Kiavi Lending & Funding Review (2024)

Real estate ventures like wholesaling, house flipping, and developing rental properties are essentially goldmines, but you’ll need quite a substantial amount of capital to enjoy the profits they offer. We reviewed Kiavi, a recognized lender, to help you determine if they have the financial boost your investment dreams need.

• What Is Kiavi?
• What Loans Does Kiavi Offer?
• What States Does Kiavi Offer For Lending?
• How Kiavi Rental Loan Appraisal Work
• Pros Of Kiavi Lending
• Cons Of Kiavi Lending
• Kiavi vs. Competitors
• Final Thoughts: Is Kiavi Worth It?

What Is Kiavi?

Kiavi is a private, digital lender that caters to residential real estate investors such as wholesalers and house flippers. Established in 2013, the company harnesses the power technology in real estate to simplify real estate loan lending.

Kiavi has had one core mission: to breathe new life into the trillion-worthy aged homes nationwide by streamlining capital access for real estate investors. As of writing, Kiavi boasts a remarkable track record, having funded loans surpassing $16 billion. Its financial support has been pivotal in completing over 65,000 move-in-ready homes and rentals countrywide.

It’s noteworthy that Kiavi Mortgage wasn’t always a digital lender. The company’s journey began with crowd-sourced loans. Kiavi would invest in properties, sell shares to accredited investors, and offer the accumulated funds as real estate loans. However, in a strategic shift in 2021, Kiavi transformed into a digital lender exclusively focused on real estate financing. The transition was also marked by a name change from LendingHome to Kiavi.

Today, Kiavi is a property loan provider with over 400 employees. Its headquarters are in San Francisco, California, and another branch is in Pittsburgh. It has since bagged multiple prestigious accolades, including the Forbes Fintech 50 and the Best Digital Mortgage Platform honor by Finovate Awards. Explore our thorough Kiavi review to uncover what the platform brings to the table for real estate investors and whether it’s worth the hype.

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What Loans Does Kiavi Offer?

Kiavi Funding offers various loan products to seasoned and new real estate investors in markets like wholesaling. Kiavi loans include:

Fix & Flip/Bridge Loans

Kiavi fix & flip, or bridge loans, are short-term loan offerings designed for real estate investors looking to purchase, rehab, and resell an investment property. The platform requires no appraisals or asset verification for these loans. Instead, it employs an in-house valuation team to assess the applicant’s credit score and real estate exit experience, making it possible to prequalify borrowers online within as few as ten days. This greatly streamlines capital access if you’re a real estate investor looking to leverage impromptu off-market deals and any new investment strategy quickly.

Kiavi fix & flip loans have a 9.25% starting interest rate and range from $100K to $2.5 million. The company offers borrowers up to 90% of a project’s purchase rate and 75% of the after-repair value (ARV). Loan repayment periods range from 12, 18, to 24 months with interest only depending on the loan amount and specific terms. There are no application fees, but the origination fee is 0.5% of the principal loan amount.

Read Also: Fix & Flip Loans: A Beginner's Guide To Funding A House Flip

DSCR Rental Loans

Kiavi Funding offers debt-service coverage ratio (DSCR) rental loans tailored for real estate investors engaged in buy-and-hold strategies, such as rental property investments. Kiavi’s DSCR loans are also suitable for real estate investors seeking to refinance existing investments.

The hard money lender offers a generous 80% loan-to-value ratio for investors seeking to finance or refinance single-family rentals, rental condos, and PUDs to 2-4 units. Kiavi DSCR rental loan borrowers also enjoy an extended repayment period of up to 30 years, coupled with a competitive fixed interest rate of 7.75%.

While this is similar to what most traditional mortgage lenders offer, the platform does offer alternative repayment options for borrowers interested in flexible options. For instance, an interest-only loan option provides initial payment relief to investors strapped for cash. The platform also offers two full amortizing adjustable rate mortgage options, 5/1 ARM and 7/1 ARM, giving flexibility to borrowers who intend to sell or refinance before the rate adjusts.

Beyond the flexible repayment options, Kiavi borrowers enjoy the freedom of no prepayment penalties after the third year. Moreover, the lender requires no income, employment, or asset verification for its loans.

