Run the numbers first.
Plain-English guides so your loan request arrives sharper. Educational only — not a quote, approval or financial advice.
ARV, LTC and LTV explained.
ARV · After-repair value
The projected value of a property after renovations are complete. Many lenders cap total financing at a percentage of ARV; the cap depends on the lender and the deal.
LTC · Loan-to-cost
The loan amount divided by total project cost (purchase plus rehab or construction). It shows how much of the project the lender funds versus your own investment.
LTV · Loan-to-value
The loan amount divided by the property’s current value — typically the lower of purchase price or appraised value. It drives your required down payment.
Example: a $200,000 purchase with a $50,000 rehab has a $250,000 total cost. A $212,500 loan would be 85% LTC. Illustrative numbers only.
What “strategic leverage” means.
Bringing less cash to closing can let investors keep liquidity and redeploy it into the next opportunity. For investors running several projects, higher leverage can help them grow faster.
Leverage also adds risk: higher payments, thinner margins and less room if the market moves. We help you weigh both sides.
Draws, non-Dutch interest and interest reserves.
Advance draws
Part of the renovation or construction budget is funded up front so work can begin. After each phase is completed and verified, the next draw is released.
Non-Dutch interest
Interest is charged only on funds disbursed, not the full approved loan amount, which can reduce carrying costs during the project.
Interest reserve
Interest payments may be built into the loan amount (escrowed), reducing monthly out-of-pocket payments during the project.
How DSCR rental loans are evaluated.
DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, association dues). Illustrative example: $2,400 ÷ $1,900 ≈ 1.26.
Lenders also weigh credit, leverage, reserves and property condition. Each sets its own minimum DSCR. DSCR Rental loans →
Documents to prepare.
- Purchase contract or current mortgage statement
- Scope of work and line-item budget (rehab or construction)
- Comparable sales or rent estimates
- Track record of completed projects
- Entity documents (LLC / corporation)
- Proof of funds and reserves
- Insurance quote
Please don’t email SSNs, bank statements or ID documents. A secure upload link will be provided when needed.
Glossary.
Frequently asked questions.
How fast can a deal close?
It depends on the transaction’s complexity and how quickly documents, appraisal and title are complete.
Which states are eligible?
Middle Tennessee plus other eligible U.S. markets through approved lending partners.
How do I get started?
Send a short inquiry through our contact page or email Loans@thetruevineco.com. A loan specialist will follow up.
Are rates and terms guaranteed?
No. All terms are set by lending partners and are subject to underwriting, appraisal, title review and approval.
Educational content only; not financial, legal or tax advice.
