Charleston Private Lending has clear cut and straightforward requirements to make the underwriting process smooth.  As risk-averse lenders we have designed loan programs that mutually benefit the borrower and the lenders.  Our mission is to provide loans where all parties obtain an acceptable return on investment. Our promise.

Property Type

• The property must be non-owner occupied (no primary residences)
• We will will review both residential and commercial loan requests.

Loan Type

Purchase Loan

• Must be 1st position, or carefully evaluated 2nd position
• Amount limited to 65% maximum LTV, with LTV calculated from purchase price or actual value of property as determined by appraisal and/or Broker’s Price Opinion (BPO) ordered by us and paid for by the borrower. We will NOT lend solely against the borrower’s appraisal.

Purchase & Rehab Loan

• Same as above, plus the following …
• Appraiser must determine both current value (as-is) and After Repair Value (ARV)
• Amount may be 65% of ARV, but with only 65% of as-is value released at closing
• Balance of loan will be placed into a rehab escrow account to be distributed in draws as rehab work is completed
• Borrower must have adequate cash reserves; e.g. ability to pay 6 months loan payments + utilities + 10% for unexpected repairs or expenses

Refinance of Existing Property Loan

• Must be 1st position, or carefully evaluated 2nd position
• Must allow us the option to pay off existing mortgage to make ours 1st position 65% maximum combined LTV
• We must know the borrower’s planned use of funds
• If borrower has bad credit, a co-signor with good credit to help in refinancing must be a part of the borrower’s team

Hazard Insurance & Title Insurance

• Property must have hazard, fire (earthquake) or other typical insurance for at least the amount of the loan
• We require Lender’s Title Policy for at least the amount of the loan
• We will be named as the mortgagee on the insurance policy

Borrowers

• We require a primary and a backup exit strategy, such as to sell or refinance the property, that will pay us off in the allotted time period
• We are asset based lenders. However, we believe that how a person handles their own finances will paint a picture of how they will handle the project finances. Therefore, borrower credit and background will be checked.  We may lend at any score, but may require additional collateral or co-signer to offset the additional risk.
• If the project is a major rehab, borrower must have proof they have successfully completed such a project before