We offer this short description of our program to answer most of the questions that get asked concerning our program.

1. How does the program work? Back to top
We loan money in metropolitan areas to people who buy houses, fix them up, and sell or refinance them. We work very hard to fund quickly so that you can demand large discounts from your sellers (many people will sell cheaper if they can get their money in a few days instead of a few months). We normally lend only on single-family residential houses. Our program is very good for people who can buy right, fix a property up quickly, and then get it sold or refinanced. There are four easy steps to our loan: get a contract, see how much we will lend, fill out the applications, fill out the property evaluation, and close the loan.

We have one simple form for you to fill out to apply for a loan. You can either fill it out online or print and fax it to us or you can fill it out and submit it online. Components of the application are as follows:

• Credit authorization
• Borrower information
• Property Evaluation

The Credit Authorization information is used to pull credit, however, we generally just use the report to weed out those individuals who obviously never intend to pay anyone. We primarily evaluate a deal on the merits of the property.

The Borrower Application information is used to get a general idea of your experience level. We need two month's bank statements showing that you have some contingency money available if your project runs into any snags.

The Property Evaluation Information identifies the important points on your deal, how much you are paying, how much is needed in repairs, how much the house will sell for, and a list of some of the other costs. This will give you a good idea of how much profit is in the property for you. After submitting these forms, you can expect a preliminary answer within one business day and funding within a week, if everything is ready and the title company has their work done.

2. What is the interest rate? Back to top
It can vary based on credit, experience, and the property itself. The average interest rate is 13.75%. Payments are interest only.

3. What is your maximum loan-to-value? Back to top
Onward Financial has programs that loan up to 75% of the after-repaired-value (ARV) of the house. However, most loans are done at or under 70% Loan-to-ARV.

4. What is the term of the loan? Back to top
Our standard loan terms are twelve months, however, they can vary anywhere from three months to twelve months.

5. What are the closing costs? Back to top
Closing costs include points (four points on average), inspection fees, and various other expenses including expenses for a credit check and flood zone search.

6. Do you fund the rehab? Back to top
Absolutely. We require an itemized list of work to be performed on the property from which we create a draw schedule. We release rehab funds as the work is completed. We do not pay in advance.

7. What is the minimum credit score required? Back to top
A minimum credit score of 620 is required to sign for a loan. See Fico Scores for more information.

8. Do you pull my credit report for each loan? Back to top
No. Only for the initial approval and then periodically to update your file.

9.How do you decide how much to loan? Back to top
We will fund up to 100% of your purchase and renovation needs as long as they don’t exceed 70% to 75% of the property's ARV.

10. Where do you loan? Back to top
We loan in cities and counties with at least 300,000 people, and, where we are licensed to do business. Exceptions to the population rule are sometimes made to those with A credit and money in the bank or borrowers with whom we have an ongoing relationship.

11. What states do you loan in? Back to top
We currently loan in Alabama, Georgia, Florida, Minnesota, South Carolina, Tennessee and Wisconson. Loans for other states will be considered only for clients with "A" credit and on a case by case basis.

12. Do I need an appraisal? Back to top
Yes, we order an independent appraisal of your deal which give us an ‘as is’ and an ‘after repaired’ value. We require interior photos and a ‘days on market analysis’. Your repair plan appears as a ‘cost to cure’ in the addendum. We do not allow drive-by appraisals.

13. Do you require inspections? Back to top
We require appraisals on properties in most cities, and, we require inspections including the interior before funding. Each draw request will require an inspection to ensure the work is completed and in a good and workmanlike manner. See our Draw Procedures for more information.

14. Do I need to put any money down, or, have any money in the bank? Back to top
Yes, in most instances a minimum of $5,000 down is required. Additionally, you need to have about two months of payments in reserve after closing.

15. How long does it take to fund? Back to top
We can fund immediately when we have the appraisal, a title policy, and a letter from the title company that they will follow our closing instructions.

After submitting an application, you can expect a preliminary answer within 1 business day and funding within 48 hours of receiving the information we need from the title company.

16. How many loans can I have open at any one time? Back to top
There is no set limit. As a direct lender, we can potentially provide unlimited funds to any one borrower and are not subject to any arbitrary pre-determined restrictions. We will increase your borrowing levels as you prove your ability to manage multiple projects.

17. How much will my payments be? Back to top
It is simple interest, interest only.  To figure your monthly payment simply multiply the rate by the amount of your loan (including the fees the lender rolled in) and divide by 12. 

18. Should I wait until I have a deal before submitting my application to Onward Financial? Back to top
No. We recommend that you get your application in as soon as possible. This will prevent any delays in closing your loans.

19. Will you finance commercial properties? Back to top
Yes, although on different terms from residential rehab.

20. Will you finance apartment buildings? Back to top
Yes, although on different terms from those addressed here.

21. Do you allow interest to be deferred to the end of the loan?
No. We require interest only payments for the term of the loan. Back to top

22. Do I have to have rehab experience? Back to top
While we prefer borrowers with rehabbing experience, we recognize that all real estate investors have to start somewhere. If you are a first time investor with strong credit and financial background, we will seriously consider your application.

23. What paperwork do I need to do? Back to top
Click here to apply. Fill out our application. We also need your last two bank statements, last two W-2s or 1099s, last two tax returns (first two pages only), and a copy of your most recent pay stub.

24. Do you loan on rural property? Back to top
No. The properties we loan on must be in a county or city with a population of at least 300,000 people. Exceptions sometimes made for those with "A" credit.

25. Do you loan on rental property? Back to top
We can loan on rental property, but you will need to have the property refinanced before your loan term expires.

26. Do you lend on properties in the flood zone? Back to top
No.  

27. Can I get an extension on the term loans? Back to top
If payments are current and repairs are complete we will provide an extension for two months. The cost is two points, a $350 admin fee, and an inspection fee of $450. We can collect these amounts at loan payoff.

28.  Do you have a program for new construction? Back to top
Yes.  Please contact us and we will provide program information on our current new construction products.