A Hard Money Loan is a form of financing available to purchase and repair an investment property. These loans do not conform to conventional underwriting standards and are not usually offered by banks and mortgage brokers. One unique attribute of hard money is that financing is made available more quickly. We routinely close loans in 7-10 business days. Another attribute of hard money is that financing is made available to people with less than stellar credit because there is more equity required to lend.
Most Real Estate Investors prefer hard money financing for many reasons. One is due to quick closings. Many times in order to have an accepted offer on a undervalued property, quick closings are required. Another reason is that real estate investors typicall make a higher return on investment when the repairs for the home can be financed as opposed to using their cash.
Single Family Residential and Multifamily
600 minimum credit score, two month bank statements to show downpayment and 6 months of interest reserves
California, Arizona, Washington, Colorado, and Florida
Yes if the LTV is 55% or above
7-10 business days from the time the initial loan package is submitted
Taking the lower of the appraised value or purchase price. In most cases our max LTV percentage is 75% of the appraised value or purchase price (whichever is lower)
Yes, the borrower will be in the same name as the title entity
We will charge an origination fee plus a $1,650 underwriting and $650 loan document
The advantage of using a hard money loan is the speed of the loan closing, the limited documents required for underwriting and the lower credit score minimum.
The draws are dispersed based on completed work. Once a certain phase is completed, a request for a draw is submitted and the inspection and money disbursement will take place 1-2 business days after that.