What types of loans does Descans Loan make?
We make private loans to fund residential (1-4 family) fix and flip projects, new construction projects, and long-term buy and hold properties, construction, personal etc
Why should I consider Descans Loan?
Our commitment to developing long-lasting personal and professional relationships with our borrowing partners is what distinguishes us from our competitors.
Does Descans Loan only accept first lien security positions?
No. Its case by case
Do I need to have a property under contract before applying, or can I get per-approved?
You may apply to be pre-approved as a borrowing partner based on your credit report, background check, and personal financial statement without a property under contract. This process is normally completed within 24 hours.
How long does it take to approve and close a loan?
Approval and funding typically occur within two to four business days of receiving all required documentation.
How much experience do I need to qualify for a Loan?
Although we specialize in serving experienced borrowing partners who complete multiple projects each year, we recognize that every successful entrepreneur must start somewhere. Therefore, investors with little or no experience will be considered case-by-case for Fix N’ Flip and Buy and Hold Rental loans.
What percentage of my loan will Descans Loan fund?
For Fix N’ Flip projects, we fund up to 90% of the purchase price and 100% of the rehab costs (max 70% ARV). For New Construction projects, we fund up to 85% of the purchase price and 100% of the rehab costs (max 80% ARV). For Buy and Hold Rental loans, we fund up to 90% of the purchase price.
How much money will Descans Loan lend on a single project?
We make loans ranging from $30,000 to $20,000,000, inclusive of both purchase and rehab funding. Exceptions may be considered case-by-case.
What is the duration of a Loan?
Fix N’ Flip loans are underwritten for 12- to 48-month terms. New Construction loans are for 12-24 month terms. Buy and Hold loans are for 30-year terms. Extensions may be granted at the our discretion, but are not guaranteed.
Are there any prepayment penalties?
There are no prepayment penalties.
What are Descans Loan’s interest rates?
Loan rate is 7%.
How often am I required to make interest payments?
Interest payments are made on a monthly basis.
How does Descans Loan handle draw reimbursement payments?
After completing work, a borrowing partner will submit a draw request to us via e-mail. Following receipt of the request, Descans Loan will send an inspector to the property to verify that the stated work has been completed. Upon successful inspection, Descans Loan will release the requested draw amount within 24 working hours. The entire draw process from request to reimbursement takes 3-4 business days.
What fees and costs am I responsible for?
Borrowing partners are responsible for origination, underwriting, closing costs and appraisal if required. .
How does Descans Loan determine my loan amount?
We utilize a third-party valuation as well as internal systems and metrics to calculate the ARV.
Am I required to purchase property insurance for a loan?
Yes. We require dwelling coverage for the total loan amount on all loan types.
Am I required to submit personal tax information and other financial documentation to be approved for my loan?
Yes. Descans Loan requires personal tax returns, bank statements, pay stubs, or other extraneous financial information.
Will Descans Loan lend money on a primary residence or owner-occupied property?
Yes. Case by Case
Where does Descans Loan operate?
Descans Loan currently lends Nationwide. We are constantly expanding so please don’t hesitate to reach out if you are outside the United States but would still like to partner with Descans Loan!