How Alvear Lending Underwrites Deals: What We Look for and Why

Jay Sookhakitch
Jun 30
2 min read

Hands with pink nails hold a smartphone over a laptop on a wooden desk. A USB drive is nearby. Focused, tech-savvy mood. — A person holds a smartphone above a laptop, showcasing multitasking in a digital workspace.

When you're applying for funding on an investment property, you want to know exactly what a lender is looking for. At Alvear Lending, our underwriting process is built to be fast, clear, and investor-friendly.

Whether you’re flipping a house, building new construction, or refinancing a rental, here’s how we evaluate your deal—and why it matters.

We Start with the Property

Modern house with large windows under a vibrant pink and blue sunset sky, surrounded by trees and landscaped garden. Calm and inviting mood. — A modern home basks in the warm hues of a sunset, with sleek architecture highlighted against a backdrop of vibrant pink and blue skies.

The first thing we look at is the deal itself. Does the property make sense? Is there enough upside in the numbers?

Here are the basics we review:

Purchase price: Are you buying it at a good value?
Rehab or construction budget: Is it realistic and well-documented?
After-repair value (ARV): Is your projected resale or stabilized value supported by comps?
Exit strategy: Flip, refinance, or hold? We want to know how you'll pay off the loan.

If the numbers pencil out, you're off to a strong start.

Then We Look at the Borrower

Three people in a bright office. A woman in black signs a document, while two men in suits watch. Laptop, coffee, and notebook on table. — A businesswoman discusses an application with two clients in a modern office setting.

Unlike banks, we don't need perfect credit or tax returns. But we do want to understand who you are as a borrower.

We evaluate:

Experience: Have you done similar projects before?
Credit score: Minimums vary by program, but 660+ is a good benchmark
Liquidity: Do you have the cash to close and carry the project?
Entity structure: Most loans are made to LLCs, not individuals

If you're newer, that’s okay. We can often work with first-time investors—especially if the deal is strong.

Loan-Specific Requirements

Construction workers in orange and blue uniforms work on scaffolding against a gray building wall under bright sunlight. — Construction workers diligently operate on scaffolding, advancing the facade work on a high-rise building under a clear blue sky.

Each of our loan programs has a few specific things we underwrite for:

Fix and Flip

Max loan-to-cost (LTC): 85%
Max ARV: 70%
Full scope of work required

Ground-Up Construction

Max LTC: 85% (land + build)
Permits, plans, and builder resume required

Bridge Loans

Property condition and cash flow matter more than credit
Flexible on documentation

DSCR (Rental Loans)

We look at the property's income vs. expenses (Debt Service Coverage Ratio)
No income docs needed, just leases and rent roll

Why It Matters

Underwriting isn't just about protecting the lender—it's about setting you up for success. When we vet your project thoroughly, you're more likely to: