Loan Rates & Terms

Referring broker compensation can match, but not exceed, the origination fee charged by Persevere Lending.

 

Second position loans are contingent on the following factors:

▪ Balance Ratio (1st to 2nd) can not exceed 4 or 5 to 1

▪ The 1st loan must be conventional with a low fixed rate, and in good standing

▪ Maturity date of the 1st must be well beyond our maturity

 

Closing Costs:

In addition to the origination fee, our fixed closing costs total $3,450, and covers; documents, processing,

administrative, insurance review, credit and background reports, and servicing set up. Does not include Title & Escrow

fees. Management Fee for construction loans is between 0.25% and 1.0% of the hard budget.

The costs of any 3rd party report must be paid up front and is a separate cost in addition to the origination fee, closing

costs, and title and escrow fees.

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This matrix is intended to provide a preliminary baseline for general reference. The rates & fees, as well as the

loan term, are not set in stone and are subject to additional modifications that could result in an increase or

decrease. We will evaluate the circumstances of every deal independently. The financial strength of the

borrower, their creditworthiness, their overall qualifications, and the quality and desirability of the proposed

collateral, remain the primary determinant factors of our final proposal. While most applicants are evaluated

on a SISA basis, requests for higher LTV or lower rates and fees may trigger the need for additional

underwriting of their debt service capacity and exit strategy, and financial and income documentation.

All loans are structured as interest only, written for 12 months with a balloon payment due at maturity.

Rates and fees, regardless of LTV or credit scores, may be higher for rural or unique/special-purpose properties that

inherently are less marketable collateral.

 

General Construction Loan Terms

▪ Rates and Fees based on ARV (After Repaired Value) LTV/CLTV

▪ LTC (Loan-To-Cost) threshold is 80%

▪ Construction Management Fee = .50% to 1.0% of the submitted hard budget

▪ Disbursements made in accordance to submitted Draw Schedule and in adherence to our Construction

Management Addendum

▪ Required per disbursement: Inspections, Waivers & Releases, Budget & Permit adherence verification

 

Loan Extensions:

We can provide up to three 6-month extension options. Extension approval is contingent on: stable market value,

satisfactory payment history, and current taxes & insurance. The rate will be adjusted to Prime + the margin calculated

at origination (Floor = Note rate). The extension and modification fee is half of the original origination fee (based on

UPB) + $695 processing fee.

 

Footnotes:

*1. C/O or R/T Refinance

*2. Purchase with Cash Down Payment

*3. Based on the borrower’s middle score on their tri-merge credit report