Frequently Asked Questions
When are hard money loans used?
Hard money loans are typically used for non-owner occupied residential properties, as well as commercial properties. They are typically used for short term financing between 6-24 months.
What type of loan can I do through hard money?
You can use hard money for purchases, rehab projects, as well as rate and term refinances and cash out refinances.
How much can I borrow?
We make loans between $75,000 - $2,000,000. Exceptions to the size will always be considered.
How long does it take to close my loan?
We can close our loans in as little as 7-10 days.
Do I need an appraisal to obtain my loan?
Yes, we will obtain an appraisal (or other valuation). The borrower is required to pay for the appraisal.
Is a minimum credit score required?
There isn't a minimum credit score, however, credit is considered on a case-by-basis depending on the other factors of the loan.
Can I roll closing costs into the loan amount?
Yes, you can you roll your closing costs into your loan.
Will I need to bring money to the closing table?
We require that borrowers have some skin in the game and cash reserves. Borrowers’ typically have to bring 15-25% of the deal cost to the table. In addition, it will be important for borrowers to have enough money to pay interest and any additional increases in their rehab budget if applicable.
Do I have to own the property for a certain period of time before I can refinance using current value?
No, we do not have seasoning requirements.
How do construction draws work for rehab projects?
Renovation funds are typically paid out in 3 installments throughout the term of the loan. Draws are made upon completion of work. Exceptions may be made on a case by case basis to have the 1st draw paid at the closing table.
Are there prepayment penalties?
There is typically an interest recapture period of 1/2 of the term of the loan.
Can I cross collateralize my loan to meet LTV requirements?
Yes. If you own other properties that are free and clear or currently only have a 1st lien that is 50% or less of the current value, you may be able to cross collateralize this other property to help meet the LTV requirements for your loan.
What do I need to get started?
You should contact us after you complete our loan application to get your pre-approval process started. We are ready to fund your loan.
What are the loan terms?
Every hard money loan is different, so the rate and points will vary. Generally, you can usually expect an interest rate between 9-14% and 2-5 points.
Do you work with Brokers?
Yes, we are a principal lender and work with borrowers and brokers directly.