Broker Program Onboarding

Broker Program

Welcome to the Team

Lima One Capital’s nationwide network of brokers have access to industry-leading nancing. Our aggressive leverage, competitive rates, transparency, and top notch customer service sets us apart from competitors. We offer a comprehensive suite of FixNFlip, Rental, and Multifamily products to ensure that we can service all your clients’ real estate investment needs.

ManyMany of our products offer Participation Points – points paid to you out of Lima One Capital’s retail origination fee. This effective fee discount is exclusively offered to brokers to help keep the overall cost to your client low. With our Premier Broker Program, you can earn nearly $30,000 a year in bonus compensation - this is on top of your standard broker fees and participation points

WWe’re always looking for ways to improve. Feedback from brokers has consistently ranked as one of the top reasons for program and process changes. Your diverse knowledge of the industry is a trait we value greatly. If there is anything we can do to enhance the Lima One Capital experience, please reach out to our Broker Relations Team via phone or email.

We appreciate you seeking out Lima One Capital and look forward to an incredibly fruitful relationship.

Dedicated Analysts

who work exclusively

on brokered deals

Same day

decisions on

Broker Submissions

You set your

compensation on

each deal

We protect brokers

on each and every

deal

BorrowerUnderwriting

Credit:

Minimum FICO Score - 600

Use middle of 3, lesser of 2 scores

Minimum of 2 scores are required

Must have tri-merged credit report

No bankruptcies in past 3 years

No foNo foreclosures, short sales, or deed

in lieu in past 2 years

Fraud and OFAC checks including

identity verication are required

Borrower’s Liquidity Requirements:

Down payment

(Based on Advantage Level)

Minimum of six (6) monthly interest

payments

10% of rehab budget

Origination feeOrigination fee

Broker fee

Borrower(s) must have a minimum of

$15,000 fully liquid

Arm’s Length Transactions:

Buyers must disclose relationships

with sellers or other transaction

parties in any manner

All income/credit/bank documents

that are over 60 days old must be

updated

Subordinate Financing:

Secondary or subordinate nancing is

permitted. Applicant requesting to use

subordinate nancing, must meet under-

writing requirements individually before

the subordinate nancing will be taken

into consideration.

Vesting:

Limited Liability Corporation

Limited Partnerships

General Partnerships

Corporations

Land Trusts

Maximum of two borMaximum of two borrower entities

(co-borrowers) per loan

Borrower Requirements:

Most recent tax returns are required

2 months of bank statements, including

average balances, are required

At least 2 months of asset verication

are required for all loans

The value of any stock, bond, or mutualThe value of any stock, bond, or mutual

fund is reduced by 50%

The value of retirement accounts are

reduced by 50%

PropertyUnderwriting

Eligible Property Types:

1-4 Unit Investment Property

Planned Unit Developments

Properties with <2 Acres

Log homes (if common to the area)

Properties subject to oil or gas leases

Must be non-owner occupiedMust be non-owner occupied

Minimum gross living area of 700 sq. ft.

Must be non-owner occupied

Ineligible Property Types:

Owner-occupied properties

Condos

Manufactures or mobile homes

Condotels

Time shares

Unique pUnique properties (except for log homes)

Working farm and ranches

Unimproved land: Not inteded for build

Property currently in Litigation

Commercial enterprises

Zoning violations including residential

zoned commercial

Single family pSingle family properties with less than

700 sq.ft. of living area

Mixed use properties

Properties with more than 2 acres

Fractional ownership

Properties encumbered by purchase option

Properties that appraise for <$25,000

PProperties with values signicantly in

excess of the predominant value of the

subject’s market area may be ineligible

Appraisal Requirements:

All loans require a full form 1004/1025 appraisal with internal property pictures.

Appraisals must be dated within 180 days of origination.

Ineligible States:

Alaska

Hawaii

Idaho

Maine

Montana

North DakotaNorth Dakota

South Dakota

Vermont

Puerto Rico

U.S. Territories including Guam and

Virgin Islands

ConstructionInspections

Initial Budget Inspection:

Lima One Capital Inspector conducts

site inspection and budget review

noting any deciencies

All deciencies in budget are required

to be included in amended budget

Construction Escrow Inspection:

Draw request will detail the work completed

and amount requested. All requests

based on the approved rehab budget

at origination

On-site inspection required to verify

completed work and project status.

Inspection report and photos provided

to Construction Escrow

Construction Escrow Manager reviews and

approved all draws prior to disbursement

of funds. 2-4 business days.

