Frequently Asked Questions

What type of loans does AlphaFlow purchase?

AlphaFlow purchases short term, business purpose, first lien loans on residential real estate. This includes fix and flip, refinance, cash-out refinance, bridge and ground up construction loans.

What size loans does AlphaFlow buy?

We buy loans ranging in size from $75,000-$1,000,000.

Does AlphaFlow have a maximum term?

AlphaFlow will purchase loans with an initial term of no more than 13 months.

What is the minimum credit score on a loan AlphaFlow will purchase?

The minimum credit score for a borrower/guarantor is 620.

What types of properties does AlpahaFlow buy loans for?

AlphaFlow purchases loans on Single Family and Multi Family Residences up to nine units.

Are there any state restrictions?

AlphaFlow will review loans in all 50 states.

What are the maximum leverage ratios for the loans?

AlphaFlow will purchase loans with up to 80% of as-is LTV, up to 85% of LTC and up to 75% of ARV. Refinance and ground up transactions are subject to tighter leverage constraints.

What is the servicing process for loans after purchase?

AlphaFlow understands how much value borrower relationships have to our lenders. While AlphaFlow does purchase loans with servicing released, we still want our lenders being ‘the face’ of the loan to the borrower to maintain those relationships.

What servicing companies do you have as sub-servers on the loan?

AlphaFlow works with several servicing groups including Cohen Financial, FCI and BSI.

Do you originate loans at AlphaFlow?

AlphaFlow currently does not make loans directly to borrowers, we solely purchase loans from lenders.

Does AlphaFlow table fund loans for lenders?

AlphaFlow currently does not table fund loans, and only purchases closed loans. Given how important table funding is to the growth of our partners, we’re working to put a program in place that will allow us to table fund loans during Q3.

Does AlphaFlow work with brokers?

No, AlphaFlow currently only works with direct lenders.

What rate does AlphaFlow currently pay for loans?

AlphaFlow purchases loans anywhere from 7.5%-12% depending on the loan.

How does the pricing work with AlphaFlow?

We use an algorithmic pricing model that takes into account transaction, borrower, property and local market related factors when determining the interest rate at which AlphaFlow will purchase a loan. Any difference between our purchase rate and the interest rate of the loan will be sent back to the lender when the borrower makes their monthly payment (known as a Yield Strip).

Does AlphaFlow purchase ground-up loans?

Yes, AlphaFlow can purchase ground-up loans as well as acquisition, rehab and refinance loans.

Do you take foreign nationals as borrowers?

We have the ability to buy loans from any partners who have borrowers with active business licenses and the borrower must have a credit score.

How long does it take for you to process a construction draw?

We aim to process a construction draw in 24-48 hours after the request is submitted to our servicing team.

How long does the loan purchasing process take?

We can have a loan purchase completed in as quick as 5 days.

Does AlphaFlow require appraisals?

No, AlphaFlow doesn’t need an appraisal but does need a third party valuation, such as a BPO.

Will AlphaFlow buy seasoned loans?

Yes, we buy seasoned loans but the loan must have at least 3 months until maturity.

Do you do a/b pieces?

No, AlphaFlow will only purchase first-lien loans, and those loans cannot have second liens.

Will you buy non-performing loans?

AlphaFlow does not purchase non-performing loans.

Will you buy loans in Judicial states?

Yes, we buy loans in all 50 States.

How much track record do I need before I can sell loans to AlphaFlow?

We traditionally like to see at least one year of track record from our partners, but can be flexible to help new and growing lenders.

Will AlphaFlow buy commercial real estate loans?

At this time AlphaFlow will only purchase loans on Single Family and Multi Family (up to nine units) properties.

Will AlphaFlow do blanket loans?

Yes, Alphaflow will review portfolio or blanket loans.

How does a lender sign up for AlphaFlow’s loan buying program?

Fill out our ‘Get Started’ Form, and someone from our team will reach out to discuss the process with you further!

back to top