Kiavi DSCR loans also accommodate investors looking to borrow as an LLC or business entity, which helps protect the borrower’s assets. Additionally, investors with good FICO scores and excellent performance can simultaneously secure multiple loans, allowing them to scale their investment portfolios. Simply put, Kiavi DSCR rental loans significantly streamline capital access for investors looking to invest into buy and hold but are strapped for cash.

Rental Portfolio Loans

Kiavi offers rental portfolio loans to investors with an extensive portfolio of real estate deals. These loans are ideal for investors needing long-term funding on multiple rental properties, but they must have an investment portfolio with at least five rental properties. They enable the investor to consolidate multiple investment loans under one umbrella, offer the advantage of lower monthly premiums and interest rates, and help simplify loan repayment management.

Kiavi rental loans afford applicants access to loans worth up to $500K with a fixed interest rate of 7.75%. Borrowers get up to 80% LTV and enjoy extended, fully amortizing repayment terms of between 10 and 30 years. Investors looking to free up capital for other investments can also leverage the interest-only option, which allows them to repay only the interest for a fixed period. For investors looking to refinance an existing rental portfolio loan, Kiavi lending offers rate+ term and cash-out options. These options allow them to:

• Secure better interest rates or loan terms
• Tap into the equity they’ve built into their property for a higher loan amount

Read Also: 10 Best Real Estate Agent Software: Leads, Listing, & More

What States Does Kiavi Offer For Lending?

As one of the largest lenders in the country, Kiavi offers loans to nearly 80% of the country. Currently, Kiavi loans the following states:

• Alabama
• Arkansas
• Arizona
• California
• Colorado
• Connecticut
• Florida
• Georgia
• Illinois
• Indiana
• Kansas
• Kentucky
• Massachusetts
• Maryland
• Michigan
• Minnesota
• Missouri
• North Carolina
• New Jersey
• Nevada
• New York
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• South Carolina
• Tennessee
• Texas
• Virginia
• Washington
• Wisconsin
• West Virginia
• Washington D.C.

How Kiavi Rental Loan Appraisal Work

Kiavi doesn’t require a physical appraisal process for its fix and flip (bridge) loans. Instead, the company takes a modern approach by conducting the entire process online. Bridge loan applicants simply need to submit necessary documents, along with a voided check for the account to receive loan funds into, and the company will employ its technology and in-house evaluator to review and prequalify the borrower for a bridge loan online.

However, Kiavi does mandate a formal appraisal for its rental loans, which is a sensible requirement given their risky nature. Here’s a breakdown of Kiavi’s appraisal process for these loan programs:

Appraisal Inspection

After prequalification and submission of the application, including a third-party appraisal fee (Kiavi rental loan borrowers are required to pay between $600 and $2000 appraisal fee during the loan application), a loan processor takes charge.

They initiate an initial review and kick start the process by requesting with relevant title and insurance companies. Once scheduled, the appraiser physically visits the property to inspect its interior and exterior structure and condition. They also take into account any upgrades made to the property.

Comp Research

Following a thorough physical inspection, the appraiser performs a comparative analysis using various resources, including the MLS and listing platforms like Zillow. This analysis aims to determine the property’s potential market value and enables the appraiser to understand trends in home sale prices in the area.

The entire appraisal and comps research process may take 30 days or more. Once completed, the appraiser compiles a report and forwards it to Kiavi’s valuation team for the next and final appraisal phase.

Read Also: Real Estate Comps: How To Find Comparable Properties In 5 Steps

Valuation

During this phase, Kiavi’s valuation analyst reviews the appraisal report to ensure it aligns with the company’s credit policy. They also review the report to determine the loan-to-value ratio (LTV) and, depending on the terms, may employ either a cost-based or sales-comparison method for this step. If conditions are met, the analyst sends the report to Kiavi’s underwriting team.

The underwriting team evaluates the borrower’s complete file to confirm compliance with Kiavi’s guidelines and standards and verify the accuracy of the paperwork. If all is well, Kiavi’s closing team coordinates the closing date, contract signing process, and the official transfer of loan proceeds with the borrower’s title agent.

Pros Of Kiavi Lending

Based on ours, as well as Kiavi lending reviews from users, here are the pros of choosing the company for hard money loans:

• Digital loan processing: Kiavi harnesses the power of technology for its pre-qualification and initial loan application process, speeding up closing.
• Streamlines capital access: Although it mandates appraisals for some loan programs, Kiavi rental loans don’t require income, employment, or asset verification.
• Multiple loan programs: Kiavi lender offers multiple loan types, allowing investors to find options that suit their specific needs. The lender even offers personalized solutions based on one's needs.
• High LTV: Kiavi offers a pretty generous loan-to-value ratio: up to 90% on the purchase price and up to 75% of the repair value
• Flexible repayment options: Kiavi offers interest-only and ARM loan repayment options, allowing investors more flexibility and comfort in repaying their loans.

