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Click on a question below to be directed
to the answer:
1. Can I e-mail or fax my application
to become an approved borrower?
2. Can I charge my credit card for the application fee?
3. Can a sole proprietor get a loan?
4. Can a corporation get a loan?
5. Can a partnership get a loan?
6. Can an LLC get a loan?
7. Can a trust get a loan?
8. How much down payment do I need to have at closing?
9. When is my first payment after closing?
10. Do you charge monthly interest on
the full loan amount from the loan date?
11. Is there a minimum interest charge?
12. What if I want to use my own money for the rehab?
13. How long does it take to get a draw payment?
14. What if I cancel an inspection?
15. Why do you include the full labor cost in the Rehab Reserve
when I am going to do the work, or my friends or relatives are going
to help out and work for free?
16. Will you accept inspection reports from other inspectors?
17. I already have an appraisal on the house, why do you need another
one by your designated appraisal firm?
18. Do you allow the monthly interest payments to be deferred to
the closing of the sale or refinancing of the house?
19. Do you require a survey?
20. Do you lend on a property in a flood zone?
21. Do you require Texas Windstorm Insurance Association coverage?
22. Do you lend on properties on the City of Houston’s dangerous
building list?
23. Do you lend money at the foreclosure
auction?
24. Do you do refinances?
25. Can I put a tenant in the house?
26. Can anyone occupy the house?
27. Will you make a loan to fix up a house if we plan on living
in it?
28. Do you make new home construction loans?
29. Do you arrange for long-term mortgage loans?
30. Do you help borrowers find houses?
1. Can
I e-mail or fax my application to become an approved borrower?
No, the application must be received with a check or cash for the
$25 application fee. (Back to Top)
2. Can
I charge my credit card for the application fee?
No. (Back to Top)
3. Can
a sole proprietor get a loan?
Yes. You will need to furnish us with a copy of your social security
card and drivers license. Title can’t be held under the name
of a dba because it is not a legal entity in Texas. (Back
to Top)
4. Can
a corporation get a loan?
Yes. The president of the corporation must make loan application
and be the guarantor for the loan. You will need to provide CRC
with the corporation’s Articles of Incorporation and Certificate
of Incorporation and, if applicable, an Assumed Name Certificate
filed with the Secretary of State if you are operating the corporation
using a name other than the legal name of the corporation. (Back
to Top)
5. Can
a partnership get a loan?
Yes. The partner who will be dealing with CRC must make loan application
and be the loan guarantor. You will need to give CRC a copy of the
partnership agreement. (Back to Top)
6. Can an
LLC get a loan?
Yes. The member or manager who will be dealing with CRC must make
loan application and be the loan guarantor. You will need to provide
CRC with the Articles of Organization and Certificate of Organization.
(Back to Top)
7. Can
a trust get a loan?
Yes. The beneficiary of the trust must make loan application and
be the guarantor for the loan. You will need to provide CRC with
the executed Trust Agreement. (Back
to Top)
8. How
much down payment do I need to have at closing?
If the loan amount covers the purchase price, rehab reserve and
acquisition costs to be paid at closing, you will not need to make
a down payment. If, on the other hand, the purchase price, rehab
reserve, and acquisition costs to be paid at closing are greater
than the loan amount, you will need to bring the difference to closing
in the form of a cashier’s check. (Back
to Top)
9. When
is my first payment after closing?
If you close between the 1st and 19th of the month, your first interest
payment will be due on the 1st day of the following month. If you
close between the 20th and end of the month, preliminary interest
for that month will be collected at closing and your first payment
will be due on the 1st day of the 2nd month following closing. (Back
to Top)
10. Do
you charge monthly interest on the full loan amount from the loan
date?
No. We only charge interest on loan amounts that have been disbursed
to you or on your behalf (i.e. you start paying interest on draw
payments when the money is wired to your bank account). Some lenders
charge interest on the loan amount even if they hold back the rehab
funds. (Back to Top)
11. Is
there a minimum interest charge?
No. You only pay interest from the date loan funds are advanced
to you or paid on your behalf to the date you repay the loan. (Back
to Top)
12. What
if I want to use my own money for the rehab?
You may use your own money for the rehab work, however, the lender
will still holdback the rehab funds at closing as determined by
the inspector. If you use your own money and do not take draws,
you will only pay interest on the initial advancement. (Back
to Top)
13. How
long does it take to get a draw payment?
We wire transfer draw payments to your bank the day after the draw
inspection. (Back to Top)
14. What
if I cancel an inspection?
A draw inspection fee will be charged if an inspection appointment
is canceled after 5:00pm on the day prior to the inspection appointment,
or if the inspector does not have access to the interior of the
house to do a draw inspection. (Back
to Top)
15. Why
do you include the full labor cost in the Rehab Reserve when I am
going to do the work, or my friends or relatives are going to help
out and work for free?
If something happens to you, and we have to foreclose on the property,
you and your
friends or relatives won’t want to work for CRC for free to
finish the job. (Back to Top)
16. Will
you accept inspection reports from other inspectors?
No. Some inspectors low ball the cost of the rehab (intentionally
or unintentionally). We feel strongly that you should know what
it will cost to bring the property to a good, marketable condition
at contractor pricing so you can make an informed business decision
whether to buy the property. (Back
to Top)
17. I
already have an appraisal on the house, why do you need another
one by your designated appraisal firm?
It is one of CRC’s ways of protecting against fraud. (Back
to Top)
18. Do
you allow the monthly interest payments to be deferred to the closing
of the sale or refinancing of the house?
No. (Back to Top)
19. Do
you require a survey?
Normally no. If, however, the property legal description is in metes
and bounds or there is obvious encroachment issues resulting from
additions or buildings erected on the property, we will require
you to obtain a survey. (Back to Top)
20. Do
you lend on a property in a flood zone?
Yes, but we require a flood insurance policy. (Back
to Top)
21. Do
you require Texas Windstorm Insurance Association coverage?
Only if your property is in Galveston or Brazoria counties or east
of Highway 146 in Harris county and your hazard insurance policy
excludes windstorm coverage in those areas. (Back
to Top)
22. Do
you lend on properties on the City of Houston’s dangerous
building list?
No, because the City of Houston has a lien on the property and we
would not be in first lien position. If you are interested in buying
a house that you see is boarded up, the first thing you should do
is call the City of Houston, Neighborhood Protection Department
to find out if the property is on their dangerous building list.
(Back to Top)
23. Do
you lend money at the foreclosure auction?
No, but we may be able to refinance the property you purchase at
the auction. We do lend on pre-foreclosure purchases and purchases
from the lender who has foreclosed on the property. (Back
to Top)
24. Do
you do refinances?
We handle refinances on a case-by-case basis. (Back
to Top)
25. Can
I put a tenant in the house?
Not while our loan is in force. We’ve seen enough tenants
trash houses that have been all fixed up, which is not good for
you or us. Accordingly, putting a tenant in the house is a default
under the deed of trust. (Back to Top)
26. Can
anyone occupy the house?
Not until our loan is paid off. Doing so is a default under the
deed of trust. (Back to Top)
27. Will
you make a loan to fix up a house if we plan on living in it?
No. We only lend to real estate investors who plan on selling their
houses or refinancing them as rental property. (Back
to Top)
28. Do
you make new home construction loans?
No. (Back
to Top)
29. Do
you arrange for long-term mortgage loans?
No. There is a potential conflict of interest in handling both short-term
loans and
long-term loans. (Back to Top)
30. Do
you help borrowers find houses?
CRC does not have a list of houses for sale. However, the material
describing many ways to find motivated sellers is contained under
the heading “Educational Information”. You can download
this material in PDF format. (Back
to Top) |
