Frequently
Asked
Questions

Although most of our loans close within two weeks of initial borrower contact, we can close within 3-4 days if all the paperwork is in order.

We do pay attention to the credit background of the deal principals, however a borrower does not have to have good credit to close with us.

Yes, we do require our borrowers to have some cash to settle, pay interest over the course of the loan and be able to deal with cost overruns with the rehab project.

Having experience is very helpful but we do lend to first time borrowers.

In certain circumstances, yes.

Fill out a pre-qualification form, or call or email us with a basic deal summary. We will review and call you back if you email, or begin the conversation immediately if you call. We will listen to what you are looking for from a lender. We will then ask you some questions about the profitability of your deal, your experience, the value of your real estate asset, available cash liquidity and your payoff plan for our loan. We will tell you approximately how much money we think we can lend to you and at what cost. We will also tell you what the process is to close our loan and all the associated costs.

If we think there is a viable deal, we will ask you if we should order an appraisal for you. The first cost you will incur is the appraisal cost (paid directly to the appraiser) which varies with the type and size of the property. You will not be asked for any money from us until we send you a term sheet outlining the entire deal structure and all deal costs.

We do not require any initial paperwork, however it is very helpful to us if you provide a loan application and a deal summary. Even better if you also have a purchase contract and a proposed scope of work. And better still if you also can provide us with some value comparisons for the target property.

We offer a one year loan that is interest only until maturity and no pre-payment penalty. Learn more about our loan programs.

No, we only lend to some kind of entity – LLC or Corporation.

Yes.

No, we only lend to investors. All of our loans must be non owner-occupied.

No, we are a 1st lien lender only.

Yes, but only to experienced contractors or builders.

We are a direct lender with control of our own funds and decision making.

Within 24 hours if the submission is complete.

Yes, but it depends upon the particular circumstances of the loan and individual circumstances of the borrower.

Yes, after two successful loans the pricing can be reduced assuming the circumstances of the next loan are substantially similar to the first two.

We do not have a minimum credit score, however, we do examine our borrower’s credit, and look at payment patterns. If your credit is poor we will look for other parts of the deal that make it safer for us.

We do not have set income requirements for the borrower, but the borrower must be able to demonstrate the ability to pay scheduled interest.

Yes.

Yes, but only if you do not live in the house and have no intention of ever living in the house.

$75,000 – $50,000,000

No, we lend 80-85% of purchase and rehab costs up to a maximum of 60%-65% of after rehab value (ARV).

Yes. But we examine carefully your scope of work and draw schedule.

We concentrate on both single and multi-family residential real estate. We also lend on mixed use commercial properties with a residential component.

We do not lend on primary residences, co-ops, raw land, mobile homes, or extremely rural properties. We lend when we can value the asset with a high level of confidence.

You will be receiving information in the mail from our servicer, FCI Loan Services, within a few weeks of loan closing. You will be making your monthly interest payments directly to FCI and they will be sending you monthly statements.

FCI will send you information on how to create an account on their website and let you know the many convenient ways you can make your payment each month.  The safest and most convenient method of payment is ACH, a monthly auto debit directly from your bank account. You should have already received the ACH Customer Authorization form from our Processing Team, but if you haven’t already filled it out and returned it to us, FCI will be sending you one as well which you can return directly to them.

*If you have a construction loan put ‘Various’ in the Monthly Payment Amount field as your interest payment will change as you draw down your loan.  FCI will send you notifications each month regarding the new payment amount and debit the proper amount of interest from your account.

If you need to reach out to FCI sooner, their customer service phone number is 800-931-2424.

If you wish to mail your payment the address is:
FCI Lender Services
PO Box 27370
Anaheim, CA 92809-0112
* Please note your loan number on any payment or inquiry that you make to FCI. If you don’t know your loan number, you can find it in your borrower portal account.

When you are ready to schedule your first draw inspection you may do so through your borrower portal account or by emailing a request to draws@ablfunding.com and and copying your Loan Officer. Please be sure to reference the property address on this email.

We will have the appraiser/inspector contact you to make an appointment to document the improvements you’ve made to the property.  We will review the inspection report and if the work completed is consistent with the relevant draw we will release the draw money to your entity’s bank account.  This draw process can take anywhere from 3-5 business days depending on your and the appraiser’s schedules, therefore, It is best to schedule the inspection several days before you feel you will need the draw.

When you are ready to pay off your loan you may send a payoff request through your borrower portal account or by sending an email to payoffs@ablfunding.com. Payoff requests can take up to 5 business days so please consider that as you near the closing date. When you make the request be sure to include the property address in the subject line and the closing date in the body of the email.