FAQs - RCN Capital

FAQs

About RCN Capital

What are the standard terms at RCN Capital?

RCN Capital’s terms vary by loan program. For loans on 1-4 family non-owner occupied residential properties, RCN offers financing for 12 to 18 months. Loan amounts range from $50k to $2.5M+ and RCN will lend up to 85% of the purchase price, up to 75% of the After Repair Value, up to 65% Refinance & up to 50% Cash-Out. For loans on small-balance commercial properties, RCN offers financing for 18 months. Loan amounts range from $100k to $2.5M+ and RCN will lend up to 70% of the purchase price, up to 50% Refinance & up to 50% Cash-Out. With most loans, only interest is charged during the term of the loan, with the principal due at maturity.

What is the relationship between RCN Capital and Rehab Cash Now?

Rehab Cash Now® is RCN Capital’s flagship loan program. Short-term funding for the for the acquisition of non-owner occupied 1-4 family residential properties is available through this program.

RCN Capital's Loan Programs

What are the standard terms at RCN Capital?

RCN Capital’s terms vary by loan program. For loans on 1-4 family non-owner occupied residential properties, RCN offers financing for 12 to 18 months. Loan amounts range from $50k to $2.5M+ and RCN will lend up to 85% of the purchase price, up to 75% of the After Repair Value, up to 65% Refinance & up to 50% Cash-Out. For loans on small-balance commercial properties, RCN offers financing for 18 months. Loan amounts range from $100k to $2.5M+ and RCN will lend up to 70% of the purchase price, up to 50% Refinance & up to 50% Cash-Out. With most loans, only interest is charged during the term of the loan, with the principal due at maturity.

How do you determine the loan amount?

RCN Capital is an asset-based lender and loan amounts are based on the value of the real estate asset that is being pledged as collateral. For 1-4 family non-owner occupied residential properties, RCN will lend up to 85 % of the purchase price, up to 75% of the after repair value, up to 65% refinance & up to 50% cash-out.

What states do you lend in?

RCN Capital is able to lend to most states in the U.S. with the exception of Utah, South Dakota, Minnesota and Oregon.

What type of documentation is required for the loan application?

RCN requires basic documentation to underwrite the borrower and the property. This includes an application; authorization to run a credit report and background check; authorization to obtain IRS tax transcripts; copies of bank statements (proof of funds); property appraisal; copies of leases, if appropriate; renovation estimates; and documentation on the business entity.

Why do I need to provide my tax transcripts?

Tax transcripts are part of our fraud prevention policy. We at RCN also firmly believe in everyone paying their taxes.

Do you have a minimum FICO score?

RCN Capital’s After Repair Value loan program as well as our loan program for commercial properties have a minimum FICO requirement of 600. For other loan programs, RCN does not have a a set minimum but the borrower’s credit score is taken into consideration when underwriting the loan. RCN reviews the individual’s history to determine if there is a repeating pattern of poor financial management or if an isolated incident affected the individual’s credit. We also look at the borrower’s credit in terms of the exit strategy. If the borrower intends to buy and hold rather than fix and flip the property, we will pay closer attention to FICO scores.

Are there any upfront fees or costs?

RCN does not charge any upfront fees during the pre-approval and approval process such as an application fee. However, the borrower is responsible for third party fees such as appraisals or project feasibility studies.

Do you have a prepayment penalty?

At RCN Capital, there are typically no pre-payment penalties on our loans. Interest is charged during the term of the loan, with the principal due at maturity. If a borrower can pay off the loan before the term is up, that is completely acceptable.

What can I use as collateral for my loan?

RCN Capital will consider most 1-4 family non-owner occupied residential real estate for loan collateral. RCN will also consider mixed-use properties, office buildings, apartment complexes (5 units+) & retail spaces.

Do you fund the rehab costs?

RCN Capital now offers an After Repair Value loan program for 1-4 family non-owner occupied residential properties. RCN will lend up to 85% of the purchase price and up to 100% of the renovation costs, not to exceed to 75% of the after repair value.

What is RCN's maximum LTV (Loan-to-Value) based on ARV (After Repaired Value)?

RCN Capital is an ARV Lender. Our ARV Loan Program provides up to 85% of the purchase price with an LTV not exceeding 75% of the After Repair Value.

Can I use RCN to buy my home?

RCN Capital is a commercial lender meaning our loans are used for business purposes, rather than individual or personal interests. We do not provide funding for the purchase of any owner occupied residential properties. Our loans are strictly backed by non-owner occupied residential and commercial properties, and are issued to a business entity.

RCN Capital's Loan Process

What type of documentation is required for the loan application?

RCN requires basic documentation to underwrite the borrower and the property. This includes an application; authorization to run a credit report and background check; authorization to obtain IRS tax transcripts; copies of bank statements (proof of funds); property appraisal; copies of leases, if appropriate; renovation estimates; and documentation on the business entity.

Why do I need to provide my tax transcripts?

Tax transcripts are part of our fraud prevention policy. We at RCN also firmly believe in everyone paying their taxes.

Broker Referral Program

Do you pay referral or finder's fees?

RCN Capital will gladly compensate you for a referral that results in a closed loan, pursuant to local rules and regulations. It is up to you to determine whether you are legally able to accept a referral fee.

How do I sign up for RCN Capital's Broker Program?

If you are interested in receiving more information about RCN Capital’s Broker Program, please fill out the contact form on the “Brokers” tab on our website or complete and send in a Broker Registration Package.

As a broker, how do I get paid?

Broker fees are disclosed upfront on the commitment letter, in a transaction specific agreement with RCN Capital and on the HUD. A check is sent directly to the broker at closing.

Industry Terms

What is a hard money loan?

Hard money loans are a specific type of asset-based loan that is typically secured by real estate. At RCN Capital, loans are backed by non-owner occupied residential real estate or small balance commercial real estate. In some cases, multiple non-owner occupied properties are cross-collateralized in order to secure the needed loan amount.

What is a commercial loan?

Commercial loans are used for business purposes, rather than individual or personal interests. At RCN Capital, we only make commercial loans that are secured by non-owner occupied residential and commercial real estate.

What is a bridge loan?

A bridge loan is typically interim alternative financing used by a business until more conventional financing is secured. The bridge loan may also be used to cover short-term cash-flow issues.

What can I use a line of credit for?

A line of credit can be used for a variety of purposes, such as the funding of construction phases, specific business purchases or addressing cash flow needs.