Cons Of Kiavi Lending

While Kiavi offers some awesome perks, customer reviews indicate it’s not without fault. The disadvantages of Kiavi loans, according to Kiavi lending home reviews, include:

• Although Kiavi does offer flexible repayment options, their fixed interest rates on DSCR rental and rental portfolio loans are about 2 points higher than the average market rate
• According to Kiavi lending home reviews on sites like TrustPilot, Kiavi sometimes fails to meet its end of the bargain after promising to deliver approved loans on the agreed dates.
• Kiavi doesn’t offer loans over $3 million despite being one of the largest lenders in the country.
• New applicants need a minimum of $50,000 to open an account, meaning investors lacking upfront capital cannot leverage the lender’s hard money loans.
• Some of Kiavi funding reviews indicate poor customer support

Kiavi vs. Competitors

Check out how Kiavi performs against the competition:

Kiavi vs. Rocket Mortgage

Like Kiavi Funding, Rocket Mortgage is a digital loan lender. However, while Kiavi specializes in residential real estate investing, Rocket Mortgage caters to the broader public market and offers traditional loan options such as standard mortgages and refinancing loans.

However, Rocket Mortgage’s closing process is slower than Kiavi’s tech-powered loan processing. On the bright side, their interest rates are lower.

Kiavi vs. Lima One Capital

Lima One Capital is a private hard money lender that, like Kiavi, also caters specifically to the real estate market. While some Lima One loan types are similar to Kiavi loans, they offer many loan options, including new construction loans and multi-family financing, allowing investors more opportunities.

Additionally, they have much higher limits, with their offerings ranging between $250,000 and $5 million. Unfortunately, their interest rates are higher, too, between 8% and 10%, with shorter loan repayment periods of about 1 to 2 years.

Kiavi vs. Asset-Based Lending

Asset-based lending is a good option if you’re looking for a fast-closing loan lender. Although Kiavi loans offer fast loan processing, the Asset-Based lending processing process is even quicker. They pre-qualify borrowers within 24 hours and can close in just three days. Kiavi rates start at 6.8%, while ABL offers a 6.5% starting rate.

However, some of their loans have an interest rate as high as 12%. Both platforms are similar; they provide fast loan closing, cater to the real estate market, and charge nearly identical starting interest rates.

Kiavi Vs. Upright

Upright formerly known as Fund That Flip, is a Cleveland, OH-based, fast-growing real estate fintech committed to ensuring fast capital access for REIs. The company offers loan types similar to Kiavi but includes options not provided by the latter, such as new construction loans, which take about ten days to close. Compared to Kiavi rates, Fund That Flip APR rates are much higher, starting at 9.99%.

Additionally, they offer crowdsourcing investment opportunities, where investors can contribute to the company’s loans and profit from the premiums. This is similar to what Kiavi used to do at the beginning. Generally, except for the higher APR rates and investing opportunities, Kiavi and Fund that Flip are identical.

Final Thoughts: Is Kiavi Worth It?

Kiavi offers fantastic loan options uniquely tailored to the real estate industry. The company gets the hassle out of loan access by eliminating asset, income, and employment verification from the appraisal process. In some instances, Kiavi even bypasses a physical appraisal altogether. Moreover, they have a significant funding track record and offer a generous LTV, flexible repayment plans, and extended repayment periods.

Generally, they have a fantastic concept, but it’s crucial to acknowledge that Kiavi funding reviews from customers indicate potential concerns with the company’s customer service. Ultimately, Kiavi is worth it, but investors should be cautious about these potential concerns when engaging with the company.

Looking to step into real estate investing? Contact Real Estate Skills today and let our team of experts guide you on your path to becoming a successful real estate investor. Whether you're a seasoned pro or just starting, we offer personalized strategies and support to help you achieve your goals.

*Disclosure: Real Estate Skills is not responsible for the information provided by Kiavi or on its respective website. Kiavi is an independent company which provides real estate services to investors. Real Estate Skills trains on using Kiavi and the benefits of using the service but is not responsible for the content it provides.