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Frequently Asked Questions (FAQ) – Koinonia Capital Funding
- What Services Does Koinonia Capital Funding Offer?
We offer a range of services tailored to meet your real estate investment needs. Our offerings include Fix & Flip, Buy & Hold, Refinance, Commercial, New Construction, and Private Money Loans. We also provide Proof of Funds Letters, Collateral DNA Reports, Debt Stack Reports, and have high-equity off-market property leads available, so you are not competing with other investors in your area. - What are the benefits of private money lending?
Benefits include quicker access to capital, flexibility in loan terms, no minimum credit score requirements, and the ability to secure financing for properties that may not meet traditional lending criteria. - Are you a Lender or a Broker, and are there fees or commissions involved?
We are both a lender and a broker. If for any reason we can’t provide the funding you need, we have a large network of other lenders we work closely with and can broker the funds to you. We provide options to ensure you get the best rates and quickest closings available. If you need 100% funding, we also have split equity opportunities to provide full financing for your purchase, rehab, and closing costs. Regardless of the loan type, there is always a 3% broker fee, which is standard in the industry. - How do you decide the amount to lend?
The loan amount is based on the asset you have under contract. Generally, we lend up to 90% of the purchase price and 100% of the rehab cost. Ask us how you can qualify for up to 100% financing. - I need 100% financing. Can you do that?
Yes, when joint venturing with us, we can provide up to 100% financing. - What Does True 100% Funding Mean?
We will lend up to 100% toward your purchase, rehab, and closing costs up to 70% of the ARV when a joint venture is established between Koinonia Capital Funding and the borrower. - How long does it take to close a transaction from start to finish?
The process takes approximately 14 days after we receive all required documentation. However, gathering documentation can take three to four weeks. While we can process our part in about 14 business days, investors seeking funding often take longer to submit complete documentation. To ensure a smooth process, aim for a 30-day closing whenever possible. - What Does FHA Cap Mean?
The FHA Cap represents the maximum loan amount in the county where the investment property is located. To find the FHA Cap in your area, visit: FHA Mortgage Limits (hud.gov) - What Does ARV Mean?
ARV stands for After-Repair Value. It is the estimated value of a property after renovations are completed. - What Does Asset-Based Lending Mean?
Asset-based lending is a loan where the lending decision is primarily based on the value of the real estate property under contract, rather than the borrower’s creditworthiness. While the borrower’s ability to pay is considered, the approval decision and loan-to-value ratio primarily depend on the property’s value. - What are your Loan Terms?
- Koinonia Capital Funding offers lending options from $30,000 up to the FHA Cap in the county where the property is located. Additional funding solutions are available based on the property type and loan needed.
- Rates start at 7% annualized interest with an origination fee ranging from 0-3%, and there are no prepayment penalties. (Rates are based on credit score, but credit score does not determine loan approval.)
- Loan Term: 6 months to 2 years for a Fix & Flip. 30 years for Buy & Hold or Refinance.
- One loan is approved per applicant until a proven track record is established.
- Do I need an appraisal, and how much will it cost?
Yes, Koinonia Capital Funding requires an appraisal before closing. Appraisal costs typically range from $400 to $700, depending on the property’s location. - Is a licensed & bonded contractor bid required?
In most cases, we require a licensed and insured itemized contractor bid before processing the loan. - Is my information kept confidential?
Absolutely! Your privacy is of the utmost importance to us. Any information you provide is completely confidential. If you want to work with a reliable, reputable company that treats you with professionalism, understanding, and respect—you’ve come to the right place!
Still have questions?
Contact us today! We’d be happy to assist you. Call us at 509-906-1339