Underwriting Process for Funded Loans

Underwriting Process for Funded Loans 

As of April 28th, PeerStreet implemented new underwriting processes in response to our updated credit boxes. We have made important changes to the documents required per diligence stage. Please review to ensure a timely closing of your loan.

Funding Stage:

In order to move your loan from ‘Evaluating’ to ‘Qualified’ all documents must be uploaded.  

If a validation report for valuation is required, the loan will remain in 'Evaluating' until all valuation reports are submitted and a value is designated. Please refer to Exhibit 5 of the Underwriting Standards for more information on the valuation process.

Lender must submit a $250 payment to move the loan out of Evaluating.

• Please note this $250 is separate from any fees that will be incurred if PeerStreet orders a value validation report on behalf of the lender. For more information on the valuation validation requirements, please refer to Exhibit 5 of the Diligence Requirements.

Loan Documents: 

Depending on the origination status of your loan, different loan documents may apply. 

Origination Status: Funded Loans: 

The following documents are required to close a funded loan. Please use this helpful checklist.

• Loan Application
• Social Security Number (SSN)
• Credit Report
• Borrower/Guarantor ID
• Value
• Construction Docs (if required)
  • Draw Schedule
  • Projected Construction Budget (template available on Help Center)
  • Lien Releases
  • Evidence of wire to borrower
    • If construction funds have already been disbursed: 
• Track Record (using template on Help Center)
• Property Management Form/1 Year Bank statement showing rental income (Applicable for Extended Bridge loans only) 
  • Third Party Management Company
  • It is not a 3rd party if a member of the borrowing entity is a member of the property management company
  • Lender must provide combined and condensed bank statements with 12 consecutive months rental deposits clearly outlined
• Most recent Tax Bill
• Rent/Leases (if applicable)
• Borrower financials within 60 days
• Mortgage Statement (for refinances and cash-out refinances)
• Evidence of Insurance 
• PSA with any addendums/extensions (if acquisition)
• Organization Docs 
  • Filed Articles of Organization/Certificate of Formation
  • Operating Agreement/Bylaws
  • Good Standing
  • Evidence of Authority to sign (if applicable)
• Title Docs
  • Closing Protection Letter (not needed if we have Final Title Policy)
  • Preliminary Title Report (with escrow instructions) OR Title Commitment (with escrow instructions)
  • Pro Forma (signed by title officer and removed schedule B1)
  • Marked Up Title Policy (signed by title officer and removed schedule B1)
  • Final Title Policy (signed by title officer and removed schedule B1)
• Signed loan docs 
• Final HUD
• Loan Payment History (if applicable)

Origination Status: Not Funded

• Loan Application
• SSN
• Credit Report
• Borrower/Guarantor DL
• Value
• Construction Docs (if required)
  • Draw Schedule
  • Projected Construction Budget (template available on Help Center)
• Track Record (using template on Help Center)
• Property Management Form/1 Year Bank statement showing rental income (Applicable to Extended Bridge Loans only) 
  • Third Party Management Company
  • Lender must provide combined and condensed bank statements with12 consecutive months rental deposits clear outlined
• Most recent Tax Bill
• Rent/Leases (if applicable)
• Borrower financials within 60 days
• Mortgage Statement
• Insurance Estimate
• PSA with any addendums/extensions (if acquisition) 

Upload Files - Only Applicable to Not Funded

Uploaded documents in this stage will not be reviewed until all tasks have been completed and all documents have been uploaded. 

• Organization Docs 
1. Filed Articles of Organization/Certificate of Formation 
2. Operating Agreement/Bylaws
3. Good Standing
4. Evidence of Authority to sign (if applicable)
• Title Docs
1. Closing Protection Letter (not needed if we have Final Title Policy)
2. Preliminary Title Report (with escrow instructions)
3. OR Title Commitment (with escrow instructions)
4. Pro Forma (signed by title officer and removed schedule B1)
5. Marked Up Title Policy (signed by title officer and removed schedule B1)
6. Final Title Policy (signed by title officer and removed schedule B1)
• Evidence of Insurance 
• Signed Loan Docs 
• Final HUD