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Welcome to Frequently Asked Questions
Application timeline
This is a sample timeline and our goal is to fund as quickly as possible. If anything can be completed faster we will strive to make that happen.
What does your $550 evaluation include?
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1. |
Interior / Exterior Repair Report |
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Identify the current condition of the property |
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b. |
Identify the items that should be repaired in order to make it saleable in FHA condition |
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c. |
Identify the Estimated days to repair items listed. |
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d. |
Identify the market time price, 90 day sales price and average days on market for area |
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Virtual Drive–By Report – Evaluator who does virtual drive by on the property. Walking the streets as well as a bird's eye view. Reviewing the area and comparable sold's. He will then analyze the reports and provide feedback on the property. |
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Rural/Agriculture |
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b. |
Near Commercial Corridor |
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Near Busy Street/Freeway/Highway |
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d. |
Less than 900 Square Feet |
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e. |
Less than 2 Bed |
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f. |
Single Family |
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g. |
Near or On Rail Road Tracks |
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h. |
Recreational or Cabin |
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i. |
Notes Section – Any suggestions for your property |
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j. |
Findings – Will identify whether you will be denied, need to provide 30% down or whether we suggest you move forward with the loan |
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3. |
Repair Report |
| a. | Unbiased opinion of the repairs needed on the home |
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b. |
Cost estimates for the work to be completed with Repairs and labor costs |
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c. |
Grand Total of all repairs costs needed |
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Questions Search
You can enter any word or phrase to find answers to any questions you may have. It will search and give you every answer or question that involved the Keywords you have typed.
In fact if you have a question that is not answered on the web site simply complete the form (Click Here) and we will not only answer your question but we will mail you a $100 Wal-Mart Rebate Card as our way of saying thanks. So take a few minutes and go over the details below.
You can search by keyword below for your specific Question.
We only fund investors. If you are a homeowner looking for financing we cannot help you!
FAQ Categories
- PARTNER WITH A PRO
- LOAN TO VALUE
- MORTGAGE BROKERS
- SPECIFIC QUESTIONS
- APPLICATION
- COMMERCIAL LOANS
- TRUSTEE SALES/ SHORT SALES/ BANK OWNED PROPERTIES REO
- 2ND MORTGAGES
- ABOUT DHM
- WHAT WE NEED FROM BORROWER
- HOW FAST TO FUND
- PROPERTY VALUES and EVALUATIONS
- LOAN AMOUNTS
- REHAB FUNDS
- BORROWER QUALIFICATIONS
- PREQUALIFYING FOR LOAN
- INSTANT DEAL EVALUATOR
- WILL YOU DO REFINANCE?
- PROOF OF FUNDS
- REPAIRS
- PROPERTIES
- DOWN PAYMENT REQUIRED
- PROCESS TIME FRAMES
- AREAS WE SERVE
- COST/ FEES/ TERMS
- HOW IT WORKS
- IS THIS FOR REAL?
All Frequently Asked Questions
First you need to contact the portfolio manager prior to the time your loan expiries. An extension/ forbearance will be considered if - 1. the lender approving that all terms of the Note and Security Instrument has been met 2. Lender verifying the property is listed with a Real Estate agent not greater than the ARV given at the time the loan was given and (for a second extension to be granted the list price must not be greater than ARV minus 5% 3. Proof of current insurance on the property 4. the borrower paying 1% of the loan balance in an extension fee for a 30 day delay. In addition to the extension fee we require a payment equal to 30 days interest. The extension/forbearance fee and 30 days interest must be paid for each 30 day extension.
These funds are required to be at the closing agents office prior to the time of us completing docs and sending the funding wire. Once we have received confirmation that funds are at the closing agents office, we will typically within 48 hours send docs and send the funding wire to fund the loan.
