Dutch vs. Non-Dutch Rehab Interest Accrual
Bottom Line Up Front (BLUF): Under Non-Dutch interest (drawn-balance interest), the borrower only pays monthly interest on the acquisition funds and rehab draws actually disbursed to date. Under Dutch interest, interest accrues on the entire committed loan + rehab reserve from Day 1.
Underwriting Formula / Rule
Non-Dutch Monthly Interest = (Disbursed Principal to Date) × Monthly Note Factor.
Wholesale Shelf Benchmark
Loan Daddy LLC prioritizes Non-Dutch (drawn-balance) wholesale RTL shelves for heavy rehab projects.
Frequently Asked Underwriting Questions
When does Non-Dutch interest save the most money?
On heavy value-add and ground-up projects where the rehab holdback exceeds $75,000+ and draws occur over 4–9 months.
Arranged by Loan Daddy LLC (NMLS #2827624 · (480) 485-1229 · quotes@loandaddy.ai). Business-purpose investment properties only.