FAQ

Frequently Asked Questions

• Where do you offer loans?

  We typically extend our loan services to various regions, including Houston, San Antonio, Dallas, and Austin, as well as smaller markets such as Waco, College Station, Beaumont, Corpus Christi, etc. However, our coverage extends beyond these areas, reaching 42 states in total. You can refer to the map on our homepage to check if your state falls within our service range.

• What are the rates of your loans?

  Our loan rates commonly consist of 2 points and 12% interest. For Texas borrowers, we offer a 70% Loan To Value (LTV) with no minimum deposit, and our loyalty program can potentially increase the LTV to 75%. Outside Texas, we provide various products, with a popular option being 90% of purchase and 100% of rehab, up to 70% LTV.

• What factors could affect my rate?

  We assess both the borrower and the property for all our loans. Factors affecting rate and term include the borrower's experience, liquidity, and net worth, as well as the property's type of usage, extent of renovation, and after-repaired value (ARV). Our approach allows us to be flexible and creative in accommodating diverse loan scenarios.

• What other fees are there?

  We maintain transparency in our fee structure. Fees include the origination fee, processing fee ($400), document fee for the attorney ($450), and servicing set-up fee ($195). Additional fees, such as title fees and pre-paid interest, are displayed on our calculator. We do not charge points on the loan exit or an extension fee at six months, unlike many other lenders.

• Do you do commercial, new construction, or multi-family loans?

  Yes, we offer these types of loans. For more details, please contact us at info@sparklending.com.

• Do you conduct a hard credit pull?

  We do NOT perform credit pulls on borrowers. However, we do verify liquidity available.

• How do you determine liquidity?

  Liquidity is determined to ensure that borrowers have sufficient reserves to cover closing costs, interest payments, and potential rehab overages. The liquidity requirement includes having six months of interest payments available, covering closing costs, and approximately 33% of the repair amounts in an account under the borrower's name. Specific liquidity requirements are outlined on the cash-to-close calculator.

• Do you cash-out refi's or loans on turn-key properties?

  Yes, we provide these types of loans. For more information, please contact us at info@sparklending.com.

• What is the process for draws?

  We typically receive an inspection report within 48-72 hours and disburse funds the following day, often completing the process even more swiftly. Simply fill out a draw request in your borrower portal, or submit the form that can be provided upon request and at closing. 

• Is there a fee for draws?

  You are responsible for the cost of an independent inspector via CQ servicing to verify the work completed to date. This cost is usually $200.

• Do you require an appraisal and a survey?

  Yes, we require both an appraisal and a survey for all loans. Appraisal costs are paid directly by the borrower to the appraisal company. Surveys can be ordered at the opening of title. In many cases, existing appraisals and surveys can be utilized.

• Do you check our rehab budget on loan submission?

  Yes, we engage a third-party inspector from CQ servicing to verify your budget and make any necessary corrections or additions to ensure the project's smooth completion.

• How quickly can you close?

  In Texas, our aim is to close within 7 days, although frequently, we can expedite the process even further. For out-of-state transactions, we typically request 14 days for fix & flip loans and a 21-day close for any DSCR (Debt Service Coverage Ratio) loan in any market.

• Who is CQ Servicing?

  CQ Servicing is a valued third-party partner company of Spark Lending. We engage CQ Servicing independently to handle inspections, notes, and draw payments. As a highly customer-focused servicing company, their collaboration allows us to maintain a high level of borrower satisfaction and operational efficiency.

• What is the loyalty program?

  Our loyalty program is specifically designed for our Texas borrowers. If you have successfully paid off 5 or more loans with no missed monthly ACH payments, we offer the opportunity to increase the Loan To Value (LTV) leverage up to 75%. This program rewards our loyal borrowers with enhanced benefits and opportunities.