Standard Interest Rate and Fees
Loan terms are determined on a case by case basis. However, the following list of terms is our standard agreement and generally represents the minimums.
Oakwood Lending can also provide transactional funding or "double closes". To inquire about a transactional loan, please contact us.
- The program is for commercial use, not personal use. Loans are only to entities.
- 1 to 4 units. Primarily single family homes.
- Interest Rates: As low as 12%.
- Points: Minimum 2 points paid at loan origination. The lender will wire the principal loan amount less the points to the closing attorney.
- Minimum Interest: $1,200 including points and interest. Only applicable if points and interest come to less than $1,200.
- Oakwood Lending must have a1st position Deed of Trust on the collateral.
- Oakwood Lending must be the first payee on the insurance policy. The policy must be issued and paid for 6 months or the term of the loan, whichever is longer.
- Oakwood Lending must be named on the Title Insurance policy.
- $100 fee at termination of loan to cover wire fees and satisfaction of liens.
- Maximum Loan Amount: $300,000.
- Minimum Loan Amount: No minimum loan amount but note the minimum points and minimum interest described above.
- Term: Maximum 6 month loan with an option for a 3 month extension. No pre-payment penalty after month 2.
- Extension: 3 months with 2 additional points, lender approval, and the current term being paid to date with no late payments.
- $35 late fee for any interest payments received after the due date.
- We do not require Personal Guarantees. We will require a credit check during the new client application process.
- New Clients must pay off the first loan before a second loan will be funded.
- Max Financing 70% LTV
- Condominiums and town homes require additional discussions. Keep in mind that some HOAs do not allow rentals.
- Clients may have partners, but must be the controlling partner.
- Any other fees associated with the closing of the loan (e.g., attorney fees) are the borrower's responsibility.
- Promissory Note will spell out specific details.
If you have questions, feel free to contact us.
By requesting a loan, you are certifying that the intended purpose of the loan is for business use only, not personal use. You cannot live in the home or have family members living in the home. We are not licensed to lend to Consumers. Rates vary based on the level of risk. The information above is for illustration purposes. The obligation of the parties is determined solely by contractual agreement.