Frequently Asked Questions
What is CoreVest and what do you do?
CoreVest is a commercial lender that specializes in residential real estate. We provide affordable financing solutions to residential investors.
What kind of loan products do you offer?
We offer low-cost term loans to finance stabilized rental properties and flexible bridge loans for short-term investment strategies. For an overview of our products, click here.
What property types do you lend on?
We lend on single family homes, condos, townhouses, 1-4 unit residences and small multi-family assets.
What is the difference between a CoreVest investment loan and a residential home loan?
We are a commercial lender that provides financing for businesses that invest in non-owner occupied residential properties. Our borrowers use the proceeds from our loans to finance their real estate businesses whereas residential home loan borrowers use their proceeds to finance their primary residence.
What kind of real estate experience is needed to qualify?
Our borrowers range from those who have fixed and flipped a couple homes to those who manage hundreds of rental properties. We have loans tailored to different borrower experience levels and funding needs.
Do I need a Special Purpose Entity for my loan?
Yes. Because we are a commercial lender, you will need a Special Purpose Entity (typically a Limited Liability Corporation, or LLC) for your loan. If you don’t have one, no need to worry—it is typically a very straightforward process and our team can assist you.
Can I obtain a rental loan for properties that are not currently leased?
Our Rental Loans are for stabilized rental properties with leased homes. Typically, this means that nearly all homes are leased or in the process of being leased when the loan closes. Several of our borrowers take advantage of our Bridge Loans to purchase and aggregate properties until they are mostly leased and can be financed with a Rental Loan.
Do you lend to foreign nationals?
Yes. Foreign nationals are an important part of our business.
Do you have minimum credit scores?
In general, we do not have a minimum credit score threshold. Instead, we look at a borrower’s overall credit profile, track record and liquidity.
How do borrowers get started?
Do you work with brokers?
Yes, we work extensively with brokers and are always looking for new relationships. We have partner programs that enable brokers to earn meaningful compensation.
How do brokers get started?
Do you offer non-recourse loans?
Yes, we offer both recourse and non-recourse Rental Loans. Recourse loans are guaranteed by the individual or operator. Non-recourse loans are secured only by the underlying real estate of the borrower, with certain exceptions such as such as fraud and bankruptcy.
Can I use my credit line to purchase in multiple states?
Yes. Many of our borrowers take advantage of this feature.
Do you do finance rehab expenses and ground up construction?
We finance certain rehab expenses under our Fix and Flip Bridge Loans. We also offer Ground Up Construction loans to qualified investors.
What is a Debt Service Coverage Ratio (DSCR)?
The debt service coverage ratio (DSCR) is the relationship of a property’s annual net operating income (NOI) to its annual mortgage debt service (principal and interest payments). For Rental Loans, we use DSCR to determine how large of a loan can be supported by the cash flow generated from a borrower’s portfolio.
What is Loan-to-Value (LTV) and how is it used to determine the proceeds of my loan?
Loan-to-Value (LTV) is the relationship of the size of the loan to the current value of the properties supporting the loan. We use LTV to determine the size of a Rental Loan and the advance proceeds for Credit Lines.
What does Yield Maintenance mean and how does it work?
Yield maintenance is a form of prepayment penalty that only applies if the borrower pays off the loan before a predetermined date. If applicable, the payment due is the present value of remaining future interest payments over the balance of the loan term.
Do your loans amortize?
Most of our Rental Loans amortize based on a 30-year schedule. We also have Interest Only options available.
What is the minimum number of properties needed for a Rental Portfolio Loan?
For our Rental Portfolio Loan, we require a minimum of 5 properties. We also offer a single asset rental loan on individual properties.
What is the minimum amount I can borrow?
Depending on the loan product, we require different minimum amounts. Click here for a product overview which shows the minimum and maximum amounts for each product.
Are your interest rates fixed or floating?
We offer fixed interest rates on all products.
What happens to the outstanding balance on the maturity date of the loan?
The outstanding balance is due at the maturity date. This is often referred to as a “balloon” payment. Contact us to discuss the different options.
What are your insurance requirements?
We have state specific insurance requirements for both property and commercial liability. Contact us for specific requirements regarding your portfolio assets.
Do you require reserves?
For Rental Portfolio Loans, we require reserves for taxes, insurance and capital expenditures.
What is your turnaround time for an application?
We usually respond back to potential borrowers with a term sheet between 2-7 days.
How long will it take to close my loan?
Most of our Rental Loans close within 4-6 weeks. Our Bridge Loans typically close within 3-4 weeks.
Can I manage my own properties?
Yes. Borrowers can self-manage their own properties or use 3rd party property managers.
Can I choose my own title/escrow company?
Yes. We try to close transactions as quickly as possible. Often, this means we will work with borrower title/escrow companies.
Together We Grow
CoreVest continues to grow with our borrowers and remain active participants in the industry