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Loan Policies
New Loan Processing
- reQuest Capital is not a party to your sales contract, and cannot guarantee compliance with the contract closing date.
- A detailed budget is required for all work to be performed. Failure to provide this detail will delay the processing of your loan.
- Please allow 72 hours for review and approval of your loan request.
- Based on review and qualification of your loan, we may require you to pay all or part of the fees collected in connection with closing.
- An insurance policy for the amount of the loan and for the term of the loan is required to close. Provide us with the name and phone number of the insurance company. Let us know if you want our assistance with this. See Insurance Requirements.
- Financial information may be required.
- If your loan is in the name of a DBA, please provide us with your:
Assumed Name Record/Certificate
- If your loan is in the name of a partnership, please provide us with:
Partnership Agreement
Partnership Certificate
Certificate of Filing with the State
Certificate of Good Standing with the State
EIN (SS-4 form)
- If your loan is in the name of a corporation or LLC, please provide us with the organization documents indicated below, as appropriate:
Articles of Organization
Certificate of Organization or Incorporation
Articles of Incorporation
Operating Agreement
Certificate of Good Standing with the State
Confirmation of Filing or Incorporation
By-laws
EIN (SS-4 form)
Loan Fees
Following is an estimate of fees collected at closing. The qualification process may require the borrower to pay all or a portion of these closing costs at closing.
- Loan Fee: 4% of loan amount
- Pre-Inspection Fee: $300.00
- Processing Fee: $300.00 (for automatic ACH payments) or $750.00 (for payments by check)
- Administration Fee: $750.00
- Property Analysis Fee: $375.00
- Annual Interest Rate: 14%
- Duration of Loan: 12 months
Closing Procedures
- Once your loan is approved, we will process your loan through the designated title company to prepare for closing.
- The title company will contact you to schedule a closing date and time.
Billing and Payment Processing
- Your payment history will be a factor in qualification for future loans.
- Your loan requires you to make monthly interest payments.
- Interest payments are due on the 20th day of each month. Late charges will be assessed for payments received after the 20th.
- Checks returned for non-sufficient funds will incur a $35 charge. We may then require all future payments be received in the form of cash, cashier's check, money order, credit card or debit card.
- Failure to make monthly interest payments will result in foreclosure.
Construction Draw Processing
- A detailed budget is required for all work to be performed. Failure to provide this detail will delay your draws.
- If your loan includes repair funds, a draw request form will be included with the documents you sign and receive at closing. Additionally, we can e-mail or fax the draw request form to you at any time.
- Complete your draw requests with detailed information. Incomplete requests will result in delayed inspections and delayed funding.
- Receipts and invoices must be provided with your draw request. We may choose, at our discretion, to pay your vendors directly.
- Draws will not be issued if monthly interest payments on any of your loans are outstanding.
- For each inspection performed on the property, regardless of whether or not your draw is approved, a charge will be made at the prevailing rate.
- We will reimburse work that is complete and of good quality.
- We will not reimburse work that is incomplete or of poor quality - verify that all work is complete prior to scheduling your inspection.
- You must maintain accurate records for all draws received.
- Your monthly interest payments are calculated on the total funds you have received. As a result, payments will increase as you are reimbursed for repairs.
- If repairs are not complete within the timeframe you indicate on the Loan Request form, interest will be charged on the full loan amount, effective the day after the projected completion date.
Insurance Requirements
- An insurance policy is required for closing and will need to:
- Cover your loan amount.
- Remain in effect for the term of the loan.
- Cover vacancy, vandalism and malicious mischief.
- Provide to us the name and telephone number of your insurance company on the Loan Request form. If you would like assistance with setting up your policy, please contact us.
- We do not accept policies written by Texas Fair Plan. All insurance premiums are required to be paid prior to, or at, closing.
- Any delay in providing insurance coverage could delay the funding of your loan.
- If we are notified by your insurance company that your insurance will be cancelled:
- It is your responsibility to contact your insurance company concerning the cancellation.
- Your insurance company must provide us written evidence of your policy's reinstatement.
- If evidence of reinstatement is not provided, we will secure an insurance policy on the day preceding your cancellation date.
- You will be charged an insurance placement fee in addition to the cost of the policy. These fees will be added to your next monthly payment.
Property Tax Requirements
- Property taxes must be paid when due.
- Failure to pay your property taxes when they become due is grounds for foreclosure.
- Tax statements are released in November of each year and are due by the first day in January.
- Borrowers must send us a copy of their paid tax receipt by January 31st each year.
Loan Maturity and Payment in Full
- The term of your loan is 12 months. Loans must be paid in full by the loan maturity date.
- Interest payments must be maintained until the loan is paid in full.
- Payoff statements do not allow for deferment of interest payments.
- Non-payment will result in foreclosure.
- If the loan reaches the maturity date, the interest will increase to the maximum allowable rate of 18%, effective the day immediately following the maturity date.
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