Lima one Capital - temp hold rental funding
Just received this one from LIMA ONE.
Due to the ongoing volatility and uncertainty in the capital markets, Lima One has made the difficult decision to put a temporary hold on all Rental loan closings. This change will impact all closings after March 31, 2020. In addition, we are no longer accepting new Rental loan applications during this temporary hold period.
Lima One continues to underwrite and close loans during this period but must temporarily modify our loan programs as the financial markets dictate. We continue to accept applications and fund Fix and Flip loans. However, as we announced earlier in the week, the markets and our capital partners require us to originate these FnF loans at lower LTVs and with other structural changes. Similarly, we will continue to accept multifamily loan applications but will only fund these loans on a case-by-case basis as the market appetite for these loans is changing too rapidly to have any stable guideline changes. Please contact your Lima One sales representative for details about these changes and to submit your application.
We recognize the challenges and disruptions this causes our customers and to Lima One’s operations. Please know we do not take these difficult decisions lightly. We believe they are critical for the viability of Lima One and the entire private lending space.
We will continue to monitor the market environment and sincerely hope to be able to reopen our Rental lending as well as expand FnF and Multifamily programs as market rationality returns. We commit to keeping you updated routinely (via limaone.com) to changes and updates as they occur.