To ensure a simple approval process we will need the following documents labelled EXACTLY as presented (i.e. your bank statement should be labeled Bank Statement – Month):

• Copy of the borrower’s ID
• Two most recent bank statements (full statements w/ all pages included)
• Most recent tax return (all pages only for verification purposes)
• Business Entity Docs (documents vary state to state – please provide only what is required in your state)
  • Articles of Organization
  • Signed operating agreement
  • Certificate of good standing
• Purchase contract – executed  (if applicable)
• Detailed construction budget / rehab scope  (if applicable)
• Insurance agent name, phone, and email
• Title/closing attorney company name, contact name, phone, and email (state laws determine if title company or closing attorney)

As a first time borrower with LNH you should plan for 2-3 weeks to close.  Documents need to be submitted and reviewed in addition to you being vetted as a reliable borrower.

Every loan thereafter should take between 10-14 days to close.

For a rehab loan, borrowers are allowed to request funds as a part of their loan to complete updates/enhancements to the property (as defined in the rehab scope approved with the loan).  Funds are dispersed as work is completed and verified by an inspector.  

Down payments will vary between 10% – 20% of the total loan amount based on borrower credentials.  Borrower credentials are verified during the underwriting process. 

To close your loan, you will need your down payment amount plus closing costs (insurance, lender, and title fees).  

Lockett-N-Homes is able to lend in 48 states with the exclusion of North and South Dakota.  

No, you cannot use your own appraiser.  Lending guidelines require use of an approved third party Appraisal Management Company (AMC) with registered certified appraisers.    

LNH is required to schedule the appraisal, but the borrower is required to pay for the appraisal. The typical cost of appraisal is between $400-$500 but it varies from state to state.

Flip history verification is determined by the number of properties where the borrower’s name or LLC name is on title.  Further substantiation can be provided with before and after pictures from the properties. 

All information provided by the borrower will be vetted during the underwriting process and can impact the final terms. 

Rehab funds are determined by the borrowers rehab scope and are vetted during the appraisal and underwriting process. 

Reserve funds can be sourced from any one of the following accounts associated with the borrower (the borrower’s spouse or family member’s funds cannot be considered if they are not a part of the loan): 

• Checking account
• Savings account
• Retirement account
• Brokerage account