F.A.Q
Why use LoanSum?
What is a “Hard Money” Loan?
What is the maximum loan LoanSum will provide?
What does LoanSum require for account approval?
What does LoanSum require for loan approval?
Will LoanSum loan me the money for the repair costs in addition to the funds needed to purchase the property?
What is the ARV?
What is the maximum Loan to Value (LTV) ratio?
How much does LoanSum charge for a rehab loan?
What is the duration of a loan from LoanSum?
Can I extend my loan after the initial 4-month term is up?
What types of properties will LoanSum fund?
How and when are the construction funds released?
Can I take title into my LLC or corporation name?
How long does it take for a borrower to create an account and what is the typical time frame for closing a loan with LoanSum?
In what geographic areas will LoanSum provide funding?
Who can I use for builders risk and general liability insurance coverage on LoanSum loans?
Will LoanSum loan on properties that are occupied at the time of closing?
Do you charge prepayment penalties?
Do I need to have the property under contract before submitting a loan request?


Why use LoanSum?

• LoanSum will finance 100% of the purchase price and loan fees (excluding closing costs and insurance).
• LoanSum closes loans fast! You will not miss those hot deals because of funding.
• Experience. LoanSum’s management team has over 15 years of lending experience and we process hundreds of transactions every year. We are committed to providing you the support you need to complete a profitable transaction.

What is a “Hard Money” Loan?
Hard Money is a term that has been used to describe a loan made on the raw equity of a particular property. Instead of lending on the lower of the appraised value or selling price as banks require, Hard Money Lenders finance a percentage of the “After Repaired Value” or ARV.

What is the maximum loan LoanSum will provide?
Typically LoanSum will not finance more than $250,000 dollars per transaction.. LoanSum does not have a minimum loan amount.

What does LoanSum require for account approval?
LoanSum loans are based on the investment property value, your exit strategy and your ability to pay the monthly interest payment. You will be required to provide us with the following:

• Submitted online account application

What does LoanSum require for loan approval?

• An approved LoanSum account
• Submitted online loan request
• Sales Contract signed by all parties
• Lockbox Information
• Itemized construction bid from your contractor
• *Refinance pre-approval letter
• Completed Property Analysis spreadsheet (available in the downloadable documents section)
• Account statements for all liquid assets for the last 3 months
• If taking title to the property in a corporate name, Corporate Documents (Articles of Organization, Operating Agreement or Bylaws, Tax ID #, and Certificate of Good Standing). All members, officers and their spouses, of a corporation must sign all documents at closing.

* Due to current housing market conditions we require everyone to provide proof that they are able to refinance out of our loan.

Will LoanSum loan me the money for the repair costs in addition to the funds needed to purchase the property? 
Due to current housing market conditions LoanSum will now only finance the acquisition cost (excluding closing cost and insurance). However under certain conditions LoanSum will finance construction costs.

What is the ARV?
The ARV is an acronym for “After Repair Value”. This describes the value of a property once the proposed repairs have been completed and the property is ready for the retail market. Valuation or “After Repair Value” of the property is “Subject to” the completion of the construction.

What is the maximum Loan to Value (LTV) ratio?
The maximum Loan to Value (LTV) that LoanSum will finance is 70% (LTV) and it is based on the “After Repaired Value” (ARV) of the property. For example, if a property will be worth $150,000 after it has been renovated, the maximum loan LoanSum will provide is $105,000. To calculate the LTV we include the purchase price, repair costs and loan fees. Purchase price, repair costs and loan fees are included in the calculation even if LoanSum does not completely finance them.

How much does LoanSum charge for a rehab loan?
LoanSum offers financing to investors based on the requested loan amount and the risk associated with the transaction. Typical origination charges range from 4 to 6 points with a $2000.00 minimum. If construction funds are requested an additional fee of 1 to 2 points, with a $500.00 minimum, will be accessed for administrative costs. Annual percentage rates range from 15% to 18% of the amount borrowed.

What is the duration of a loan from LoanSum?
LoanSum Flex loans have a 360-day term if needed. Flex loans have an initial 120-day term, approximately 4-months. If the loan is not paid in full at the end of 120 days the loan will automatically be renew for an additional 60-day period, approximately 2 months. You may have up to 4 renewals per loan for a loan term of 360 days or one year. By structuring the loan this way you only pay fees for the time that you need the money thereby lowering your cost of capital.

Can I extend my loan after the initial 4-month term is up?
Yes. Your loan will automatically renew up to four times if the unpaid principal balance is not paid in full by the end of the initial term or subsequent renewal term. A minimum fee of 2% or $1000.00 whichever is greater will be charged for each 60 day extension. The renewal fee will be added to your loan and becomes payable when you sell the property.

What types of properties will LoanSum fund?
LoanSum will fund any residential and commercial project including single family, multi family, duplexes, and apartment complexes are all eligible for funding.

How and when are the construction funds released?
You must submit a draw request through the members section of our website. Once the draw request is received a LoanSum representative will inspect the property and all lien waivers and receipts will be compared to the actual work that has been completed to the property. Based on the inspection and the document review LoanSum will approve or deny the request. If approved, a deposit is made directly into your checking account via an electronic funds transfer. Therefore, there is no delay in receiving repair funds from LoanSum. If denied you will need to remedy the issues and resubmit the request. Before your draw can be approved you will be required to submit signed and notarized lien waivers from all individuals and companies providing labor or materials on the property. Please note that if any permits are required on your property, LoanSum will require copies of final inspection certificates to be emailed or faxed to our office prior to receiving a final construction draw.

Can I take title into my LLC or corporation name?
Yes, we allow borrowers to take title in their LLC or corporate name. LoanSum requires that all members, member’s spouses and/or officers/managers of a LLC or corporation sign all closing documents. Taking title in a corporate name still requires a personal guarantee from all of the members, member’s spouses and/or officers/managers of the LLC or corporation.

How long does it take for a borrower to create an account and what is the typical time frame for closing a loan with LoanSum?
LoanSum can approve your account within one business day, which will give you access to the members section of the website. Once a loan request has been submitted to LoanSum and assuming all required documents have been provided, your loan could be processed within 5 business days.

In what geographic areas will LoanSum provide funding?
LoanSum loans are available in: Saint Louis City, St Louis County, St Charles County and Jefferson County

Who can I use for builders risk and general liability insurance coverage on LoanSum loans?
You may purchase your insurance policy from an insurance company and agent licensed in the State of Missouri. Before your closing date LoanSum must receive your Declaration Page with the following lenders mortgagee’s clause:

LoanSum, LLC ISAOA
150 Weldon Parkway, Suite 103
Maryland Heights, MO 63043

Will LoanSum loan on properties that are occupied at the time of closing?
LoanSum will not fund properties that are owner occupied at the time of purchase or at anytime during the loan term. In addition, due to insurance restrictions, LoanSum will not finance an occupied property that needs extensive renovation.

Do you charge prepayment penalties?
No. Your loan may be paid at any time with no prepayment penalty. The faster you rehab a property and or refinance it the more profit you make.

Do I need to have the property under contract before submitting a loan request?
Yes you will need to have a contract signed by all parties before submitting the online loan request. Note: You will need to create an account before you can submit loan requests and funding letter requests