Our Lending Parameters

At Patch of Land, we look at every project proposal individually—each deal and borrower is unique. Whether you’re needing funds for a fix & flip, rental, or commercial project, we take the time to develop strong relationships with our customers to understand their particular needs and project goals. The parameters below are a general guideline to help you get started.

Funding for Fix & Flips, Rental Properties, & Commercial Projects

At Patch of Land, we can fund your first loan in as little as 7 days. Whether you’re looking for capital for a fix & flip, rental, or commercial property, we have a program to meet your needs. Once you’ve funded your first loan, faster approval times and more financing options can make the process even easier for future loans.

Find the Program that's right for your project: Fix & Flip Loan Program Rental Loan Program Commercial Loan Program
Loans for rehab properties
Up to 12 month loan terms
Up to 85% LTV and 70% ARV
Loans for rental properties
24 month loan terms
Rent coverage ratio of 1.25x
Loans for commercial properties
Up to 12 month loan terms
Available in 45 states
Fix & Flip Loan Program Rental Loan Program Commercial Loan Program
Project Type Single Family Residential
2-4 Unit Residences
Condominiums
Townhomes
Multi-Family Apartments
Mixed-Use Buildings
Small Commercial
Single Family Residential
2-4 Unit Residences
Condominiums
Townhomes
Multi-Family Apartments
Mixed-Use Buildings
(min. 50% residential)
Multi-Family
Apartments
Mixed-Use
Single-Use
Office
Light Industrial/Warehouse
Retail
Loan Amount $50,000 to $3,000,000 $100,000 to $3,000,000 $250,000 to $3,000,000
Loan to Value (LTV) Up to 85% Up to 75% Up to 70%
Rent Coverage Ratio Not Applicable 1.25x 1.1x
Loan Term 12 Months
(No Prepayment Penalty)
24 Months
(With 1-Year Extension Option)
12 Months
Interest Rate From 8% From 8% From 10%
Proceed Usage Purchase, Refinance, Renovation, Bridge, Cashout Purchase, Refinance, Bridge, Cashout Purchase, Refinance, Renovation, Bridge
How to Submit

How to Submit

Submitting is easy!

Go to www.patchofland.com/developer-information/ and fill out a loan application.

Submitting an application online takes as little as five minutes. After your application is submitted, a loan officer will promptly call to discuss your project in more detail and review next steps.

For questions, please email [email protected] or call 1-888-959-1465.

Submissions

Required Documentation

Typically, loans are initially submitted through our website and customers provide information regarding the project and their background.

Customers are emailed a copy of their application and a list of documents needed to complete the application process.

The list includes:

  • Credit Report (we look at all scores because we take a holistic approach)
  • Proof of Funds (for down payment, closing cost, et cetera)
  • Inspection Report of the property, if available
  • List of Comparable sales (CMA, BPO, MLS listings)
  • Purchase Contract, if a purchase
  • Property Management Questionnaire (rental only)
    Click to Download
  • Construction Estimate & Timeframe
  • Contractor Information
  • Payoff Statement, if a Refinance
  • Borrower’s Attorney information
  • Articles of Incorporation, if applicable Developer Biography (to be posted on the website)
  • Property Description/Plans (to be posted on the website)

We also complete an independent background check of the borrower and the corporation .

Once we review all the items, the developer is called to discuss details and answer any questions. If everything looks good, the loan is presented to our Executive team to determine the Interest Rate, Points & Structure of the loan.

It is important to note, that many factors go into the underwriting of a loan. We typically like the developer to put money into the deal (the more, the better). How “seasoned” is the developer? Are they buying under market value? What is the LTV? More importantly, what will the ARV (After Renovated Value) be? We typically look for an ARV to be around 60% of the loan. Is it in an appreciating market?

We then call the developer to present the Letter of Engagement and answer any questions they may have. Once the developer agrees to the Terms, an appraisal and legal work are ordered.

All of this usually takes about 24 hours at this point. Then the appraisal is ordered.

The appraisal will usually take 4-5 days to be completed and returned to the Underwriter for review. This is a crucial part of the underwriting process because we always use a licensed independent third appraiser to evaluate the property and give us two values: the “AS IS” value and the “SUBJECT TO” value. This can make or break a deal or at the very least, renegotiate the loan size. The appraiser is our eyes and ears at the property and helps ensure our due diligence to protect our investors’ capital.

Once everything is signed off by the Underwriter, it is scheduled to close.

In total, a loan can close as quickly as 5 days but on average it’s about 10 business days.