Loan Terms and Conditions

FEES: LoanSum offers loans to borrowers base on 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 requested an additional fee of 1 to 2 points will be accessed for administrative costs with a $500.00 minimum. Interest charges range from 1% to 1 1/2% of amount borrowed per month regardless of term.

TERM: Generally LoanSum loans are for a maximum of 4 months. The borrower must have the property refinanced or the loan repaid by the four-month deadline.

RENEWALS: Renewals or extensions for an additional 4-month term are allowed. A minimum fee of 4% or $2000.00 whichever is greater will be charged on all renewals.

LOAN AMOUNT: Loans will be 100% of the purchase price and 100% of the repair costs so long as the LTV does not exceed 70% of the ARV (after repair value). LoanSum has no maximum loan amount.

LTV: The max LTV (loan to value) LoanSum will loan is up to 70% LTV, 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 during the four-month loan term. If LoanSum agrees with the borrower to extend the loan after the 4-month loan term has elapsed, the borrower will be responsible for a minimum renewal fee in the amount of 4% of the current loan amount which is due when you sell the property. The borrower will be required to submit signed lien releases from all individuals providing labor or materials on the property before any construction funds are released. The borrower will also be responsible for carrying builders risk and general liability insurance on every property 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 LoanSum informed of any email and/or telephone changes. Failure to keep LoanSum informed of these changes will result in non-communication with LoanSum.