Hard Money Loans
RESIDENTIAL & COMMERCIAL
SAME DAY LOI
NO UPFRONT DUE DILIGENCE FEES
A "Hard Money Loan" is a short-term loan (with a term of generally 6 months - 3 years), where the lender is a private investor or group of private investors (private lenders) who are loaning out their own money directly to the borrower or through a Broker.
Traditional lenders, such as banks, do not make hard money loans.
Hard money loans may be used to purchase or refinance residential property.
Hard money loans are usually backed by only the value of the property, not by the credit worthiness of the borrower. The lender may want to see a credit report but having a low FICO is not a reason for a loan turndown. It may mean if you'll have to pay a slightly higher rate but again, the loan will be based on the property itself.
Since the property is used as the only protection against default by the borrower, hard money loans have lower loan-to-value (LTV) ratios than traditional loans. The lender will generally want 20% - 40% down. They may do a fix & flip combo loan with only 10% down case by case.
Hard money loans carry higher interest rates than traditional bank loans but if you have income and credit issues, they are easier to get.
Hard money loans also close much quicker than bank loans. They can close in as little as 7 business days.
These loans are used primarily in turnaround situations by investors who need short-term financing for fix and flip properties.
GENERAL TERMS OF OUR HARD MONEY LOANS
(currently applies to residential properties located in Southern California)
1st TD loans
Loan amounts: $25K - $10M
Residential up to 75% LTV
Fix & Flip loans up to 65% ARV or 80% of purchase price ($500K purchase price or less)
Terms: 6 Mos - 5 yrs
Rates: 6.9% to 10.9%
Points: 3-4 Points
Interest Only - Fixed Rate
Closing in 5-10 business days
WE PROVIDE EASY QUALIFICATION:
- NO TAX RETURNS
- NO VERIFICATION OF EMPLOYMENT
- FORECLOSURE, BANKRUPTCY, BAD CREDIT OK
- WE BASE THE LOAN ON THE PROPERTY, NOT ON YOU
If you are inquiring about a loan, fill out the quick form "Contact Us About A Loan" and we'll get back to you shortly.