LENDING PROGRAMS
Rental
Cash-out Refinance
Multifamily
Grow your real estate holdings portfolio and build long term cash flow and wealth with our rental loan program.
Real estate investors looking to purchase income-producing rental properties can scale and grow their portfolio quickly with our flexible rental program. Our entire process is completed in-house including underwriting, process, and funding. We can offer you fast, easy, and reliable funding for a purchase only, refinancing an existing property you own, or performing a cash-out refinance from the equity built in the home.
Multifamily
Cash-out Refinance
Multifamily
Maximize the ability to scale your investments, grow your portfolio, and generate cash flow with a commercial multifamily (5+ Units).
Investors with the goal to purchase, refinance, or cash-out of Commercial Multifamily or Commercial Mixed-Use properties can depend on AFC to fund their investment needs. Typically on the grander scale of investments, these properties offer a unique opportunity to generate a large return on investment. Our streamlined, in-house process will ensure the best investor experience while moving towards a quick close.
Cash-out Refinance
Cash-out Refinance
Cash-out Refinance
A Cash-out Refinance gives the ability to create a new loan on an existing property that has amassed equity, while rewarding the investor with a lump sum of cash.
In need of extra cash? Have untapped equity in an investment property? Look no further than Alpha Funding Capital’s Cash-out Refinance Program. Our fast, easy, and reliable program can be used to extract cash from properties owned free and clear, or refinance an existing loan with added equity. These loans do not report on credit and thus do not affect the debt-to-income ratio. Utilizing our cash-out refinance program allows investors to receive the best possible leverage at the best possible rate.
Fix and Flip
Commercial Bridge
Cash-out Refinance
Add value to a property using our loan to purchase and renovate an existing property with the ability to close quickly.
The fix and flip program can help provide you with fast, easy, and reliable funding on your light to heavy renovation projects. Our program works whether you are a new or experienced investor. We work with you throughout each step of the process from analyzing your deal to the time you pay off your loan and everything in between from underwriting, funding, servicing, and managing the construction with you and your team.
New Construction
Commercial Bridge
Commercial Bridge
Create value by building on vacant land or tearing down an existing structure with our new construction program.
As the market continuously shifts and good deals are few and far between, many investors turn to New Construction. Widely Considered by many to be the “pinnacle of real estate investing”, New Construction offers the opportunity to leave a lasting imprint on the home, neighborhood, and community that you are investing in. With Alpha Funding Capital’s guidance, we can help you start and scale your next project.
Commercial Bridge
Commercial Bridge
Commercial Bridge
Short term bridge loans for your commercial mixed-use and multifamily properties.
Our commercial bridge program offers you quick access to acquire and improve your multifamily properties over 4 units and also mixed-use properties. Our in-house end to end loan process offers you a streamlined and reliable solution to build your portfolio.
RENTAL PROGRAM DETAILS
Interest Rate:
Interest Rates Starting at 7,25%
Qualification:
Rent-ready and Leased Qualify
Loan Amount:
Loan Amount from 75,000 to 2,000,000
Credit Score Fico:
Minimum Fico of 680
DSCR (Debt Service Credit Ratio) :
Minimum DSCR of 1.0
Loan Term :
30-Year Fixed Rate
Property Type:
Single Family, 2-4 Unit Multifamily, and Condo/Townhomes
RENTAL PROGRAM Frequently Asked Questions
a. It is a loan for real estate investors that want to invest in rental properties. The property types include single family homes, 2-4 unit multifamily, townhomes, vacation rentals, and warrantable condos. Our long term rental financing can be structured as 30 year amortizing, ARM, or interest-only options.
a. Our term rental loan program can be used to refinance out of a hard money loan into a lower rate and longer term after the renovations are complete and it is rented out to tenants. It is a very popular investment strategy called BRRRR (Buy, renovate, rent, refinance, and repeat) where investors will repeat this process as a way to accumulate multiple units quickly with very little money invested long term by pulling the initial money invested and using those dollars to acquire more properties. Some investors who do not plan on renovating the property and would like a loan to just purchase can acquire the property with this light documentation option that is based off of the DSCR (Debt Service Coverage Ratio)
a. Each and every investment is unique. Real estate investors that are looking to own real estate long term or even short term depending on how the loan is structured with the prepayment penalty can benefit from our rental loan with the very competitive rates and terms. Many investors want to get a loan mostly based off of the ability of the income produced by the tenants renting covering the monthly expenses that include the PITI (Principle, interest, taxes, and insurance) payment. The loan is a “light-doc” loan with no income verification is based off of the rental income covering the expenses. The minimum DSCR is usually at 1.0-1.2 where the rental income will have to cover all of the PITI payment and in most cases have a little extra after expenses have been paid being cash-flow positive.
a. This investment strategy is very popular among investors. By using a short term hard money loan the investor has the ability to purchase a property very quickly usually within weeks or even days without many of the traditional mortgage requirements. The property is underwritten and evaluated based of the ARV (After repair value). Many times, a property can benefit from upgrades and by making improvements to the property and units the value of the property can appreciate and grow in value very quickly. Based on the hard money loan, the LTV usually is around the “65% rule” which allows for the investor to refinance at an LTV around 75-80% once the property is rented out. That higher LTV can in some cases help the investor refinance the money borrowed in the hard money loan and potentially the down payment, closing costs, and some soft costs incurred during the hard money loan. The power of this strategy is where the property and its expenses are covered by the rental income generated from the units and in a good deal being able to recoup all of the initial investment to use for another property acquisition allows to build a substantial portfolio and wealth quickly is executed well.
