FAQs

 

Who is AF (Acclaim Funding, LLC)?
Acclaim Funding, LLC is a nationwide, direct private lender. Established in 2010, we provide short-term and long-term hard money loans ranging from $50K to $2.5M+ to fund the purchase of non-owner occupied residential and commercial properties, provide bridge loans, and finance real estate-backed lines of credit. Acclaim Funding lends to real estate investors, commercial contractors, developers, and small business owners throughout the country, regardless of the level of experience. As a direct private lender, Acclaim Funding takes a common-sense approach to underwriting, with all approvals made in-house, and we are dedicated to providing a quick response to time-sensitive loans. We offer a speed unmatched by conventional lenders and can close in as few as 10 business days.  
 
 
What States does AF lend in?
AF is able to lend to most states in the U.S. with the exception of Nevada, Oregon, North Dakota, South Dakota, Minnesota, and Vermont. 
 
How Do we determine Loan Amount?
AF is an asset-based lender and loan amounts are based on the value of the real estate asset that is being pledged as collateral. Max loan-to-value varies by loan program.
 
 
Required Docs
AF requires basic documentation to underwrite the borrower and the property. This includes an application; authorization to run a credit report and background check; copies of bank statements (proof of funds); property appraisal; copies of leases, if appropriate; renovation estimates; and documentation on the business entity.  
 
 
What is the Minimum FICO Score?

AF’s bridge loans and After-Repair Value loan program have a minimum FICO requirement of 600. AF’s Buy-to-Rent loan program has a minimum FICO of 660. The Long-Term Rental loan program has a minimum FICO of 620.

With all loans at AF, the borrower’s credit score is taken into consideration when underwriting the loan. AF reviews the individual’s history to determine if there is a repeating pattern of poor financial management or if an isolated incident affected the individual’s credit. We also look at the borrower’s credit in terms of the exit strategy. If the borrower intends to buy and hold rather than fix and flip the property, we will pay closer attention to FICO scores.

Our there any upfront fees?
There are no upfront fees to review your Loan Application. Standard loan application, origination, and commitment fees are assessed based on complexity, timeframes and the assumed risk. Upon pre-approval, all rates, costs, terms, and conditions will be explained in detail in the LOI (Letter of Interest) prior to any invoices or deposits.
 
 
What if I need more support or mentorship?
AIM will support or handle as many aspects of your Investor guidance, loan preparation, origination or onsite scheduling as you request. Your personal AIM mentor will review your request and offer a quote depending on the complexity and timeframe requirements of the service request. If ongoing Investor Guarantor Mentorship is requested an affordable monthly membership subscription is also available.
 
 
Who is responsible for appraisals, permits and site studies?
The borrower is responsible for any third party fees such as appraisals, permits or project feasibility studies which can also be handled by our Concierge Coordination Team.  
 
 
Do you charge interest on the Full Amount of the ARV Loan?
Unlike many of our competitors, AF only charges interest on the current outstanding balance of an ARV loan. We do not charge interest on the hold back until the funds are drawn, saving you money.  
 
 
Do you have any prepayment penalties?
AF’s 18-month bridge loan has a 2% pre-payment penalty if the loan is repaid prior to month 9. AF’s 24-month Buy-to-Rent loan has a 5% pre-payment penalty if the loan is repaid during the first 6 months of the loan term. AF’s 30-year Long-Term Rental loan has adjustable prepayment options for up to 5 years. There are no pre-payment penalties associated with AF’s other loan programs.  
 
 
What can I use as collateral for my loan? 
For our Bridge Loans, After-Repair Value loan program and Buy-to-Rent loan program, AF will consider non-owner occupied 1-4 family & multi-family real estate, condos, townhomes, 5+ unit apartments & mixed-use properties as potential collateral. For our Long-Term Rental loan program,  AF will consider non-owner occupied 1-4 family real estate, condos, townhomes, and planned unit developments (PUDs) as collateral.  
 
Do you fund the rehab costs?
AF offers an After Repair Value loan program for non-owner occupied 1-4 family & multi-family real estate, condos, townhomes, 5+ unit apartments, & mixed-use properties. AF will lend up to 85% of the purchase price and up to 100% of the renovation costs, not to exceed to 75% of the after repair value.  
 
 
What is AF's maximum LTV (Loan To Value) based on ARV (After Repair Value)?
AF is an ARV Lender. Our ARV Loan Program provides up to 85% of the purchase price with an LTV not exceeding 75% of the After Repair Value.  
 
 
Can I use AF to purchase my home?
AF is a commercial lender meaning our loans are used for business purposes, rather than individual or personal interests. We do not provide funding for the purchase of any owner-occupied residential properties. Our loans are strictly backed by non-owner occupied residential and commercial properties and are issued to a business entity.  
 
 
What type of documentation is required for the loan application?
AF requires basic documentation to underwrite the borrower and the property. This includes an application; authorization to run a credit report and background check; copies of bank statements (proof of funds); property appraisal; copies of leases, if appropriate; renovation estimates; and documentation on the business entity.  
 
 
Do you pay referral or finder's fees?
AF will gladly compensate you for a referral that results in a closed loan, pursuant to local rules and regulations. It is up to you to determine whether you are legally able to accept a referral fee.  
 
 
How do I sign up for AF's Broker Program?
If you are interested in receiving more information about AF’s Broker Program, please fill out the contact form on the Broker Jobs tab on our website and follow the easy to use instructions to Submit Loans which will automatically create a Broker ID and assign your deals to you in your Broker Portal. 
 
 
How do I get paid as a Broker?
Broker fees are disclosed upfront on the commitment letter, in a transaction-specific agreement with AF and on the HUD. A check is sent directly to the broker at closing.