Inspection Fee: $150.00

Turn Around Time: 2-4 Business Days

Post Closing:

Lima One Capital will hold funds for

rehabilitation budget in escrow

account

Loan Program

Loan Program

Purpose: For the investor looking to bridge the gap between short term and

permanent nancing

Term: 2 Year Interest Only Balloon

Broker Points: 0.5% paid from Lima One

Capital; additional points on top

Prepayment Penalty: 5% UPB,

First 6 Months Financing Types: Purchase,

Renance - Rate and Term, Cash-out

Minimum Loan Amount: $50,000

Minimum Property Value: $75,000,

Per collateral property

Extension: 12 month extension

available for 1% fee

LTV Adjustors (Compounding)

Rate Term Renance -5%

Zip 2-5% Decline -5%

Multifamily/Mixed Use -10%

Zip 150-200 DOM -5%

Cash-out Renance -10%

RCR (Property Level) Calculation:

Gross rents divided by the Monthly Interest

Only Payment

Lease income is derived from rent survey

(Form 1007) and current in place lease, if

applicable

Example of RCR Calculation:

$100,000 Loan; $950 Monthly Rent; 7.6% Rate

Monthly Payment: $633.33

$950/$633.33 = 1.5

PropertyUnderwriting

Eligible Property Types:

Must be rent-ready condition

Must be non-owner occupied

Single Family Residential,

minimum 700 sq. ft.

2-4 Family, minimum 500 sq. ft. per unit

WWarrantable condominiums,

minimum 500 sq. ft.

Multifamily apartment buildings

Mixed use buildings (Residential >50%

total property sq. ft.)

Appraisal Requirements:

All loans require a full Form 1004, 1073,

1025, or 1050 appraisal

A market rent analysis is required for

all properties

Appraisals must be dated within 120

days of closing

Ineligible Property Types:

Timeshares

Condotels

Mobile homes

Properties subject to purchase option

Raw land/Working farms/Ranches/

Orchards

Non-warrantable condos

Properties affected by natural disasters

Properties not compliant with local

zoning regulations

Properties with known adverse

environmental conditions

Eligible States:

Southeast - AL, FL, GA, KY, MS, NC,

SC, TN, VA, WV

Northeast - CT, DC, DE, MA, MD, NH,

NJ, NY, PA, RI

Midwest - IA, IL, IN, KS, OH, MI, MN,

MO, NE, WI

Southwest - AR, LA, OK, TX

West - AZ, CA, CO, NM, NV, OR, UT, WA,

WY

Loan Program

Purpose: Designed for the real estate investor purchasing or renancing investment

properties to hold for business purposes

Prepayment Penalty:

5% stepping down 1% every year

Minimum Loan Amount: $50,000

Minimum Property Value: $75,000

Single Collateral Loans, $60,000

Portfolios

Broker Points:

On top of Lima One Capital Origination Fee

Eligible Borrowers:

U.S. Citizens

Client must own primary residence

or >1 rental properties

Term: 30-year xed or 5/1 ARM,

full amortization

5/1 ARM

DSCR Calculation: Gross Rents/PITIA

30-Year Fixed

BorrowerUnderwriting

Credit:

Minimum FICO score: 660

Use middle of 3, lesser of 2 scores

Minimum of 2 scores are required

Must have tri-merged credit report

Minimum 24 months of credit history

No bankruptcies in past 4 yearsNo bankruptcies in past 4 years

No foreclosures, short sales, or deed

in lieu in past 3 years

Minimum of 3 active trade lines per

borrower for at least 24 months

Asset Verication:

Most recent 1 year tax returns are required

2 months of bank statements, including

average balances, are required

At least 2 months of asset verication are

required for all loans

The value of any stock, bond, or mutualThe value of any stock, bond, or mutual

fund are reduced by 30%

The value of retirement accounts are

reduced by 50%

Asset Verication:

6 Months liquid reserves (PITIA) per

Lima One Capital nanced property

Reserves are calculated net of

downpayment

First 3 months of PITIA are paid in advance

Vesting:

Corporation, LLC, and Partnerships

are allowed

No more than 2 individual borrowers

per loan

Fraud and OFAC checks including

identity verication are required

Arm’s Length Transactions:

Buyers must not be related to Sellers

in any manner without full

disclosure

Subordinate Financing:

Not allowed, unless pre-existing on a

rate and term renance

PropertyUnderwriting

Purpose: Designed for the real estate investor purchasing or renancing investment

properties to hold for business purposes

Eligible Property Types:

Single Family Detached

1-2 Family 3-4 Family

Townhomes Warrantable Condos

Must be non-owner occupied

Must be <2 acres

Minimum gMinimum gross living area of 750 sq. ft.

Ineligible States:

Alaska North Dakota

Hawaii South Dakota

Idaho Vermont

Maine

Montana

Ineligible Property Types:

Commercial Property

PUDs Timeshares

Condotels Non-Warrantable Condos

Mixed Use Fractional Ownership

Mobile Homes Unimproved land

WWorking Farms/Ranches/Orchards

Homes with deferred maintainance

Multifamily housing greater than 4 units

Unique or over-improved properties

Geodesic domes or Earth Homes

Properties subject to oil or gas leases

Properties affected by natural disasters

Appraisal Requirement: All loans require a full Form 1004 appraisal with internal

property pictures. Appraisals that are over 120 days old must be updated

Submission Process

FixNFlip - Last Name, First Name (123 Main St.)

Rental30 - Last Name, First Name

Rental2+1 - Last Name, First Name (456 Court Ln.)

Processors: Please reference the name of the broker in all communication

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Visit the Broker Library and download the Broker

Submission form

Submit the full underwriting package once an

approval has been issued

Have the client apply using your unique link

(Provided once your broker agreement has been

processed)

Email Subject Format for Broker Submissions