Frequently Asked Questions

Are you a broker or lender?

SFRLoans is a commercial mortgage broker not a direct lender. We deal with the highest quality and the best capitalized lenders in the country to bring you the most reliable funding sources available.

What states do you lend in?

We have provided a separate checklist of states that we currently lend in. We are working to expand our states and will update the checklist accordingly.

What property types do you lend on?

Our lenders lend on single family homes, condos, townhomes, 1-4 unit residences and small multi-family assets. There are technical requirements for condos and townhomes that we will discuss with you.

What kind of experience is needed to qualify?

We have lenders for borrowers that have never done a Fix and Flip to those that have completed hundreds or manage hundreds of rental properties.

Do you lend to foreign investors?

Yes our lenders will provide financing for foreign investors however on slightly more restrictive terms.

Do I need a Special Purpose Entity for my loan?

Yes you typically need to set up an entity as our lenders are commercial lenders. The entities can be an LLC or a Corporation. (If you have another entity please provide us the info and we can check with our lenders.)

What are the fees and costs to apply and close?

We have streamlined and automated our process to minimize your pre-qualification and closing fees. We have prepared a Lender Matrix that states the range of fees for the lenders and is inclusive of our costs. Please refer to the Lender Matrix.

What is the process of obtaining a loan from one of our lenders?

The process is simple, fast, reliable and 100% online. To apply for a loan, simply email to info@sfrloans.com ALL ITEMS on the Prequalification Checklist to obtain your prequalification and loan quote for a specific property. If you are ready to proceed let us know and we will start the closing process after you have forwarded ALL ITEMS on the Pre-closing checklist to us.

Is SFRLoans all automated or can I talk to someone?

Absolutely you can talk to someone. While we request that you send your info to the email address provided, we assign the requests to our team members. The team member assigned to your deal will email you back with their contact info within 24 hours, usually the same day, from when we receive the request. (This is based on EST so if you are on the west coast it will be the next business day.)

When do I get my quote?

A pre-qualification can be obtained and sent to you within 48 hours of receiving the requested info. We verify your info and upload it to the lender with the best program to meet your needs. We will then send you the rate, term, costs and guarantor info. These are not teaser rates, this is the actual rate and terms you will get if all of the basic information you’ve provided can be verified during underwriting.

How long does it take to confirm the loan amount?

The timing can vary by lender. Our preferred lender typically can respond with the valuation verification of the loan amount in five business days from submitting the “appraisal fee”. (It is of critical importance that we have access to the property immediately so the property inspector (appraiser) can get into the property. Our other lenders order a third party appraisal which can take two weeks or so before being completed.

Do you provide proof of fund letters?

Yes we can provide a pre-approval from our HML to you upon request. It usually takes 24 hours or less to provide this letter.

What happens if the appraisal does not confirm the quoted loan amount?

The lenders will just reduce the loan amount to comply with the valuation amount. This means you and/or your GAP funder have to come up with additional funds to close.

Can I use a GAP funder?

Yes, however, this is a bit tricky with the lenders. They don’t allow a second lien on the property and most of the lenders want the GAP funder to be a part of the borrowing entity and personally guaranty (PG) the loan. Only one lender at this time allows a GAP funder not to PG the loan. We are preparing a separate checklist and instructions on how to use a GAP funder.

How long will it take to close my loan?

It typically takes between 12 and 14 days to close on the first loan with the time decreasing to between 10 and 12 days for repeat borrowers. (Please note that these timeframes are completely dependent on the submission and verification of all of the info requested.)

How are rehab funds handled?

The lender will hold back the funds for the rehab of the property. The borrower will request a draw through the lender. The contractor must provide the title company with a Sworn Statement and a Waiver or Lien and within 48 hours the lender will have an inspection done to verify the work has been completed. There is a charge for each draw that is deducted from the draw amount. The funds are typically disbursed with 24 hours after the inspection.

What are your insurance requirements?

There are specific insurance requirements for our lenders. Typically they require a Builder’s Risk policy for a term of 12 or 13 months paid in full at the closing.

Do you offer non-recourse loans?

Yes our lenders offer a non-recourse option to primarily experienced people and/or with lower leverage on the property. A non-recourse loan is secured only by the underlying property of the borrower, with certain exceptions such as fraud and bankruptcy.

Do you finance rehab expenses and ground up construction?

Our lenders will finance rehab expenses in most all circumstances. There are several differences in the amount of rehab expenses that can be financed by our lenders. We will evaluate the specific deal to get the best loan to meet your needs. Some of our lenders will also provide financing to construct a house to either flip or keep as a rental property.