Multi-family Term PROGRAM DETAILS
Interest Rate:
Interest rate starting at 9.49%
Loan Size :
Minimum Loan Size Amount 500,000
Max Loan to ARV;
Up To 70% LTV
Credit Score (FICO)
Minimum Fico of 680
Loan Term:
30 Year Term Available
Property Type:
Eligible Mixed-Use and 5 + Unit Multifamily Properties
DSCR (Debt Service Coverage Ratio) :
Minimum DSCR of 1.25
Multifamily Terms Frequently Asked Questions
These loans fund the acquisition and refinance of commercial multifamily and mixed-use properties, with the goal of achieving a net positive cash flow.
Investors frequently purchase these properties with the goal of generating positive monthly cash flow and ultimately selling them for profit. In many cases, investors will acquire a commercial multifamily or mixed-use property and rehab the property with the goal of raising rents for the life of the property. Using this approach, the investors can appreciate the value of the building and sell when either the value of the property reaches its maximum or when maintenance costs become too high.
Commercial term loans operate the same as our residential single to multifamily home loans. These range from 5/1, 7/1, and 10/1 ARM’s to a 30 Year Fixed Rate loan. In this program specifically, we can adjust the amortization schedule to best fit any investors needs.
For these properties and loan types in particular, there is a $500,000 minimum loan amount. If you are unsure if your property will qualify, we recommend to reach out to our team directly and speak with one of our expert associates.
CASH-OUT REFINANCE PROGRAM DETAILS
Cash-Out Refinance Program Details:
Interest Rate:
Interest rate starting at 7.49%
Credit Score (FICO)
Minimum Credit Score of 680
DSCR (Debt Service Credit Ratio) :
DSCR minimum of 1.1
Seasoning Requirrement:
Minimum Seasoning of 6 Months Leased
Max Loan to Value:
Up To 75% LTV
Property Type:
Single Family and 2-4 Unit-Multifamily
Loan Term:
30-year Fixed Rate Term
Cash-out Refinance Frequently Asked Questions
Essentially the two loans are one in the same. Both programs offer the same process, timeline to close, and requirements, with the purposes being the greatest difference. Rate & Term Refinances are generally used to payoff an existing loan balance, while keeping the balance low and receiving a better rate. Cash-Out Refinances are best utilized when there is existing equity (value) in the property.
What can’t you do? Once the loan is complete, the money is yours to spend however you like. Many investors see the opportunity to cash-out of a property as a major win, and choose to acquire more rental units, focus on their next flip or new construction project, or treat themselves to a well earned vacation.
AFC’s Cash-Out Refinance Program follows some of the same procedures and guidelines as your typical bank loan, sharing many of their advantages and few of the disadvantages. Our refinances have a few distinct advantages including but not limited to; the ability to close quickly (within 30 days), our loans being considered “lite doc” with no tax returns or income statements required, and the fact that our loans are completed to an LLC/Corp that will never reflect on an individual’s personal credit.
As in our rental program, we have a variety on terms that will fit any investors needs. These range from 5/1, 7/1, and 10/1 ARM’s to a 30 Year Fixed Rate loan. In any case, the amortization schedule (how the loan is priced) is set to 30 years, ensuring the lowest possible payment.
FIX AND FLIP Program Details
Interest Rate:
Interest rate starting at 9.49%
How Interest is Charged:
Interest Charged as Drawn
Property Type:
Single Family and 2-4 Unit-Multifamily
Income Verification:
No Tax Returns Required
Credit Score (FICO)
Minimum Fico of 650
Max Loan to ARV
Up To 70% LTV {75% On Case-By-Case Basis
Experience Requirement:
No prior Experience Required
FIX AND FLIP Frequently Asked Questions
A fix and flip loan is a short term mortgage for you to purchase and renovate your property. The fix and flip loan provides the capital to acquire the property and also complete the repairs to help improve the property value. If the project was bought well and the numbers from the rehab budget and ARV were accurate once you are ready to put it back on the market and sell it at a higher price there should be enough money to pay off your mortgage, all of your costs incurred during the project, and should leave for a nice profit left after all expenses have been repaid.
Once the property has been renovated and work is complete if you determine that the best course of action is to hold onto the property and not sell it keeping it as a long term cashflow and appreciation strategy you can refinance out of the fix and flip loan and get a long-term loan through traditional or private lenders.
