How Does it Work?
Typically, hard money loans are kept by borrowers for three months to a year while they renovate the investment property and prepare it to be resold or rented. Once completed, the investor can refinance the loan with a conventional mortgage and pay off the private loan, and a resale investor pays off the loan with the sale of the property to a buyer.
Which Loan Fits Your Needs?
Before opting into a loan agreement, it’s important to identify exactly which loan is right for your unique investment situation. Use this list of loan guidelines as a resource to help you make the best choice:
|Loan Amount||$50,000 to $4,000,000|
|Property Types||SFR, 1-4 units, Condos|
|Loan Terms||12 or 24 Month Term|
|Lien Position||First position only|
|LTV||Max 75% of the After Repaired Value (Max on cash out 70% LTV)|
|LTC||Max 85% (Purchase), Up to 100% (Rehab)|
|Rates||Starting at 8.5%|
|Origination||Starting at 2%+ (minimum $3,000)|
|Occupancy||Non-owner occupied only|
|Borrower Experience||We Lend to First Timers|
|Prepayment Penalty||No prepayment penalty|
|Foreign National||Max 60% LTV, Max 60% on Cash Out|
*Renovation Money is escrowed for every loan to ensure success for all parties involved. **LTV and Minimum down are determined by borrower credit and experience.*** Loan amount will be the lessor of the LTV and LTC****Starting rate varies based on property location