FREQUENTLY ASKED QUESTIONS
These frequently asked questions and answers are not intended to be exhaustive. However, they are intended to help you in determining if an NCF private loan is a good fit for you. If we haven’t answered your question here, we encourage you to contact us directly in order to discuss your specific question or need.
FAQs
How does the program work?
NCF issues business purpose real estate loans to investors who buy single-family residences (SFR’s). Investors then renovate and sell these homes or refinance them with a traditional lender. Our intention is to fund deals quickly and without the hurdles one might find in trying to get a loan from a traditional lender lender.
There are three easy steps to our loan process:
Input your deal into the NCF Quick Calculator to confirm LTV
If your deal meets our criteria, you will submit an application to get pre-approved.
If your application meets our criteria, you will be instructed to:
Order your appraisal **The final loan amount NCF will issue is based on the appraisal and not the borrower’s ARV**
Order your termite inspection.
Set up closing at our one of our pre-approved title companies.
How long does it take to close the loan once I have been approved?
There are many factors out of NCF’s control that make this a difficult question to answer with certainty. That said, NCF can close in as little as 7 business days, but the optimal timeline is three weeks from loan approval.
Things that may delay a closing may include, but are not limited to:
Completing loan application documentation
Scheduling and receiving a termite inspection
Scheduling and receiving the appraisal
Receiving clear title
Scheduling closing
Borrowers should always allow themselves ample time to close when negotiating their contract.
How long does it take to get approved for a loan?
NCF strives to get an answer to our borrowers within 2 business days from complete and accurate loan application submittal.
What are the loan terms?
NCF is committed to fast approvals and smooth closings. We have two programs available for Experienced Borrowers and New(er) Borrowers. An Experienced Borrower is someone who can show proof of two successful transactions within the last 6 months.
Do you lend on properties in a flood zone?
Yes, but flood insurance is required prior to closing.
What LTV do you lend at?
Up to 70% of appraised value
Do you pull my credit for each loan?
No. We pull credit reports on all borrowers within 6 months of their last transaction, or twice a year for borrowers who are borrowing from us consistently during a year.
Doing this allows NCF to determine that our borrowers will be able to qualify for permanent financing if the time comes to refinance.
Do you have a minimum required credit score?
A borrower’s credit score does not have any impact on NCF’s underwriting. We pull credit on our borrowers to ensure there are no recent foreclosures, property repossessions, or litigation that may impede the borrower’s ability to sell the financed property.
Do you loan money to my corporate entity, LLC, or trust name?
Yes. All loans are made to corporations, LLC’s and trusts only. We do not lend to personal individuals, but all loans are additionally personally guaranteed.
How many investment properties may I have financed at one time?
For an experienced borrower, the limit is three transactions at a time. For our new(er) borrowers, that number may be less.
Should I have a property under contract before I fill out the loan application?
Having a property under contract is certainly the most optimal way for NCF to make their decision on financing a property, but is not a pre-requisite. NCF can issue a pre-qualification letter for a qualified borrower in order to secure a ratified contract. However, that property must meet the requirements in our Quick Calculator.
This may also help the borrower in their negotiations.
Will I need to order an appraisal?
Yes. NCF will order an appraisal from a qualified appraiser of their choosing. The appraiser will determine an “after repaired value” (ARV) based on the repairs to be completed.
The cost of the appraisal is usually between $350-$400 and is to be paid by the borrower directly to the appraiser, at the time of inspection. The appraisal is usually completed and sent to NCF within 5 business days.