Got Questions? We’ve Got Answers
Find solutions to your most common construction loan questions, all in one convenient place.
General Questions
What is Archwest and what do you do?
Archwest is a national, direct, private lender (non-bank) specializing in financing solutions for residential real estate investors. With a proven track record and deep industry expertise, we are the go-to partner for experienced investors seeking fast, flexible and reliable funding.
What kind of loan products do you offer?
We provide short-term bridge loans for fix-and-flip projects and new construction, as well as long-term financing solutions for rental properties. Our flexible loan options are designed to support real estate investors at every stage of their investment journey.
What property types do you lend to?
We finance non-owner-occupied properties, including single-family homes, condos, townhouses (1-4 units), and small multifamily assets (5-9 units). Our tailored lending solutions help real estate investors scale their portfolios with confidence.
Are you a hard money lender? Mortgage broker? Residential lender?
We are not a hard money lender, mortgage broker, or traditional residential lender. We are a direct, private, specialty lender, that focuses on financing non-owner-occupied investment properties. We provide real estate investors with reliable lending solutions that is tailored to their needs.
What is the difference between an Archwest investment loan and a residential home loan?
We provide business financing solely to investors in non-owner occupied residential properties. Our borrowers use the proceeds from our loans to finance their real estate businesses as opposed to consumer borrowers who use their proceeds to finance their primary residence.
Do you report to the credit bureaus?
No, we do not report to credit bureaus, as we are a commercial lender focused on financing investment properties rather than consumer loans.
How long does the closing process typically take?
Fast Closing Timelines
Our expert team is committed to working quickly and efficiently to meet each borrower’s specific needs.
- Bridge Loans: When all required documentation is ready to go, loans can be completed in as little as one week from application to closing.
- Fix & Flip Loans: These generally close within two weeks.
- Ground-Up Loans: These generally close within three weeks.
- DSCR Loans: These generally close within three weeks.
- Rental Portfolio Loans: These generally close within four weeks.
Timelines may vary based on borrower qualifications, property details, and market conditions. In addition, once a borrower is approved, future transactions can close even more quickly.
What states do you lend in?
Archwest is a nationwide lender with limited restrictions and licenses pending in a small number of states. See our Lending Map for more information.
Do you have a seasoning requirement?
Our term loans typically do not require seasoning on leases. However, in certain cases, seasoning may be necessary to determine leverage based on property value rather than cost basis.
Is there a Prepayment Penalty?
Term Loans: Each loan can have a different prepayment structure, ranging from up to five years down to zero. Borrowers can choose between yield maintenance and stepdown options based on their needs.
Bridge Loans: No prepayment penalties apply.
Borrowers
What kind of real estate experience is needed to qualify?
We work with a wide range of investors, from those who have completed one fix-and-flip project to those with extensive rental portfolios. Experience requirements will vary by loan product. Contact us to discuss eligibility based on your investment background.
- Fix & Flip Loans: Typically require at least one completed project in the past 36 months.
- Ground-Up Construction Loans: Generally require three completed projects within the same timeframe.
Do you finance personal residences (owner-occupied), manufactured/mobile homes, co-ops, assisted living facilities, mixed-use, or commercial assets?
No. We do not finance owner-occupied residences, manufactured or mobile homes, co-ops, assisted living facilities, mixed-use properties, or commercial assets. Our focus is exclusively on non-owner-occupied residential investment properties.
Will Archwest lend on mixed-use or commercial assets?
No. We only finance residential investment assets (SFR, townhome, condominium, and small multifamily). We do not lend on commercial or mixed-use assets (e.g. retail with a residential component). We also do not finance owner-occupied residences, manufactured or mobile homes, co-ops, and assisted living facilities.
Do I need a special purpose entity for my loan?
Yes, as a commercial lender, we require borrowers to use a Special Purpose Entity (typically an LLC) for their loan. If you don’t have one, don’t worry—forming an LLC is a straightforward process, and our team is here to help guide you through it.
Can I obtain a rental loan for properties that are not currently leased?
Yes, we do offer rental loans for properties that are not yet leased. However, these loans are typically available at a lower leverage to account for the vacancy risk.
