Single Family Residence Loan Criteria
Property Types
Single Family Residential (1-4 units) No Land or Ground-up Construction
Occupancy
Non-owner occupied only
Loan Size
$75,000 to $5,000,000
Lien Type
1st position trust deeds and mortgages
Loan Purpose
Residential Business Purpose (Fix & Flip, Fix to Rent, Buy to Rent, Refinance and Bridge)
Term
Up to 36 months (preferably 24 months or less)
Location
United States (excluding South Dakota and Minnesota)
Loan-to-Value (LTV)
Maximum Loan-to-Value Ratios:
- Up to 75% of “as-is” value not to exceed 90% LTC (determined by purchase price)
- Up to 70% LTARV on loans with construction reserves (determined by appraisal)
- Up to 65% LTV for cash-out refinance A loan is considered cash-out when the cash to the borrower exceeds
- (a) $75,000 or (b) 10% of the total loan proceeds.
- Includes funds paid through escrow, as well as federal tax liens and taxes on properties other than the subject property.
Interest Rate
Generally, 8-12% net rate to PeerStreet
Participation Positions
Lenders may retain a B-Piece or have the option to participate side-by-side with PeerStreet in a pari passu position.
Junior Liens
Allowed with Intercreditor Agreement
Recourse
Recourse in the form of a personal guaranty is required for entity borrowers and at least one guarantor must be an owner of the borrower entity. Individual borrowers are allowed.
Multi-collateral
Subject to all properties conforming to PeerStreet’s guidelines.
Loan Processing
Loan Documents
Lender must use documents provided or approved by PeerStreet.
Valuation
PeerStreet requires a valuation on all properties. Acceptable forms include appraisals and interior BPOs (Broker’s Price Opinion). Use of PeerStreet’s approved valuation vendors is highly recommended. Contact your Account Manager for details.
Purchasing
PeerStreet purchases funded loans where lender keeps points and fees.
Construction Management
PeerStreet requires 3rd party construction management to oversee the draw process, including inspections. Upon submission of draw requests, PeerStreet will collect 3rd party progress inspection reports, lien releases, and receipts in order to determine approval of draw request.
Servicing
PeerStreet purchases loans on a servicing-released basis and retains a sub-servicer.
Borrower/Guarantor Characteristics
Borrower/Guarantor Credit Score
Minimum credit score of 600 (525 to 599 considered on a case-by-case basis) PeerStreet will re-run credit if over 120 days post origination of loan.
Bankruptcy
Considered with mitigating circumstances. However, the borrower and/or guarantor must be at least one year removed from discharge or dismissal.
Borrower/Guarantor Track Record
At least one previous project is required (exceptions on a case-by-case basis). No track record is required for Buy-to-Rent and Bridge loans.
OFAC (Background) Checks
Required for all borrowers and guarantors
Borrower Eligibility and Documentation
Borrower must be a U.S. domiciled company, trust, U.S. citizen or permanent resident alien.
Title and Property Insurance
Title Insurance
ALTA 2006 form is required with all appropriate endorsements. The title insurance policy must run to lender’s successors and/or assigns. Minimum coverage is 100% of the loan amount.
Property and Casualty Insurance
Coverage must be the lesser of replacement cost or loan amount. Lender must be listed as mortgagee or loss payee. Coverage must include fire and extended perils, and other hazards customary to the area. Flood insurance is required for FEMA special flood hazard areas.
Download the Single Family Residence Credit Box PDF (104kb)
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