NO. When you are doing the rehab/repair work yourself, what that allows you to do is put sweat equity into the property. Remember, though your time is worth what you put for a value on it; if you are doing the rehab/repair work yourself you will want to make sure that it is done in the same professional manner that a licensed contractor would do the work. Even though you may have bids from, and are using a licensed contractor, we have to use the estimated costs determined by the independent evaluators, or estimators, as the contractor that provided you with the estimates have a vested interested in the property if they do the work. DHM is a lender, not a contractor, so if for some reason we would end up with the property and the repairs were not done to the property we would have to hire a licensed contractor to complete the work in order for the property to be listed and sold in average condition to qualify for FHA financing.
The rehab costs are determined by the independent evaluators or estimators who view the property and are familiar with what is needed to bring a property up to average condition. The evaluators – estimators are instructed to determine what rehab/repairs are needed to bring the property up to average condition so that it will qualify for FHA financing. The cost of the rehab/repair is based upon a licensed contractor doing the work. Some properties will need more work than others. When you are reviewing a property and determining what repairs need to be made it is best to base your estimated costs as if a licensed contractor would be doing the work. It never hurts to estimate high and give yourself cushion for cost overruns. This also will help when you are negotiating with the seller.
No. Once you have submitted your application and paid the evaluation fee, we send the evaluators out and request they return their reports within 48 hours of submittal. The money is gone after that point. The fee is for independent evaluations to be done on the property. We cannot waive this fee or get around it. We have to get the independent evaluations done. Until the evaluations are done we cannot make any commitment on the loan. You do not need to have the property under contract to obtain a loan amount when going through the application, however, you must be able to have access to the interior of the property. We highly suggest, if you are unsure whether you are paying what you should for the property, to utilize the tools we have to assist with this. One of those tools is the Estimated Value Report. This report, is computer generated, so it will be unbiased in its opinion. It will return a value to you within 15%, plus or minus on the properties worth. This will give you leverage when putting in an offer to purchase a property as you will then know if the price you are setting is a good deal or not. We look forward to working with you.
We do look at depreciation as a factor. I think as a Real Estate Investor you have to; to be successful. We basically look if the area has depreciation in the past year we will still loan on the property; but we will analyze how depreciation has and is effecting the values in the area. If it is determined that depreciation has a factor in the area we will adjust the value of the property to reflect the market conditions.
Yes, you can purchase a property and resell it without doing any rehab. You just have to make sure you are buying it right because if you are not doing any rehab the value will be based on an As Is Value. In that case you may be required to put some money down just depends on how good the purchase price is. Good luck.
DHM does not provide financing for properties that would be considered Unique. Below are properties that are considered non-financable -
All properties considered 900 SF or less, properties with less than 2 beds, on or near a commercial corridor, around or across from rail road tracks or major street, road, highaway, and / or freeway system. rural, agricultural or small farming communities, recreational properties or cabins, manufactured homes, mobile homes, duplexes, triplexes, and 4-plexes, commercial properties, lots, raw land, construction, counties with population under 75,000, major renovation such as foundation, trusses, additions, or changes to the structural integrity of the house.
NOTE: There is an exception on foundation issues. DHM will consider funding a property that has foundation issues but is subject to a structural engineers report and an estimate of repair cost by a licensed foundation contractor. Upon receipt of these items, DHM will review and make a determination if financing can be obtained on the property.
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All properties considered 900 SF or less, properties with less than 2 beds, on or near a commercial corridor, around or across from rail road tracks or major street, road, highaway, and / or freeway system. rural, agricultural or small farming communities, recreational properties or cabins, manufactured homes, mobile homes, duplexes, triplexes, and 4-plexes, co-ops, commercial properties, lots, raw land, construction, counties with population under 75,000, major renovation such as foundation, trusses, additions, or changes to the structural integrity of the house.
NOTE: There is an exception on foundation issues. DHM will consider funding a property that has foundation issues but is subject to a structural engineers report and an estimate of repair cost by a licensed foundation contractor. Upon receipt of these items, DHM will review and make a determination if financing can be obtained on the property.
No, we do not require reserves. However, when you are doing your due diligence on the property, if we find that we offer the loan to you and the difference in what we offer versus what you are buying the property for would require you to put some money down, then we would request a proof of funds.