Post on 06-Mar-2018
Broker Program Onboarding
Broker Program
Welcome to the Team
Lima One Capital’s nationwide network of brokers have access to industry-leading nancing. Our aggressive leverage, competitive rates, transparency, and top notch customer service sets us apart from competitors. We offer a comprehensive suite of FixNFlip, Rental, and Multifamily products to ensure that we can service all your clients’ real estate investment needs.
ManyMany of our products offer Participation Points – points paid to you out of Lima One Capital’s retail origination fee. This effective fee discount is exclusively offered to brokers to help keep the overall cost to your client low. With our Premier Broker Program, you can earn nearly $30,000 a year in bonus compensation - this is on top of your standard broker fees and participation points
WWe’re always looking for ways to improve. Feedback from brokers has consistently ranked as one of the top reasons for program and process changes. Your diverse knowledge of the industry is a trait we value greatly. If there is anything we can do to enhance the Lima One Capital experience, please reach out to our Broker Relations Team via phone or email.
We appreciate you seeking out Lima One Capital and look forward to an incredibly fruitful relationship.
Dedicated Analysts
who work exclusively
on brokered deals
Same day
decisions on
Broker Submissions
You set your
compensation on
each deal
We protect brokers
on each and every
deal
BorrowerUnderwriting
Credit:
Minimum FICO Score - 600
Use middle of 3, lesser of 2 scores
Minimum of 2 scores are required
Must have tri-merged credit report
No bankruptcies in past 3 years
No foNo foreclosures, short sales, or deed
in lieu in past 2 years
Fraud and OFAC checks including
identity verication are required
Borrower’s Liquidity Requirements:
Down payment
(Based on Advantage Level)
Minimum of six (6) monthly interest
payments
10% of rehab budget
Origination feeOrigination fee
Broker fee
Borrower(s) must have a minimum of
$15,000 fully liquid
Arm’s Length Transactions:
Buyers must disclose relationships
with sellers or other transaction
parties in any manner
All income/credit/bank documents
that are over 60 days old must be
updated
Subordinate Financing:
Secondary or subordinate nancing is
permitted. Applicant requesting to use
subordinate nancing, must meet under-
writing requirements individually before
the subordinate nancing will be taken
into consideration.
Vesting:
Limited Liability Corporation
Limited Partnerships
General Partnerships
Corporations
Land Trusts
Maximum of two borMaximum of two borrower entities
(co-borrowers) per loan
Borrower Requirements:
Most recent tax returns are required
2 months of bank statements, including
average balances, are required
At least 2 months of asset verication
are required for all loans
The value of any stock, bond, or mutualThe value of any stock, bond, or mutual
fund is reduced by 50%
The value of retirement accounts are
reduced by 50%
PropertyUnderwriting
Eligible Property Types:
1-4 Unit Investment Property
Planned Unit Developments
Properties with <2 Acres
Log homes (if common to the area)
Properties subject to oil or gas leases
Must be non-owner occupiedMust be non-owner occupied
Minimum gross living area of 700 sq. ft.
Must be non-owner occupied
Ineligible Property Types:
Owner-occupied properties
Condos
Manufactures or mobile homes
Condotels
Time shares
Unique pUnique properties (except for log homes)
Working farm and ranches
Unimproved land: Not inteded for build
Property currently in Litigation
Commercial enterprises
Zoning violations including residential
zoned commercial
Single family pSingle family properties with less than
700 sq.ft. of living area
Mixed use properties
Properties with more than 2 acres
Fractional ownership
Properties encumbered by purchase option
Properties that appraise for <$25,000
PProperties with values signicantly in
excess of the predominant value of the
subject’s market area may be ineligible
Appraisal Requirements:
All loans require a full form 1004/1025 appraisal with internal property pictures.
Appraisals must be dated within 180 days of origination.
Ineligible States:
Alaska
Hawaii
Idaho
Maine
Montana
North DakotaNorth Dakota
South Dakota
Vermont
Puerto Rico
U.S. Territories including Guam and
Virgin Islands
ConstructionInspections
Initial Budget Inspection:
Lima One Capital Inspector conducts
site inspection and budget review
noting any deciencies
All deciencies in budget are required
to be included in amended budget
Construction Escrow Inspection:
Draw request will detail the work completed
and amount requested. All requests
based on the approved rehab budget
at origination
On-site inspection required to verify
completed work and project status.
Inspection report and photos provided
to Construction Escrow
Construction Escrow Manager reviews and
approved all draws prior to disbursement
of funds. 2-4 business days.
