General Underwriting &

Documentation Requirements

“We look forward to closing your loan, or if we can’t do it, giving you a quick no.”

Brock Freeman
Chief Operating Officer

Take a few minutes to review our process and what we require for each stage of underwriting. Investing a bit of time now can save you a lot of time later and help you close your loan faster and smoother.

4 Business Days

Response target per underwriting stage
🎯

3 Weeks

From paid Term Sheet to closing

High Close Rate

On loans where we issue a Term Sheet

Loan Process Stages

Four stages from first scenario to closed loan. Click any stage to jump to its documentation requirements.

Stage 3 · For Term Sheet Underwriting

4 business days
How Term Sheet Underwriting Works

We close a high majority of the loans for which we issue Term Sheets. To evaluate the loan during Term Sheet Underwriting, we look for a loan request narrative outlining key facts, opportunities and risks, timeline and exit plan, the borrower and property financials and background (i.e., PFS & SREO, P&L / pro forma, rent roll) that should already be ready if the borrower is serious about moving forward with a loan, along with our full application online.

As a short-term bridge lender, our goal is for the borrower to successfully exit our loan by qualifying for the long-term financing that you as a broker transition them to. When we see that clear pathway, we move forward with issuing a Term Sheet.

We first send the Term Sheet to you, so you can check your fees and terms. After you approve, the Term Sheet is sent to the borrower, with you copied. Once the borrower approves, they pay the $995 Due Diligence fee and the property valuation fee.

Required for All Borrowers
Items Required for Term Sheet Underwriting

Start Here

When you are ready for us to start Term Sheet Underwriting, here is what we need from every borrower.

  • Our full loan application online (entries from your quick-app loan quote request will carry over)
  • Loan Request Narrative — key facts, opportunities, risks, timeline, and exit plan 📎 Template & Guide
  • Personal Financial Statement & Schedule of Real Estate Owned for each guarantor 📎 Template Investment: include 2-yr history
Important: All financial statements must be dated within 90 days of projected closing date.
By Property Type
Property Type

Investment Properties

Required Documents

  • 12-month P&L (may be waived if seller refuses to provide) 📎
  • Pro Forma — 2-year forward-looking forecast with income & expenses 📎
  • Rent Roll 📎
DSCR Thresholds
During KCG bridge loan< 1.0 OK
By end of month 12≥ 1.2 required
What we look for Property qualifies for standard long-term financing terms with DSCR ≥ 1.2 by the end of the 12-month bridge.
Property Type

Owner-Occupied Properties

Required Documents

Last year + current year-to-date for each:

  • Business Cash Flow Statement
  • Profit & Loss Statement
  • Balance Sheet
What we look for Borrower in business ≥ 2 years with a clear path to service payments and qualify for long-term financing within the 12-month bridge term.
By Transaction Type
Transaction Type

Purchases

Additional Documents

  • Purchase & Sale Agreement (required)

Uploading other documents you have on hand will help speed things up and lessen surprises post–Term Sheet.

Tip The more complete your initial submission, the faster we can move to Term Sheet.
Transaction Type

Renovations

For renovation or partially completed properties, a recorded video walk-through may be required before Term Sheet issuance.

Video Specifications

FormatOne continuous, unedited recording (no stitched clips)
TypeRecorded (not live), date-verifiable
ScopeAll interior & exterior areas

Must Capture

  • All units and rooms (360° view per room)
  • Common areas, utility rooms, building systems
  • Basement and attic (if applicable)
  • Exterior façades, grounds, and roof (where visible)
Video must be in form and substance satisfactory to KCG. Failure to provide a complete and acceptable video may result in the loan request not moving forward to Term Sheet.

Stage 4 · Due Diligence to Closing

3 weeks from paid Term Sheet to closing
How We Underwrite in Stage 4

We focus on flexible, unconventional, and creative loan solutions. We may take on more risk in certain areas, such as high vacancy in a property or poor borrower credit.

To counterbalance this, we look for offsets such as borrower "skin-in-the-game," property investment experience, liquid and semi-liquid assets that can be used if needed, and other mitigating factors.

We review the borrower's claims for a high say/do ratio. To balance risk, for example, the challenges on the property can be offset by a borrower with experience. Alternatively, for borrowers with financial or credit issues, including taxes, is there enough equity in the property to provide cash-out to solve these issues.

$995 underwriting fee is paid at closing.
Post-Term Sheet Due Diligence

Kickoff Conference Call

To help you close faster and avoid surprises, we'll schedule a brief kickoff call with you and the borrower once the Term Sheet is signed and credit is reviewed. This call ensures everyone is aligned on next steps and remaining documentation before full underwriting begins.

What to expect: 20–30 minutes, all three parties (broker, borrower, KCG underwriter).

Outcome: a shared document checklist and timeline for the 3-week path to closing.

What You & the Borrower Provide
Borrower-Supplied

Entity & Personal

  • Signed Borrower Authorization and Certification for each guarantor, plus IRS tax transcript authorization
  • Last 2 years of Federal Tax Returns for each guarantor
  • Last 2 years of Federal Tax Returns for entities required to file; for owner-occupied, also the income-producing entity
  • Personal and entity bank or other liquid asset statements
  • Entity legal formation and registration documents
What we look for No fixed global DTI ratios — we remain flexible. Tax returns and bank statements let us confirm taxes are filed and paid, and help prevent fraud.
Borrower-Supplied

Property

  • Investment properties: lease agreements (or estoppels)
  • Planned rehabs: rehab summary, budget, and plan; contractor renovation bids may be required
  • Loan broker's written explanation of exit plan, including target lender name and program (not required on multifamily)
  • Property & general liability insurance coverage; builder's risk coverage as necessary
What we look for A credible exit path — clear lender, program, and timing — so the 12-month bridge has a real off-ramp.
What KCG Obtains
From External Sources

We Will Be Obtaining

Property Valuation
For loans under $500k, obtained from Clear Capital. Full appraisal required for larger loans. Report is shared with broker and borrower.
Existing, recently completed appraisals may be accepted on purchases with KCG approval.
EnviroPreScreen
Obtained from CREtelligent.
Title Commitment & Escrow
Refinances only: setup via Res/Title.
Credit Report & Legal Search
Credit Report; Bankruptcies, Liens & Judgments Search.
What we look for: 600+ Credit Score (or mitigating factors); no bankruptcies or foreclosures in last 5 years.
Criminal Background Check
Standard background screening for each guarantor.
IRS Tax Transcripts
Obtained via TaxStatus.
What we look for: Borrower has filed taxes; tax due, if any, matches borrower PFS.
Bank Verification
Owner-occupied: business account balances and transaction history via Instant Bank Verification (IBV) from Microbilt.
Underwriting Review
Full risk review across property, borrower, and exit plan.