Borrower signs personally and may place property in LLC

All loans are non owner occupied (NOO) and 1st Mortgages

Underwriting guidelines in the Richmond, Va. And bordering counties.

For borrowers with previous successful loans with RMI

For sfr(single family residence) loans up to $250,000

Max loan 80% of after fix up value (afv)

Loan 90-95% of foreclosure auction price not to exceed 80% of afv

Borrower to show proof of rehab funds or have prior successful loan with Richmond   Mortgage Inc. (RMI)

No cash out to borrower

Borrower pays all cost of closing in cash

Appraisals based on prior sale where sales occurred no more than 9 months prior .Sales occurring in the last 90 days given greatest weight

Estimated Replacement cost evaluation for land + building costs equals 1.10 x loan balance or less

Borrower exit strategy

1.      Refinance to place in borrowers permanent inventory

2.      Retail sale price is 5-10% less than all comparable properties in same subdivision and or zip code (school system). Retail price must be a minimum of 25% above loan balance. I.E. ( loan $100,000 divided by 80%=$125,000 )( $125,000 x 80%=$100,000 )

Fico score- not considered

Borrowers dti not considered

No properties that are near expressway or front major roadway. Exceptions for busy roadways made on a case by case basis.

Second mortgages allowed from seller

Interest rate to borrower 12.75%-14% apr+2-3.5 points accruing each 90 days . Points paid on the back end. Interest only payments due monthly on rehab properties and points paid at payoff.

Accrued interest and points on construction loans. Loan term 6-12 months.

Second mortgages allowed from seller 

For sfr loans above $250,000, loan to value is max 70% after fix up value, 10% down payment.

For borrowers outside of the Richmond, Va. Market

For sfr loans up to $250,000

Properties must be in named subdivision and built after 1980

Minimum 10% down payment from Borrower as of 2008 (may be adjusted down or up as market conditions change)

No properties near expressway or that front major roadways.

Max loan 70% afv assuming borrower has put down 10%

Loan 90% of foreclosure auction price not to exceed 70% of afv , where borrower as put 10% down.

Proof of rehab funds required and escrow with borrowers local attorney may be required

No cash out to borrower

Borrower pays all cost of closing in cash

Appraisals based on prior sale where sales occurred no more than 9 month prior

         Sales occurring in the last 90 days given greatest weight

         Estimated Replacement cost evaluation:  land+building  

         equals 1.10 times loan Balance or less

Borrower Exit strategy

   1.   Refinance to place in borrowers permanent inventory

2.      Retail sale price is 10% less than all comparable properties in same subdivision and or zip code (school system). Retail price must be a minimum of 30% above loan balance. I.E. ( loan $100,000 divided by 70%=$142,857 )( $142,857 x 70%=$100,000 )

Fico score- not considered

Borrowers dti not considered

Second mortgages allowed from seller

Interest rate to borrower 12.75%-14% apr+2-3.5 points accruing each 90 days . Points paid on the back end. Interest only payments due monthly on rehab properties and points paid at payoff. Accrued interest and points on construction loans. Loan term 6-12 months

For loans above $250,000 , loan to value is 65% afv with 10% down from borrower.