Edgeworth Private Lending

 

The section below briefly describes our lending criteria.  To discuss the criteria in greater detail you can contact us at 540-498-7984 or complete the online Loan Request Form.

  

Our programs are appropriate for investors that want to buy and sell residential properties.  While we consider a borrower's credit history and ability to repay, our primary criteria for evaluating a loan request is the value of the property.  Borrowers are not required to submit financial statements or income tax returns.   

 

We lend on single family houses in the Fredericksburg, Virginia region.  We do not lend on mobile homes, condominiums, vacant land, commercial property or owner-occupied dwellings. 

 

We will lend up to 65% of the 'after repair value' of the home.  For example, if the 'after repair value' of a property is $200,000, we will lend up to $140,000. The 'after repair value' of a property is the price that it should sell for once it is repaired and is based on sales of similar properties in the same general area.  

 

We may lend up to 100% of the purchase price of the home, depending on the purchase price and after-repair value of the property.  

 

The amount available to the borrower to close the loan is the loan amount less the estimated cost to repair the property.  (The estimated repair costs are verified by an Edgeworth Private Lending representative.) The funds available to repair the property are held in a reserve account.  Borrowers access the reserve funds as work is completed according to a pre-determined draw schedule.   The following example illustrates the reserve amount and the amount available for closing on a property with an 'after repair value' of $200,000:  

 

   Loan Amount ($200,000 x 65%)             $130,000

   Less: Cost to Repair (held in reserve)     $  18,000

   Funds Available for Closing                    $112,000

 

We only lend on properties that we can hold the first lien on the property.

 

To ensure the closing process is complete, timely and accurate we require borrowers to use the attorney selected by Edgeworth Private Lending to close the loan and record the deed.  In order to close the loan the borrower must have in place a title policy and a hazard insurance policy on the property.