Frequently Asked Questions
On many web pages, you will find FAQ’s that are not really frequently asked. In fact, some of the questions are never asked. Often, these are either the things the website owner thinks are important or they are just filler.
Below, you will find a list of the questions we are most frequently asked and their answers. If you have any other questions, please don’t hesitate to contact us.
Q. Can I get approved?
A. Without getting some information from you, no one can truly tell you if you can get approved but we can usually answer that question within a few minutes on the phone. The answer to this one is not the same for everyone but we can tell you that we have helped many people get loans when others wouldn’t help.
Q. How much will it cost me to get a hard money loan?
A. This is going to depend mostly on the size of your loan. While we can’t actually give you an exact amount here, we can tell you that we are NOT the most expensive. Some private money lenders charge a minimum of 10 points. We would be happy to answer your questions on a specific loan scenario if you call or e-mail us.
Q. How long does it take to get a loan done?
A. Obviously, there are variations but it usually takes about 3 weeks from start to finish. In some instances, it is shorter and in some it is longer. It will depend partially on the complexity of the loan and partially on how quickly others respond to requests (e.g. appraisers, title companies, etc.). If you already have a complete file, we have closed loans in as little as 4 days.
Q. What rates do you charge?
A. The typical private money loan is going to be a significantly higher rate than a loan you would get from a bank. Unfortunately, we can’t give you an exact rate here for legal reasons (or this answer would be much longer) but we would be happy to figure it out for you if you contact us with your specific situation.
Q. Do you do loans that are not secured by real estate?
A. No, we are only licensed to lend on real estate.
Q. What size loans can you do?
A. Generally, most of our loans are between $100,000 and $1,000,000 but we have done loans that are less than $100,000 and more than $1,000,000. There aren’t any specific loan amount restrictions. We do have investors who will consider loans larger than $2 Million and commercial loans can go much higher. It really boils down to whether the loan makes sense for our investors.
Q. Do you do regular bank loans?
A. While we specialize in alternative lending, we have many different loan programs we can help you with. If there is a type of loan that we cannot do, we have other loan professionals we can refer you to.
Q. What is the highest loan-to-value ratio you will do?
A. On a hard money loan, the normal maximum loan-to-value ratio is 65%. This means that if the property is worth $100,000, the maximum loan amount would be $65,000. On other types of loans, it is possible to go higher higher than that.
Q. What is the smallest loan amount you will do?
A. We do not have a minimum loan amount. The smallest loan we have ever done was $12,500.
Q. What is your minimum credit score?
A. We do not have a minimum credit score requirement for hard money loans. However, if there are severe credit problems, a written explanation of what caused it can be required and the maximum loan-to-value ratio may be reduced.
Q. Is the interest rate fixed?
A. On all hard money loans, the interest rate is fixed. On on some other types of loans, the rate can be fixed or adjustable. Most of the ones we do are fixed.
Q. What is a non-prime loan?
A. A non-prime loan is a mortgage for those who fit in between hard money and a regular bank loan. The rates are in-between and so are the requirements for qualifying. Non-prime is the replacement for subprime loans that had unworkable loan terms that set up many people to go into foreclosure. Non-prime loans do not have prepayment penalties on owner occupied properties.
Q. Do you do bridge loans?
A. Yes. We can do bridge loans. A Bridge loan is a mortgage that is used to buy one property before another property is sold. It is usually a short-term loan.
If you have a question that you don’t see the answer to or if you need more information, please fill out the contact form to get your question answered.