FAQs
Investor Financing Questions
Search the questions investors ask most often, organized by financing type and stage of the process.
WJR Equity Lending focuses on business-purpose, investment-property financing across three categories: fix and flip projects, DSCR rental properties, and ground-up construction. Specific property types and eligibility are reviewed scenario by scenario. [WJR POLICY TO BE CONFIRMED]
A business-purpose loan is made for investment or business reasons rather than for a personal, family or household purpose. Investment-property financing is generally business purpose, which is one of the reasons it is underwritten differently than an owner-occupied mortgage.
[WJR POLICY TO BE CONFIRMED]
Many investors hold investment properties in an entity. Entity requirements, documentation and any guarantee expectations are confirmed during review. [WJR POLICY TO BE CONFIRMED]
Helpful details include the property address, purchase price or current value, the loan amount requested, the scope of work or construction budget if applicable, your projected value at completion, your timeline and your intended exit strategy.
[WJR POLICY TO BE CONFIRMED]
Investors often reach out while a property is under contract, but scenarios can also be discussed earlier so the financing approach is understood before an offer is made.
ARV stands for After Repair Value: the estimated market value of a property once the planned renovation scope is complete. It is typically supported by an appraisal and comparable sales.
LTC stands for Loan-to-Cost, a ratio comparing the loan amount to the total project cost, which on a renovation project may include both acquisition and rehab budget.
Renovation funds are generally released in stages as work is completed rather than all at closing. A draw request is submitted, the completed work is verified, and funds are released for that portion of the scope. Specific draw procedures and inspection requirements vary. [WJR POLICY TO BE CONFIRMED]
Experience is one of the factors reviewed alongside the property, the project scope and the numbers. Newer investors are encouraged to bring a well-documented scope of work and a realistic budget. [WJR POLICY TO BE CONFIRMED]
DSCR stands for Debt Service Coverage Ratio. It compares the income a property produces against its debt obligations, and it plays a central role in how rental property financing is evaluated.
In its simplest form, DSCR is property income divided by debt obligations. Definitions of income and of the obligations included in the calculation vary by program, so the exact inputs should always be confirmed.
DSCR financing is commonly discussed for purchases, rate-and-term refinances and, where eligible, cash-out refinances. Eligibility depends on the property, the scenario and program requirements. [WJR POLICY TO BE CONFIRMED]
DSCR financing centers on the property's income and debt obligations. What additional borrower documentation is required varies by program. [WJR POLICY TO BE CONFIRMED]
Typically the land details and whether it is owned or being acquired, plans and permit status, a line-item construction budget, the builder or general contractor, the projected timeline, the completed value estimate and the intended exit.
Builder and developer experience is one of the elements reviewed on a ground-up project, along with the plans, budget and market. Requirements are confirmed during review. [WJR POLICY TO BE CONFIRMED]
Construction funds are generally advanced against completed phases of work on a defined draw schedule. Inspection and documentation requirements are confirmed for each project. [WJR POLICY TO BE CONFIRMED]
Once underwriting conditions are satisfied, the transaction moves toward closing with title, insurance and entity documentation coordinated ahead of funding.
Investment property transactions often involve an appraisal or valuation, title work and insurance. Exact requirements depend on the program and scenario. [WJR POLICY TO BE CONFIRMED]
You submit the referral through the referral form, WJR Equity Lending reviews the opportunity, and if it is a fit WJR works directly with the borrower on their financing scenario.
Referral program terms are being finalized. [INSERT BILL'S APPROVED REFERRAL PROGRAM TERMS HERE] Any compensation is subject to eligibility, program terms and applicable laws and regulations.
Where an answer depends on WJR Equity Lending’s underwriting requirements, it is marked as to be confirmed rather than estimated. Program details will be published here once finalized.
Working on a deal?
WJR Equity Lending can review your financing scenario and discuss what options may be available for the property, project and exit strategy.