Rates & terms
Straightforward numbers. No surprises.
Every term you'll see on your term sheet, spelled out here. The exact interest rate and origination fee depend on the program and the deal — we quote them up front.
Standard terms
The AVCG rate sheet
- Loan-to-value
- Up to 65% of ARVSome programs cap at 65% of purchase or completed value
- Term
- 12 monthsExtensions considered case-by-case
- Interest rate
- Program-specific — quoted on your term sheet
- Interest accrual
- Daily on outstanding balance
- Payment frequency
- Monthly, due by the 1st
- Property use
- Non-owner-occupied only
- Borrower vehicle
- Business entity + personal guarantee
- Position
- First-lien, always
- Origination fee
- Program-specific — quoted upfront
- Prepayment
- No prepayment penalty
Understanding LTV & ARV
Why we size to 65% of ARV
LTV — "loan-to-value" — is the loan amount divided by the property's value. Sizing to 65% of ARV means the completed property has at least 35% equity above the loan. That buffer is what protects capital when a project runs long or the market softens.
For a rehab, we use ARV — the after-repair value — because that's what the property will be worth when the work is done. For a bridge or refi, we use current value.
Interest math
How your monthly interest is calculated
Interest is calculated using a daily rate, then multiplied by the number of days in the month. Here's the formula and a worked example.
Example
$150,000 principal · 20% rate · January (31 days)
- Principal amount
- $150,000
- Annual interest rate
- 20% (0.20)
- Daily interest rate
- 0.20 ÷ 365 = 0.000548
- Days in the month
- 31
What we'll ask for
Documents to gather
- Business entity documentation (operating agreement or articles of incorporation)
- Driver's License or other government-issued photo ID
- Credit report (score and factors)
- Purchase agreement and any addenda
- Scope of work
- Proof of property insurance
Common questions about terms
Rates & terms — FAQ
ARV — "after-repair value" — is what the property is worth once the rehab is complete. We size loans against ARV so you have enough capital to complete the project.
We size to the lower of the estimated ARV and our own review. If we see a gap, we'll flag it early so you can adjust your scope, budget, or purchase price before you commit.
Rehab funds are released as draws against completed line items. For smaller items, photo evidence is often enough; larger items may require an inspection.
Yes — there is no prepayment penalty on any AVCG loan.