Hard Money Loan Lender – Start Rate of 5.99%
Hard money loans or Private Capital Mortgages are a particular kind of asset-based loan funding with which a customer gets funds secured by the value of real estate rather than based on income and credit. It offers the borrower an alternative to the common mortgage programs or conventional lenders. The most common use of these loans are with fix & flips and short term financing needs. The hard money loans that we offer are raised through small personal investors, hedge funds, and other private institutions.
Our hard money loans are not based on the borrowers credit worthiness but, rather, on the asset/property. Because of the risk taken by the loan providers, interest rates are usually higher than the average home loans. Our products have shorter terms and are normally for 6 months to 5 years, with interest only options and are not meant to be a long term financing solution.
Custom Mortgage Hard Money Loan Programs Include the following main program:
Residential Hard Money Loans:
- 1-4 Unit Residential Properties including Condos, townhouses, apartment homes, and other unique properties.
- Minimum Loan Amount: $100,000.00
- Maximum Loan Amount: $100,000,000.00
- Minimum Property Value: 135,000.00
- Maximum LTV: 80%
- Loan Terms: 6 months to 30 Year Fixed
- Occupancy: Owner and Non Owner Occupancy
- Interest Rate from 5.99% – 15.99%
- Prepayment Penalty Options: None, 6 months, 1 year, 3 years, and 5 years
- Title: Individual or non living entities (Corp, LLC, Trusts, etc)
- Cross collateral transactions are allowed
- Blanket Loan options
- Rural properties are allowed
Small Balance Commercial Loan Program
- Loans from $250,000 to $5,000,000
- No upfront fees are required
- Rates Starting from 6%
- LTVs to 80%
- Same day term sheets issued
- No tax return programs for investors and business owners
- Property types:
- office, retail
- warehouse, industrial
- mobile home parks
- self storage
- and more
Fix and Flip / Fix and Hold
- Property Types: Residential and Commercial
- LTV up to 90% on Purchase and Rehab Funds
- Rates starting from 6.99%
- Loan Amount from 100k – 5 million
- No upfront fees are required
- Loans up to 48 months
Why Hard Money?
Firstly, hard money is much faster than common loans because the focus is set on collateral. This means less time needs to be spent of reviewing the loan recipients. Hard money also is more adjustable because lenders review each deal individually. Credit rating, earning, and other traditional loaning standard could be reviewed. The loan to value for private equity loans are often between 65% – 80% of the property value.
Hard money loans are loans that are given by private entities i.e., they are not offered by banks, credit unions, societies and other conventional lenders. What makes the hard loans unique is that the lender does not need to know your financial situation (whether you can be able to repay the loan). All you need is a good property that you can place as collateral. Usually, the lender will offer 40% to 70% of the value of the property offered as collateral. Since no financial report is required to access these loans, the loans are ideal for people with a bad credit history but have property to offer as collateral.
How Conventional and Hard Money Loans Differ
The main difference between the two is that the traditional loans are given by credit unions, banks and other institutions, while the hard loans are given by lenders who are privately funded.
Another difference is that conventional loan lenders require more documents from you in order to offer you the loan. For example, a bank will need to proof that you are capable of repaying the loan (for example the bank may require you to provide your pay slip and other supporting documents).
On the other hand, the hard money loan lenders don’t require you to provide proof that you are capable of repaying the loan; all you need is to place a good property as collateral and the lender will give you a loan that is up to 70% the value of your collateral.
Conventional loans take long to close (can take up to months); hard money loans are usually quicker to close.
Finally, the interest rates charged for the hard loans are usually higher than those charged for the conventional loans. The reason why the interests charged are higher is because the hard loan is usually more risky than the conventional loan.
Who Qualifies For The Hard Money Loans?
These loans are ideal for the people who are credit impaired. This is because, as long as you have good collateral, the hard loan lenders will offer you a loan even if you are bankrupt.
These loans are ideal for those who want funds quickly—this is because the loans close quickly.
The loans are also ideal for the foreign nationals who will not be given loans in other institutions since they are non-citizens of a given country.
Advantages of Hard Money Loans
Hard money loans have several advantages:
Rates starting at 7.99%
One great advantage is that the loans are easier to access; therefore, if you don’t meet the qualifications of the conventional lender, you can easily access the loan without undergoing rigorous paperwork.
Another advantage is that the loan has many collateral options. For example, you can use your home or the future cash flows of the property as collateral. This enables you to access a loan regardless of the property that you have.
Immediate Decision. Same Day Approvals
Funding in 72 Hours once we have a complete loan file
Loans Focused On Your Equity, Not Your Credit
Flexible Terms To Fit Your Needs
Less Paperwork than conventional Loans
Decision based on value of your asset, not your credit
No Income Check loan programs available
Low FICO and Credit Problems OK
Foreclosure, Bankruptcy OK
Hard Money Financing
If you have a bad credit history but you have a good property to offer as collateral, then you should consider taking hard money loans. You no longer have to wallow in self pity because you have a not-so-good credit history.