Inspection Fee: $150.00
Turn Around Time: 2-4 Business Days
Post Closing:
Lima One Capital will hold funds for
rehabilitation budget in escrow
account
Loan Program
Loan Program
Purpose: For the investor looking to bridge the gap between short term and
permanent nancing
Term: 2 Year Interest Only Balloon
Broker Points: 0.5% paid from Lima One
Capital; additional points on top
Prepayment Penalty: 5% UPB,
First 6 Months Financing Types: Purchase,
Renance - Rate and Term, Cash-out
Minimum Loan Amount: $50,000
Minimum Property Value: $75,000,
Per collateral property
Extension: 12 month extension
available for 1% fee
LTV Adjustors (Compounding)
Rate Term Renance -5%
Zip 2-5% Decline -5%
Multifamily/Mixed Use -10%
Zip 150-200 DOM -5%
Cash-out Renance -10%
RCR (Property Level) Calculation:
Gross rents divided by the Monthly Interest
Only Payment
Lease income is derived from rent survey
(Form 1007) and current in place lease, if
applicable
Example of RCR Calculation:
$100,000 Loan; $950 Monthly Rent; 7.6% Rate
Monthly Payment: $633.33
$950/$633.33 = 1.5
PropertyUnderwriting
Eligible Property Types:
Must be rent-ready condition
Must be non-owner occupied
Single Family Residential,
minimum 700 sq. ft.
2-4 Family, minimum 500 sq. ft. per unit
WWarrantable condominiums,
minimum 500 sq. ft.
Multifamily apartment buildings
Mixed use buildings (Residential >50%
total property sq. ft.)
Appraisal Requirements:
All loans require a full Form 1004, 1073,
1025, or 1050 appraisal
A market rent analysis is required for
all properties
Appraisals must be dated within 120
days of closing
Ineligible Property Types:
Timeshares
Condotels
Mobile homes
Properties subject to purchase option
Raw land/Working farms/Ranches/
Orchards
Non-warrantable condos
Properties affected by natural disasters
Properties not compliant with local
zoning regulations
Properties with known adverse
environmental conditions
Eligible States:
Southeast - AL, FL, GA, KY, MS, NC,
SC, TN, VA, WV
Northeast - CT, DC, DE, MA, MD, NH,
NJ, NY, PA, RI
Midwest - IA, IL, IN, KS, OH, MI, MN,
MO, NE, WI
Southwest - AR, LA, OK, TX
West - AZ, CA, CO, NM, NV, OR, UT, WA,
WY
Loan Program
Purpose: Designed for the real estate investor purchasing or renancing investment
properties to hold for business purposes
Prepayment Penalty:
5% stepping down 1% every year
Minimum Loan Amount: $50,000
Minimum Property Value: $75,000
Single Collateral Loans, $60,000
Portfolios
Broker Points:
On top of Lima One Capital Origination Fee
Eligible Borrowers:
U.S. Citizens
Client must own primary residence
or >1 rental properties
Term: 30-year xed or 5/1 ARM,
full amortization
5/1 ARM
DSCR Calculation: Gross Rents/PITIA
30-Year Fixed
BorrowerUnderwriting
Credit:
Minimum FICO score: 660
Use middle of 3, lesser of 2 scores
Minimum of 2 scores are required
Must have tri-merged credit report
Minimum 24 months of credit history
No bankruptcies in past 4 yearsNo bankruptcies in past 4 years
No foreclosures, short sales, or deed
in lieu in past 3 years
Minimum of 3 active trade lines per
borrower for at least 24 months
Asset Verication:
Most recent 1 year tax returns are required
2 months of bank statements, including
average balances, are required
At least 2 months of asset verication are
required for all loans
The value of any stock, bond, or mutualThe value of any stock, bond, or mutual
fund are reduced by 30%
The value of retirement accounts are
reduced by 50%
Asset Verication:
6 Months liquid reserves (PITIA) per
Lima One Capital nanced property
Reserves are calculated net of
downpayment
First 3 months of PITIA are paid in advance
Vesting:
Corporation, LLC, and Partnerships
are allowed
No more than 2 individual borrowers
per loan
Fraud and OFAC checks including
identity verication are required
Arm’s Length Transactions:
Buyers must not be related to Sellers
in any manner without full
disclosure
Subordinate Financing:
Not allowed, unless pre-existing on a
rate and term renance
PropertyUnderwriting
Purpose: Designed for the real estate investor purchasing or renancing investment
properties to hold for business purposes
Eligible Property Types:
Single Family Detached
1-2 Family 3-4 Family
Townhomes Warrantable Condos
Must be non-owner occupied
Must be <2 acres
Minimum gMinimum gross living area of 750 sq. ft.
Ineligible States:
Alaska North Dakota
Hawaii South Dakota
Idaho Vermont
Maine
Montana
Ineligible Property Types:
Commercial Property
PUDs Timeshares
Condotels Non-Warrantable Condos
Mixed Use Fractional Ownership
Mobile Homes Unimproved land
WWorking Farms/Ranches/Orchards
Homes with deferred maintainance
Multifamily housing greater than 4 units
Unique or over-improved properties
Geodesic domes or Earth Homes
Properties subject to oil or gas leases
Properties affected by natural disasters
Appraisal Requirement: All loans require a full Form 1004 appraisal with internal
property pictures. Appraisals that are over 120 days old must be updated
Submission Process
FixNFlip - Last Name, First Name (123 Main St.)
Rental30 - Last Name, First Name
Rental2+1 - Last Name, First Name (456 Court Ln.)
Processors: Please reference the name of the broker in all communication
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Visit the Broker Library and download the Broker
Submission form
Submit the full underwriting package once an
approval has been issued
Have the client apply using your unique link
(Provided once your broker agreement has been
processed)
Email Subject Format for Broker Submissions