Do you lend to foreign nationals?
Yes, we actively work with foreign nationals and consider them an important part of our business. Our lending solutions are designed to support international investors looking to finance U.S. real estate.
Do you have minimum credit scores?
Yes, a minimum average FICO score of 680 is generally required for loan eligibility.
How do borrowers get started?
You can begin instantly and obtain a quick quote through this easy link: Get Started.
Once complete, a member of our team will connect with you to gather more information and prepare a term sheet based on the specifics of your loan.
Brokers
Do you work with brokers?
Yes, we work extensively with brokers and are always looking for new partnerships. Connect with our team today to discuss questions such as broker compensation and protection. Visit Broker Page
How do brokers get started?
Brokers can get started by giving us a call or completing a short form on the Broker Page to request a meeting with a member of our team.
Products
Do you offer non-recourse loans?
Yes, we offer both recourse and non-recourse rental loan options. Recourse loans are personally guaranteed by the borrower or operator, while non-recourse loans are secured solely by the underlying property, with exceptions for instances such as fraud or bankruptcy.
Do you do finance rehab expenses and ground up construction?
Yes, we provide rehab financing for fix-and-flip and fix-and-hold projects, as well as ground-up construction financing.
What is DSCR (debt service coverage ratio)?
DSCR measures the relationship between a property’s annual net operating income (NOI) and its annual mortgage debt service (principal and interest payments). For rental loans, we use DSCR to assess how much financing can be supported by the cash flow generated from the borrower’s portfolio.
What is LTV (loan to value) and how is it used to determine the proceeds of my loan?
LTV measures the loan amount relative to the current value of the properties securing it. We use LTV to determine the maximum loan size for rental loans and the total proceeds available for bridge loans.
What does Yield Maintenance mean and how does it work?
Yield maintenance applies exclusively to our rental portfolio product. As Archwest intends to securitize notes in the CMBS market, yield maintenance is necessary to ensure consistent returns for bond investors. If a loan is repaid within the yield maintenance period—54 months for a 5-year loan and 114 months for a 10-year loan—the borrower remains responsible for the accrued interest over the remaining life of the loan. This is a non-negotiable aspect of our lending platform.
Example:
- Loan Assumptions: $1,000,000 loan, 5-year term, 6% coupon, 54-month yield maintenance period.
- Asset Sale Scenario: If an asset from the loan pool is sold after 2 years, it would be subject to:
- 120% Release Clause: To maintain loan security, the borrower must pay down 120% of the financed balance on the sold asset. For example, if the asset is valued at $100,000 with $75,000 financed, the borrower would repay $90,000 ($75,000 × 120%), reducing the outstanding loan balance to $910,000. Ultimately, 100% of balance is repaid (not 120%).
- Yield Maintenance Penalty: The borrower would also owe interest for the remaining 36 months (60-month term – 24 months elapsed). The penalty is based on the difference between the coupon (6%) and the corresponding Treasury rate at prepayment. If the Treasury rate is 1.113% (hypothetical), the yield maintenance rate would be 4.87% (6% – 1.113%), applied over 36 months.
Yield maintenance is structured to protect against early prepayment risk while ensuring stable returns for investors.
Do your loans amortize?
Most of our rental loans amortize on a 30-year schedule, with interest-only options available for added flexibility. Our bridge loans are structured as short-term, interest-only loans with a balloon payment due at the end of the 6 to 24 month term.
What is the minimum number of properties needed for a rental portfolio loan?
Our Rental Portfolio Loan requires a minimum of 5 properties with no maximum limit. For less than 5 properties, we offer a DSCR rental loan that does not require a minimum but does have a maximum of 25.
What is the minimum amount I can borrow?
Depending on the loan product, we require different minimum amounts, starting at $55,000. Click here for a product overview which shows the minimum and maximum amounts for each product.
Are your interest rates fixed or floating?
The initial rate at closing is always fixed. For 5-, 7-, and 10-year ARM loans, the rate remains fixed during the initial term and then adjusts based on market conditions at the end of that period.
What happens to the outstanding balance on the maturity date of the loan?
