Ignite Funding provides homebuilders and developers with a reliable lending source throughout the Southwest. The advantage of borrowing with Ignite Funding is our ability to rapidly process and fund a loan, unlike conventional lenders.

The following criteria should be considered by Borrowers before sending a funding request.

Types of Loans

At Ignite Funding, we offer the following loan types:

  • Financing  or refinancing of non-primary residential or income-producing commercial structures
  • Acquisition or refinancing of undeveloped land
  • Development and construction of residential or commercial projects
  • Acquisition of distressed assets from regional banks, the FDIC, and other lenders

Loan-To-Value

Ignite Funding generally lends within the following loan-to-value ratio ranges depending upon property type, location, and other relevant factors associated with the property.

  • Land Acquisition | Up to 65% of the acquisition value of the land
  • Development | Up to 70%
  • Construction | Up to 75%

Funding Limitations

The per loan funding limits are $500,000 to $5 million.

Term

Loan terms are generally between 6 to 12 months. Extensions may be offered subject to additional fees. Longer term loans are considered on the overall project viability and strength of the borrowing entity.

Borrower Consultation

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Initial Documentation Requirements

Ignite Funding prides itself in knowing and understanding the needs of a Borrower. We proactively request information not only to better serve our Borrowers, but also to provide our Investors with a detailed overview of the property and borrowing entity.

The following information is required for each loan to complete the initial underwriting process:

  • Detailed description of the loan request
  • Intended exit strategy
  • Preliminary Title Report
  • Purchase or option agreement for the property
  • Documentation for borrowing entity (Articles of Incorporation, Operating Agreement, etc.)
  • Appraisal or Broker Price Opinion of the project completed within the last 6 months
  • General liability or hazard insurance
  • Current Financial Statements and two most recent years tax returns for the Borrower and Guarantor(s)
  • Phase I Environmental Report (if applicable)
  • Design plans for the project (if applicable)
  • Construction cost breakdown (if applicable)

Interest Rates

Depending on the loan type, interest rates typically start at 8% annually.

Origination Points

Loan origination points vary depending on the project type and loan term from 2.0% to 6.0%.

Personal Guaranty

A personal guarantor is required on most loans.

 

If your project meets the criteria outlined above, please fill out the Ignite Funding Loan Application and Agreement and email to NewLoanRequest@ignitefunding.com with all supporting documentation needed for the Underwriting Department to review and then set up a Borrower Consultation.