Welcome to our comprehensive guide on frequently asked questions about hard money loans. If you're seeking fast and flexible financing options, hard money loans can be a game-changer. Let's delve into the world of hard money loans and unravel the answers to your burning questions.
WHAT IS A HARD MONEY LOAN?
A hard money loan is any loan secured by a "hard" asset like commercial or residential property. It is sometimes called a briddge loan, private capital loan or private loan. A hard money loan is a first mortgage on investment real estate. A hard money lender looks to the property as the primary collateral as opposed to the borrower's credit score or other factors. A hard money loan is an alternative to a traditional loan.
WHAT UPFRONT FEES DO YOU HAVE?
There are no upfront fees prior to issuing a commitment. All we require is a one-page submission as well as rent rolls and pictures.
WHAT IS YOUR TYPICAL CLIENT?
We believe in flexibility, which is why we work closely with you to customize loan terms that align with your investment goals. From loan amounts to repayment schedules, we ensure that the terms suit your specific needs.
WHAT TYPE OF PROPERTIES DO YOU LEND ON?
All investor commercial and residential real estate. We require our loans to be an entity such as a corporation or an LLC.
WHAT IS YOUR MAXIMUM/MINIMUM LOAN AMOUNT?
We lend from $200 thousand to $2.5 million depending on which of our products best fit the borrowers needs, and our assessment of the property.
WHAT IS YOUR MAXIMUM LOAN TO VALUE (LTV)?
Again, this depends on the property type and which product, but generally land only is 50% - 60% LTV and improved property is 70% - 75% depending on our assessment of the property. We base our loan to value on the value we come up with for the property.
WHY USE A HARD MONEY LOAN?
There can be many reasons, but the main reason is time. We can often close in 5-10 days depending on property location. Hard money loans can be used when traditional financing is not an option because of income, credit, liquid cash, etc.
WHERE DO YOU LEND?
We lend in Texas only, and generally in the Metro areas such as D/FW, Houston, Austin and San Antonio.
WHAT TYPES OF PROGRAMS DO YOU OFFER?
Our loans are interest only for 6-12 months (or more by exception) depending on the product you select.
WHAT IS YOUR MINIMUM CREDIT SCORE?
We have a product with no credit score required, and we have a product with a minimum score of 660…we will assess each applicant to see which works best for them.
CAN YOU LEND TO FOREIGN NATIONALS?
Yes, in some instances.