• Standard Loan Structure: Purchase price plus rehabilitation should not exceed 65% of realistic and saleable price after repaired value.
• Down payment (20%, 10%, etc.) may be made in cash, at closing, or may be affected by supplying acceptable cross, or supplemental collateral.
• All fees, closing costs and points are “rolled into the loan.” There are also estimated costs of $2,500.00 for origination fees depending on loan size, plus standard legal/documentation fees, and standard $600.00 insurance hold. The only amount a borrower needs to bring to close is their 20%, 10%, etc.
• While our loans are designed for purchase to rehabilitate and re-sell, our loans may be used for short term refinance, as well as purchase to rehabilitate and rent, if an appropriate exit strategy is presented.
• Our borrowers are generally Corporations or LLCs, with personal and corporate guarantees. We are not a consumer lender. We do not under any circumstances lend to individuals.
• Our collateral is only and always real estate.
• We generally lend on houses, but will in some cases consider multifamily, retail, office, and mixed-use buildings. We do not generally lend on raw land, industrial property, or anything that may be contaminated with volatile organic chemicals (gasoline, oils, etc.), hazardous heavy metals (lead, arsenic, chromium, lead, silver, etc.) or other unmentioned hazardous materials.
• Guarantors may not be in an open bankruptcy or divorce proceeding, or felony prosecution.
• Borrower may not occupy the premises as a private residence.
• Construction / rehabilitation work must comply with all laws, statutes and codes.
• We prefer that our borrower have decent credit – mid-score of at least 640. We can accept compensating factors, and a well-supported explanation of specific circumstances which may have caused the score to be unusually and temporarily low.
• We do not generally lend in high crime or derelict neighborhoods. Every community is different. We claim the rights to decline any loan for any reason.
• National Capital Funding Group LLC will order a certified appraiser to appraise the property. Borrower is responsible for the cost of the appraisal.
• A member of the National Capital Funding Group LLC Approval Team will visit, inspect and take photos and video of the property. A modest site visit fee may be charged at the time of the visit.
• Every student is issued a Funds Available Letter and may be used by you to notify a seller that National Capital Funding Group LLC has allocated funds for your purchase.
• Down Payment refers to the amount put down by borrower, at close, as a % of the Purchase Price Only.
• PTS refer to points charged in the origination of the loan. 1 PT = 1% of the total loan amount.
• RATE refers to the annualized rate of interest charged on the total borrowed amount.
• Interest is charged as interest only; monthly payments do not include pay-down of principal.
• Profit Share refers to the percentage of net profit from the project funded, shared with National Capital Funding Group LLC when the loan is paid off. National Capital Funding Group LLC is the only company that will coach borrowers in order to contribute to their success during the entire loan process.
• Applications will be considered complete when they include all documents requested on the Application and Rehabilitation Information Package (i.e., Seller-signed Purchase Agreement, a completed Rehabilitation Budget Estimate Guide, Etc.).
• Rehabilitation funds are paid out during the loan in the form of Draws, each related to specific Draw Requests. Each request must include verification of work completed signed of Lien Waivers, receipts and copies of applicable permits and licenses.
• Property and Casualty Insurance is required, with Lender named as Additional Insured. As referenced above, National Capital Funding Group LLC holds a $600.00 fund to be used as replacement for cancelled, unenforceable or invalidated insurance coverage if and as needed to protect collateral property. This amount is refunded at payoff of the loan if it remains unused.
• Borrower pledges their shares in the ownership entity as additional security for the loan.
• If the event occurs and we cannot fund your loan, we have a network of Affiliate Lenders who may look at your request and may well be better able to approve and fund the loan you desire.

This term and conditions sheet set out the general guidelines of the loan program and is designed as an aid to prospective borrowers and other clients. This term and conditions sheet do not represent or imply a contract or an offer to lend funds.  An offer to lend funds may only be made by a written commitment letter issued by National Capital Funding Group LLC to a prospective borrower.  All terms, conditions and lending decisions are subject to final underwriting; compensating factors may cause adjustment.  This term sheet is subject to change at any time without notice at the sole discretion of National Capital Funding Group LLC.  Credit and collateral are subject to approval.  Terms and conditions apply.  This is not a commitment to lend.  (6.1.15)

Disqualifiers

Although we love being able to help our students and fund their deals, there are a few situations where we are unable to give you a loan. If you fall under one of the following categories, we absolutely cannot lend to you.

1. Open bankruptcy
2. Active divorce proceedings
3. Felony conviction (Less than 7 years old)
4. Open felony prosecution
5. History of charge-offs and non-payment of debts AKA a “credit abuser”