Hard Money Loan FAQ

Traditional banks generally have many more guidelines and lending criteria that make it nearly impossible to get a loan from them for the purpose of buying, rehabbing, and reselling residential properties. Asset based lenders specialize in loans against these types of distressed properties. Asset based loans are usually short term and have somewhat higher interest rates, BUT can close quickly and finance repairs, and closing costs when purchasing within 70% loan to value.

Our loans typically range from six month to eighteen months with built in extensions. You will be required to pay an extension fee at the time of each extension.

Our rates and fees will vary depending on the quality of the deal and your personal financial situation, but the interest rate will range between 10% and 13% and the origination fees will range from 2% to 5%. Each deal will also have the following fees:

*These above is subject to change, but the fees are transparently lined out in the Term Sheet, Serving Letter, Loan Documents, or some combination thereof.

The Processing Fee and the Valuation Fee are due at acceptance of committed terms.  All other fees are payable on the HUD or upon Draw Inspection

We typically suggest not paying more than 75% of ARV minus repairs, If you need help coming up with this figure please fill out the quick app and a representative will be in touch.

Yes. Please fill out the Quick App on our website to submit an inquiry. An associate will typically reach out within two hours of an inquiry during normal working hours.

This will vary depending on the quality of the deal and your personal financial situation, but we will loan up to 75% of the After Repaired Value (ARV) of the property. Take again the example above of a property worth $100,000.00 with $15,000.00 in repairs. We might loan as much as $55,000.00 towards the purchase of the house with an additional $15,000.00 held in escrow for you to repair the property. At this time, we do not have a minimum or maximum loan amount.

Yes, upon proper inspection funds will be released as the value of the asset improves.

Our minimum credit score is 580, however rate and terms can be adjusted based on credit factors.

This is determined on a deal-by-deal basis.  We encourage you to reach out to a representative to discuss your unique scenario.

We will provide an estimate before commitment, but a good rule of thumb is 6 months’ worth of payments plus one-third of the cost of repairs.

We can take accessible credit into consideration for liquidity.

Yes. We have several partners we work with for long term needs.

Yes

Yes