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 ground-up construction, we take the time to develop strong relationships with our customers to understand their particular needs and project goals.

How to Submit

How to Submit

Submitting is easy!

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
  • Construction Estimate & Timeframe
  • Contractor Information
  • Payoff Statement, if a Refinance
  • Borrower’s Attorney information
  • Articles of Incorporation, if applicable
  • Property Management Questionnaire (required for rental loans only)
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We also complete an independent background check of the borrower and the entity.

Once we review all the items, the borrower 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 borrower to put money into the deal. Other factors that influence our loan terms include: borrower experience, if the subject property has been purchased below market value, the loan-to-value (LTV) and, more important, the after-repair-value (ARV). We typically look for an ARV to be around 70-75% of the loan.

We then present the Term Sheet to the borrower and answer any questions they may have. Once the borrower agrees to the Terms, fees are collected and an appraisal is ordered.

The appraisal usually takes 10-14 days to be completed and returned to the Underwriter for review. This is a crucial part of the underwriting process because we always use an independent third-party appraiser to evaluate the property and provide two values: the “AS IS” value and the “SUBJECT TO” value. This can make or break a deal or in some cases require renegotiation of the deal terms.

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