The full outstanding balance is due at the loan’s maturity date, commonly referred to as a “balloon” payment. Contact us to explore available options and repayment strategies.
What are your insurance requirements?
We have state specific insurance requirements for both property and commercial liability. Contact us for specific requirements regarding your assets based on geography.
Do you require reserves?
We generally require that borrowers show reserves to cover the initial 6-12 months of their loan. We do not typically require that it be held in an escrow account, however. These conditions vary based on the specific loan and borrower.
Process
What is your turnaround time for a term sheet after application?
Depending on the complexity of the loan, we usually respond back to potential borrowers with a term sheet within 24 hours.
How long will it take to close my loan?
Fast Closing Timelines
Our expert team is committed to working quickly and efficiently to meet each borrower’s specific needs.
- Bridge Loans: When all required documentation is ready to go, loans can be completed in as little as one week from application to closing.
- Fix & Flip Loans: These generally close within two weeks.
- Ground-Up Loans: These generally close within three weeks.
- DSCR Loans: These generally close within three weeks.
- Rental Portfolio Loans: These generally close within four weeks.
Timelines may vary based on borrower qualifications, property details, and market conditions. In addition, once a borrower is approved, future transactions can close even more quickly.
Can I manage my own properties?
Yes. Borrowers can self-manage their own properties or use third party property managers.
Can I choose my own title/escrow company?
Yes, we strive to close transactions as quickly as possible based on your timeline. We can work with borrower-selected title and escrow companies or recommend trusted options to help streamline the process.
Where is Archwest based?
We are headquartered in Irvine, California. We lend nationwide and have team members across the United States.
Who are Archwest’s clients?
We are a national, direct, private (non-bank) lender specializing in financing for professional real estate investors. Our rates are more competitive than hard money loans and we require fewer documents than banks—striking the ideal balance between cost and convenience.
What is a Fix & Flip Loan?
A Fix & Flip Loan is a short-term financing solution designed for real estate investors looking to purchase, renovate, and resell properties quickly. Typically lasting 12 to 24 months, these loans cover both acquisition and renovation costs, providing the capital needed until the property is sold. We also offer refinancing options should the borrower decide to hold the property.
Do you fund the repair costs?
Yes, we can fund up to 100% of repair costs with our Fix & Flip and Fix & Hold loans.
How are construction draws handled?
Borrowers will work directly with our expert in-house construction team to request draws based on the budget approved during underwriting. Once a draw request and supporting documentation are submitted, we arrange for an inspector to assess the property. Their report is then reviewed by our team, and payments are quickly issued.
Tip: Draws are released based on completed work, so providing a detailed, itemized budget upfront helps streamline approvals and ensures a smooth funding process throughout construction.
Do you work with first time investors?
We typically work with experienced investors who have completed at least one prior investment. Experience requirements will vary by loan product. Contact us to discuss eligibility based on your investment background.
- Fix & Flip Loans: Typically require at least one completed project within the past 36 months.
- Ground-Up Construction Loans: Generally require three completed projects within the past 36 months.
How do I qualify for a loan
You can begin instantly and obtain a quick quote through this easy link: Get Started.
Once complete, a member of our team will connect with you to gather more information and prepare a term sheet based on the specifics of your loan.
Do you require appraisals
Yes, appraisals are required for all loans and are conducted by a third-party Appraisal Management Company (AMC). For bridge loans under $400,000, we may accept a Broker Price Opinion (BPO) from one of our national providers instead of a full appraisal.
What are your maximum and minimum loan amounts?
Our maximum and minimum loan amounts vary from product to product, starting from $55,000 to $50 million. Click here for a product overview which shows the minimum and maximum amounts for each product.
What is your maximum loan-to-value?
LTV limits vary by loan product. Our current maximum LTV for certain rental products is 80%, depending on overall borrower eligibility and whether the loan involves cash-out refinancing or debt restructuring. Our maximum Loan-to-Cost (LTC) ratio is 93.5% for certain bridge products.
Proven Team. Trusted Lending Partner.
With extensive industry expertise and an unwavering commitment to service, our team has successfully partnered with thousands of real estate investors on projects nationwide.
