Lender's Interest Rate and Fees
The annual interest rate for the first 3 months of the loan is 12% and the second 3 months is 14%.

Interest payments can be paid by cash, check or credit card.

The lender doesn't charge any up-front fees, back-end fees, or pre-payment penalties.

After the initial 6 month loan period, a three month extension will be cosidered if the renovation is complete and the client is current on interest payments and taxes. A loan extension fee of 1% of the loan amount is payable for the extension, and the annual interest rate during the extension is 16%.

After the first extension, an additional 3 month extension is available at the lender's discretion. A loan extension fee of 1% of the loan amount is payable for the extension, and the annual interest rate during the final extension is 18%.

Watershed's Fees
Smaller fees for bigger loans!  Our loan origination fee is between 4.0% and 5.0% of the loan amount, based on  the size of the loan and your credit history. This fee is paid from the loan funds at closing.

Fee Rebate Program: If the loan is repaid within 90 days, 20% of Watershed's loan origination fee will be rebated to you.

Other fees:

An initial inspection, appraisal, and flood determination fee of $750, which you pay when you receive pre-approval of the loan.

A document preparation fee of $750 from the law firm that does our legal documents, which is paid out of the loan funds at closing.

Draw inspection fees of $200, which are deducted from each draw payment.

Both the initial and draw inspection fees are increased $50 for properties located more than 50 miles from Alexandria City center.

Watershed's Competition
Our fees are fully disclosed and you won't have any surprises at closing. Unlike others, neither Watershed nor its lender has any junk fees such as loan application fees, handling fees, processing fees, underwriting fees, administrative fees, escrow management fees, loan payoff fees, wiring fees, and/or high priced document fees.

In evaluating alternatives, you should make sure you get all the facts about fees others charge so you can make an informed business decision.