Eligible Borrowers
The property is the primary collateral for each loan. You don't need to furnish financial statements or income tax returns to get a loan. However, your credit and ability to repay the loan are both considered in approving you as a borrower. If you would like to become an approved borrower, submit an application and  the application fee of $25.00. Once you are an approved borrower, Watershed will be able to provide you with a pre-approval letter to submit when making offers.

Eligible Properties
We lend on single family houses in Northern Virginia, Mayland Washington DC that appraise for $70,000 or more on an “after repair” basis. We do not lend on manufactured homes, condominiums, vacant land, commercial properties, mixed-use properties, multi-unit properties, or houses being moved to a new location.

Loan Amount
The loan amount is 70% of the “after repair value” of the property. Here are some examples:

After Repair Value	Loan Amount
$1,000.000	$750,000
500,000	350,000
250,000	175,00
125,000	87,500
70,000	49,000

Loan Funding
A part of the loan amount , equal to the estimated cost to bring the property to a good, marketable condition, is held back by the lender as a “rehab reserve”. Rehab reserve funds are released to you in draw payments as work is completed and inspected.

The balance of the loan amount is first applied at closing toward the purchase price and other acquisition related costs. If the remaining balance is more than your purchase price and other acquisition costs, you can receive up to $2,000 in cash at closing, and you can elect to have Watershed hold any remaining excess in an escrow account to make future interest payments for you, or to reduce the loan amount. If the balance is less than your purchase price and other acquisition costs, you will need to bring a cashiers check for the difference to closing.

Terms
First lien notes only, with a mortgagee (lender) title policy.

Interest only payments.

A loan term of 6 months. A 3 month extension is available if you are not in default and have a good payment history. A second extension for up to 3 months is available at the lender's discretion.

A builder's risk hazard insurance policy or a vacant dwelling policy for the 6 month loan term is required to be in force at closing. Flood insurance is required if the property is in a FEMA designated flood zone.