As work is completed in your fix and flip and you are ready to draw from your construction line of credit you simply complete our draw request that outlines the items of the initial budget that was approved prior to closing that you are looking to get reimbursed for. Once the request has been submitted and processed a draw inspection would be ordered and scheduled between the inspector and investor to verify the work that was submitted for reimbursement was completed. Once the inspection report is received, reviewed, and approved you would be notified and the money would be wired via ACH to your bank account that provided and on file. For a fix and flip loan the investor can use as many or as little draws as needed during the project and based on the cashflow of the investor.
There are many different strategies that can be executed with the fix and flip program. With each investment property and scenario being unique the strategy deployed will be dependent on the overall exit strategy of the investor on that given deal and sometimes multiple exit strategies can apply. Some investors will do very minimal work and put the property back on the market with little to no risk from construction and look to make a quick profit from the trade. Other properties may benefit from force appreciation and adding square footage whether vertical or horizontal can quickly increase the value of the home. Each project will depend on the investor’s preference and also evaluating the condition of the property along with an understanding on that local market.
a. A new investor can obtain financing with our fix and flip program. With the lack of experience as a beginning investor the loan-to-cost would be lower until more round-trip deals have been completed. It is always encouraged that a new investor has a good team surrounding them. Alpha Funding is very welcoming to new investors when getting into fix and flips and real estate investing. One of the more rewarding parts of lending is being a part of the journey watching new investors complete their first few deals and grow into repeat borrowers growing and scaling their businesses.
NEW CONSTRUCTION PROGRAM DETAILS
Interest Rate:
Interest Rate Starting at 7.99%
Experience Requirement:
Strong Credit, Liquidity and Experience
Property Type:
Single Family and 2-4 Units Multifamily
Build type
Stick or Modular Build
Max Loan to Cost and Loan to AVR:
Up to 90% LTC and 70 % ARLTV
Loan Term:
12 -18 Month Term Available
How Interest is Charged:
Interest Charged as Drawn
New Construction Frequently Asked Questions
This loan provides investors with the resources necessary to acquire an existing property and funds to build an entirely new structure. This product can be utilized in a wide range of areas from deep urban to suburban, and provide a new way to approach your next successful investment. To obtain this loan investors typically require previous new construction experience, or a recent history of completed fix and flips. Property types range from single to four family on the residential side, commercial mixed-use, and commercial multifamily. The loan term is generally (12) months with the opportunity to extend further.
Like fix and flips, new construction offers the investor an excellent way to realize a great profit. Once work is completed, investors have the opportunity to either sell the property or refinance the property using the BRRRR Method. Depending on the timeline to build, the property’s ability to generate monthly cash flow, and the growth in the area of investment, selling and refinancing are both viable options. While it is best to approach a deal knowing your end goal and having a strategy for success in mind, AFC will always provide our best options to assist as your priorities shift.
i. The Unknown Elements
The first time you enter a home that is primed for a flip, you may walk out with a feeling that this project will be a simple “in and out”. After starting construction and peeling back layer upon layer, you find out that this is starting to seem like a bigger project than originally thought. When building new construction, those worries are thrown out the door as you have complete control over foundation, structure, layout, appliances, and anything else you wish to customize. The unknown is not a factor
ii. Maintenance Costs
For the investor that prefers to hold properties as rentals in their portfolio, maintenance can be a large factor in long term profitability. When holding a new construction property, investors can count on key elements including but not limited to the foundation, roof, flooring, and hot water heater to hold up over the initial span of ownership. This in turn limits monthly and annual expenses, helping you realize a larger ROI (return on investment).
iii. Increased Supply
In times of high real estate demand for investors and end buyers, finding properties are always a challenge. Utilizing this program, investors will be able to broaden their horizons. No longer limiting themselves to typical real estate listings, empty plots of land and homes that require demolition now add to the ever-growing list of opportunities.
Commercial Bridge PROGRAM DETAILS:
Commercial Bridge Program Details
Interest Rate :
Rate Starting at 9.49%
Max Loan to Cost:
Up to 85% LTC of Total Project Cost
Property Type:
Select Mixed-Use and Multifamily Properties
Limitation:
No Special Use or Commercial Only Properties
Loan Term:
12 Month Term
Max Loan to AVR:
Up to 75% ARLTV
Loan Size:
Minimum Loan Amount of 500,000
COMMERCIAL BRIDGE FREQUENTLY ASKED QUESTIONS
Any 5+ residential units commercial multifamily property and any mixed-use property where the rental income generated from the residential units is greater than 50% compared to the rental income generated from the commercial units.
The borrower must provide documentation of prior experience investing with commercial properties. We also are looking for strong credit and liquidity with our sponsor for the loan. Our max ARLTV is 70% and on a case-by-case basis goes up to 75%.
We will cover up to 80% of the acquisition price and 100% of the construction budget as long as the total loan does not exceed the max ARLTV of 70-75%. The investor would need to bring the remaining 20-25% of the acquisition as money down for this loan program.
Yes, we offer a few options with varying terms from 5-30 years on eligible mixed-use properties and multifamily properties of 5+ units. The LTV of the As-Is Value is 75% for purchase and refinances. There is also a cashout refinance option if there is enough equity built up in the property leftover after paying off the existing mortgage.