Loan Terms and Conditions

FEES: LoanSum offers financing to borrowers based on the size of loan and the risk associated with the transaction. Typical origination charges range from 4 to 6 points with a $2000.00 minimum. If construction funds are approved an additional fee of 1 to 2 points will be accessed for administrative costs with a $500.00 minimum. Annual percentage rates range from 15% to 18%.

TERM: Generally LoanSum loans are for 4 months (120 days) with automatic extensions every two months (60 days) up to 12 months (360 days). Borrowers must have the loan repaid by the end of the 12th month.

RENEWALS: If your loan is not paid in full after the 4th month (120 days) the loan will automatically renew for an additional two months (60 days). The loan can be renewed up to 4 times. A minimum renewal fee of 2% or $1000 will be charged for each two-month extension and the fee will be rolled into your loan.

LOAN AMOUNT: LoanSum will fund up to 100% of the purchase price (excluding closing costs). Depending on your credit, cash reserves and experience LoanSum may provide construction funds for your project so long as the total LTV (including acquisition) does not exceed 70% of the ARV (After Repair Value). Typically, LoanSum’s maximum loan will not exceed $250,000 dollars. LoanSum does not have a minimum loan amount.

LTV: will finance up to 70% LTV (Loan to Value), which is based on the after-repaired-value (ARV) of the property. The LTV calculation will include the purchase price and construction costs.

PAYMENTS AND OTHER RESPONSIBILITIES: You will be required to make monthly interest payments until your loan is paid in full. If your loan is not paid in full at the maturity date you will be charged a default interest rate of 36% APR on all unpaid principal and interest. If you have received construction funds you will be required to submit signed lien waivers from all individuals or companies providing labor or materials on the property before any construction funds are released. In addition, you will have to provide an approved occupancy permit before the final draw will be disbursed. The borrower will also be responsible for carrying builders risk and general liability insurance on every property prior to the closing date, turning on all necessary utilities for construction, carrying out all necessary repairs, 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 borrower’s responsibility to maintain an email account and keep LoanSum informed of any email and/or telephone changes. Failure to keep LoanSum informed of these changes will result in non-communication with LoanSum.

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