LOAN PROGRAMS
All loan programs require investor's to contribute their own capital in the form of hard cash, no matter how good of a deal the investor secured. This is non negotiable and aligns the investors interest with ZINC's and provides for a mutually beneficial relationship.
ZINC has 4 Investor Rehab Loan Programs, each one with a different degree of Investor experience required. Experience is verified prior to funding. Please determine which loan program applies to you, then submit your loan request and upload the required submission documents at our Submit a Loan tab on our website.
LOAN PROGRAMS (see below for further information)
- Rehab Pro (ZRP)
- Rehab Experienced (ZRE)
- Rehab Beginner (ZRB)
- Auction Cash Out (ZACO)
| 1) ZINC REHAB PRO (ZRP) |
| Investor has completed 3 or more profitable transactions with ZINC in last 12 months |
| Pre Pay: | none |
| Loan Amounts: | $25,000 to $400,000 |
| Term: | 6 months with up to two 90 day extensions |
| Rate: | 12.5% |
| Points: | 4 |
| Borrower Down Requirement: | 10-20% of Purchase Price. |
| Liquidity: | 10% - 30% of total project cost. |
| Rehab Budget Financing: | Up to 80% of rehab budget with fund control. |
| LTV: | Up to 65% A.R.V. |
| FICO: | 625+ ** |
| Rehab Timeline: | All rehab work must be fully completed within 75 days of funding. |
| Underwriting/Loan Documents: | $1,100.00 plus $350.00 for appraisal ordered by ZINC directly. |
| Timeline to Fund: | 7 to 10 days |
See submission form for other parameters.
** Lower FICO's considered on a case by case basis, however ZINC is not a subprime lender.
| 2) ZINC REHAB EXPERIENCED (ZRE) |
| Investor has completed 3 or more profitable transactions with any lender in last 12 months. |
| Pre Pay: | none |
| Loan Amounts: | $25,000 to $400,000 |
| Term: | 6 months with up to two 90 day extensions |
| Rate: | 13.00% |
| Points: | 4.5 |
| Borrower Down Requirement: | 10-20% of Purchase Price. |
| Liquidity: | 10% - 30% of total project cost. |
| Rehab Budget Financing: | Up to 80% of rehab budget with fund control. |
| LTV: | Up to 65% A.R.V. |
| FICO: | 625+ ** |
| Rehab Timeline: | All rehab work must be fully completed within 75 days of funding. |
| Underwriting/Loan Documents: | $1,100.00 plus $350.00 for appraisal ordered by ZINC directly. |
| Timeline to Fund: | 7 to 10 days |
See submission form for other parameters.
** Lower FICO's considered on a case by case basis, however ZINC is not a subprime lender.
| 3) ZINC REHAB BEGINNER (ZRB) |
| Investor has less than 3 transactions, or is just starting out. |
| Pre Pay: | none |
| Loan Amounts: | $25,000 to $400,000 |
| Term: | 6 months with up to two 90 day extensions |
| Rate: | 14.00% |
| Points: | 5 |
| Borrower Down Requirement: | 15-25% of Purchase Price. |
| Liquidity: | 10% - 30% of total project cost. |
| Rehab Budget Financing: | Up to 80% of rehab budget with fund control. |
| LTV: | Up to 65% A.R.V. |
| FICO: | 625+ ** |
| Rehab Timeline: | All rehab work must be fully completed within 75 days of funding. |
| Underwriting/Loan Documents: | $1,100.00 plus $350.00 for appraisal ordered by ZINC directly. |
| Timeline to Fund: | 7 to 10 days |
See submission form for other parameters.
** Lower FICO's considered on a case by case basis, however ZINC is not a subprime lender.
| 4) ZINC AUCTION CASH OUT (ZACO) |
| Pre Pay: | none |
| Loan Amounts: | $25,000 to $400,000 |
| Term: | 3 months with up to two 90 day extensions |
| Rate: | 12.5% |
| Points: | 3.5 |
| Cash Out Max: | Up to 80% of what investor paid at court house auction. |
| Liquidity: | 10% - 30% of total project cost. |
| FICO: | 625+ ** |
See submission form for other parameters.
** Lower FICO's considered on a case by case basis, however ZINC is not a subprime lender.
| SUBMISSION DOCUMENTS |
1) ZINC Application Packet
(see zincfinancial.net - forms section) |
4) Credit Report (Tri-Merge) |
2) Completed Submission Form
(submit a loan tab) |
5) 3 Months Bank Statements |
| 3) Purchase Contract (if a purchase) |
6) Ten Colors Pictures - Inside, outside, and street
view or color appraisal |
Additional Requirements:
- Lien position - First only.
- Rehab funds - control fund required if rehab portion is financed. Third party control fund fee of $1200 applies.
- Property must fall at or below disposition value, as determined solely by ZINC Financial, LLC.
- Investor must demonstrate ability to repay or refinance in the event of inability to sell the property.
- Investor must always personally guarantee all loans, regardless of title vesting.
- To review any submission, ZINC needs a minimum of:
EXAMPLES OF QUALIFIED REHAB LOANS:
1. INVESTOR A - ZINC REHAB PRO (ZRP)
Investor A is experienced and has bought and sold at least 3 properties all financed with ZINC within the past 12 months, each with a substantial profit.
Investor A locates an REO or distressed property and negotiates a purchase price of $100,000. Investor submits a loan submission to ZINC. ZINC confirms that $100,000 is at or below the disposition value for other situated properties in the area.
Investor A has two options:
1) The Investor can now secure the loan immediately for up to 80% of the initial purchase or in this example $80,000.
| A.R.V. | $175,000 | After Repaired Value |
| Purchase Price | $100,000 | |
| ZINC Loan Amount | $80,000 | |
| Loan Fee | $3,200 | 4.0 points |
| Appraisal | $350 | |
| Underwriting | $1,100 | |
| Title/Escrow/Other | $1,000 | Estimate |
| Cash Required | $25,650 | Plus 10-30% in reserves, or $10,000-$30,000 in this example |
OR
2) The investor can secure rehab estimates to increase the loan to cover a portion of the rehab budget. If the investor chooses to secure a rehab estimate and the rehab bid comes in at $30,000, the Investor may request a loan amount of up to 80% of initial purchase of $100,000, and up to 60% of the rehab estimate of $30,000 for a total loan request of $98,000 ($80,000 + $18,000).
If a portion of the rehab is financed, the entire rehab budget, including the investor's portion is escrowed in a control fund and is disbursed at up to 3 stages of the rehab, if and only upon:
- Physical inspection of completed work
- Required lien releases by all sub contractors have been secured, and
- Appropriate county inspection sign offs, confirming completion, have been secured.
| A.R.V. | $175,000 | After Repaired Value |
| Purchase Price | $100,000 | |
| Rehab Estimate | $30,000 | |
| ZINC Loan Amount | $98,000 | (80%*100,000+60%*30,000) |
| Loan Fee | $3,920 | 4.0 points |
| Rehab Fund Control | $1,000 | 3rd party control fund fee |
| Appraisal | $350 | |
| Underwriting | $1,100 | |
| Title/Escrow/Other | $1,000 | Estimate |
| Cash Required | $39,370 | Plus 10-30% in reserves, or $10,000-$30,000 in this example |
There is a fee for the 3rd party control fund process.
See submission form for other parameters.
2. INVESTOR B - Auction Cash Out (ZACO)
Investor B purchases a distressed property at the County Courthouse Auction for $100,000. Investor B pays for the property, as required, at the auction on the day of the auction. Investor submits a loan submission to ZINC, to obtain up to 80% of the cash just spent in order to provide liquidity to the investor enabling the investor to purchase more properties immediately.
| A.R.V. | $175,000 | After Repaired Value |
| Purchase Price | $100,000 | Investor already paid this at auction |
| ZINC Loan Amount | $80,000 | |
| Loan Fee | $3,200 | 4.0 points |
| Appraisal | $350 | |
| Underwriting | $1,100 | |
| Title/Escrow/Other | $1,000 | Estimate |
| Cash Back to Investor | $74,350 | |
In either loan process, the rehab investor must have skin in the game in the form of hard cash, no matter how good of a deal the investor negotiated. This is non-negotiable and aligns the investors interest with ZINC's and provides for a mutually beneficial relationship.
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DEAL ANALYZER