Eligible Borrowers

The property is the primary collateral for each loan. You don’t need to furnish financial statements or income tax returns to get a loan. However, your credit and ability to repay the loan are both considered in approving you as a borrower. If you would like to become an approved borrower, simply submit an application. Once you are an approved borrower, Greenbriar Lending will be able to provide you with a pre-approval letter to submit when making offers.

Eligible Properties

We lend on single family houses in Northern Virginia, Maryland Washington DC that appraise for $100,000 or more on an “after repair” basis. We do not lend on manufactured homes, condominiums, vacant land, commercial properties, mixed-use properties, multi-unit properties, or houses being moved to a new location.

Loan Amount

We lend up to 65% of after repair value. Our formula for lending is simple. We take the after repair exit price and multiply that by 0.65, we then subtract the repair costs needed and lend that amount. Repair costs can be lent by Greenbriar Lending LLC but MUST be held in escrow and reviewed for each draw. Here is an example: We recently had a client who contracted a home for $180,000. Fully repaired the home was worth $300,000. Therefore, its after repair max loan was $195,000 (65% of the $300,000 exit price). The home needed $50,000 in repairs. Our maximum loan was $195,000 with a $50,000 construction escrow. Our borrower opted for this program and therefore received a core loan of $145,000 at the table. The borrower brought the necessary funds to closing and purchased the home. Ultimately, the home sold for over $325,000 and our borrower made nearly $75,000. This borrower has returned several times. At Greenbriar Lending LLC your success is our success!

Loan Funding

A part of the loan amount , equal to the estimated cost to bring the property to a good, marketable condition, is held back by the lender as a “rehab reserve.” Rehab reserve funds are released to you in draw payments as work is completed and inspected. The balance of the loan amount is first applied at closing toward the purchase price and other acquisition related costs. If the remaining balance is more than your purchase price and other acquisition costs, you can receive up to $2,000 in cash at closing, and you can elect to have Greenbriar Lending hold any remaining excess in an escrow account to make future interest payments for you, or to reduce the loan amount. If the balance is less than your purchase price and other acquisition costs, you will need to bring a cashiers check for the difference to closing.

Terms

First lien notes only, with a mortgagee (lender) title policy. Interest only payments. All loans are 9 month balloons. Extensions can be requested but require two points payable immediately upon the extension of the note. Extensions are usually 3 months but can be 6 months under certain circumstances. A builder’s risk hazard insurance policy or a vacant dwelling policy for the 6 month loan term is required to be in force at closing. Flood insurance is required if the property is in a FEMA designated flood zone.