Loan Application Process

What is my first step to obtaining a loan with NavCap?

Your first step should be to register on our website. Once you have logged in, you'll have access to all of our loan documentation and can begin the automated application process. On your account page, you will see a list of documents on the right hand side starting with the proof of funds letter. You can generate a proof of funds letter once you have located a property and use it to obtain a contract on that property. It's a non-binding document. 

Watch this short video for a step by step guide to our application process. 

Do I need a certain credit score to obtain financing? 

As part of the application process, borrowers will authorize NavCap to run a credit check. However, we are not looking for any particular credit score but rather general credit worthiness. We check for any active foreclosures or open tax liens as they may negatively impact the borrower’s ability to acquire additional property and affect the borrower’s profitability on their current project. It's an effort to make sure that our borrowers are on solid financial footing. 

What are your rates? 

Our rates are negotiable and are based on many factors including the history of the borrower and the financial strength of each individual deal. We offer competitive market rates in addition to strategic guidance and hands on support throughout the life of each project. Interest rates typically range from 7 to 15% APR.

How long does it take to get a loan?

We have streamlined and automated the loan application process so that borrowers can sign up and upload all documentation right on our website. Once terms have been agreed upon and the loan approved, the duration of the settlement process depends on several factors including which title company is used and how quickly documents are turned around. But, typically, it takes between 12 and 15 days to close on a loan. 

What fees do you charge? 

During negotiation of the loan and before closing, borrowers are assessed a non-refundable application deposit of $1000. This fee is paid after all terms are agreed upon and the loan is approved. As part of the process, borrowers will also pay for an appraisal of the property at a cost of $550. This fee is paid directly to a pre-selected appraisal firm. In addition to the closing points, there are also limited fees for underwriting, document preparation, and services. Borrowers should keep in mind that we require a Builder’s Risk insurance policy to be in effect during the life of the project. The fees for this policy will vary. In addition, throughout the life of the project, NavCap assesses a $250 fee for each inspection/draw request for a single-family unit or a condo and up to $1000 per inspection/draw for multi-family properties. We recommend limiting draws to three or fewer per project to reduce the expense incurred. 

What happens after I submit the Proof of Funds and have the property under contract? 

Your next steps would be to fill out the pre-application and, once we've determined if the numbers make sense, then a full application. There is also supporting documentation that needs to be submitted with the full application. These are listed on our website as well.

We will send a conditional letter of approval once everyone has agreed to all the terms. Once your offer on the house has been accepted, and you have a ratified Contract of Sale and Scope of Work, the appraisal will be triggered. There are non-refundable fees for the application and the appraisal. 

What is a Scope of Work, and why do I need one? 

When it comes to house flipping, it pays to have a plan. As any successful flipper will tell you, a good Scope of Work (SOW) estimate is critical to the success of any reno project. It establishes the parameters of the renovation from start to finish. The SOW is a detailed document that describes the repair work that needs to be done to make the house sellable. It should include an overview of the project as well as individual line items of the work necessary to complete the job. As a starting point in the process, we have created a sample SOW spreadsheet that is available in three formats - as a printable PDF, as an Excel spreadsheet and as a Google Sheet. For the PDF, simply click on the link and save the file directly to your computer. Similarly, you may click on the link for the Excel spreadsheet and work directly in the file, saving as you go. For the Google Sheet, you will need to first login to your Google account and then make a copy. 

How much money do I need to bring to the table? 

When we invest in a project, we make a commitment to the borrower to do everything in our power to ensure its success. We expect our borrowers to be equally committed and, to that end, require that they have sufficient funds on hand to begin the first phase of the renovation. Typically, borrower cash outlays amount to a minimum of 10% of the loan amount for purchases and sometimes less for refinance loans. As you might expect, the more money borrowers are able to bring to the table, the more competitive a rate we can offer. For our clients with considerable experience and good credit, we offer the most flexibility on both our rates and cash requirements.