mo P & I – 5 yr balloon $57,040
$90,000 loan: 90 x $15 per $1000=$1350/mo P & I – 5 yr balloon $60,393
100,000 loan: 100 x $15 per $1000=$1500/mo P & I – 5 yr balloon $67,104
110,000 loan: 110 x $15 per $1000=$1650/mo P & I – 5 yr balloon $73,814
120,000 loan: 120 x $15 per $1000=$1800/mo P & I – 5 yr balloon $80,525 PLUS $25 title company loan servicing fee & impounds of 1/12 taxes & insurance.

After the 5 year term, you will have substantially paid down your original loan amount, but there will still be a large balloon payment due.

ALL BRADLOAN monthly and balloon payments are made and accounted for through Grand Canyon Title Agency Account Servicing, a 3rd party loan servicing agent.

Fill out our 5 minute ONLINE APPLICATION I will get back to you usually within 24 to 48 hours (often sooner) to discuss your BRADLOAN application.

SPECIAL FINANCING on SUPER HOMES!

See our Properties page for special lower interest rate loans, reduced down payment requirements, as well as extended terms on BRAD LOANS secured by our inventory of specially renovated Brad Homes. We have some excellent properties that have lower interest rate Seller Carry-back financing with no loan fees. Many of these homes are total upscale renovations and MOVE IN READY.

Rates, terms and fees stated herein are for Real Estate and Mortgage Professional use only.
APR cannot be determined until loan costs, determined by the specific and various terms of a particular loan, are calculated in to the equation. All fees quoted herein for the numerous loan programs are typical estimated fees to demonstrate an example various loan scenerios we may create for a borrowers special needs. Actual fees may vary due to specific circumstances. Rates, terms and fees listed herein are subject to change at any time without notice.