HARD MONEY LOANS
- First Funding loans up to 70% of current appraised value. The loan can include purchase price and improvements.
- Loans terms vary from 6 months to 18 months with interest payable monthly.
- Financing of improvements will cover pay out installments without additional fees. If some improvements are not covered by the loan, then Borrower’s portion must be done first before loan funds are used.
- Borrower must have out of pocket cash in the range of 5% to 10% in the transaction depending on experience and favorable history with lender.
- Interest rate from 12% to 17% depending on perceived risk, experience, and history with lender.
- All Borrowers must submit loan application and allow lender to receive credit report
- Due to the state and federal regulations on owner occupied loans, lender shall make business only loans and not owner-occupied loans.
- “Hard Money” loans shall be a “gap” financing or “interim” financing to enable the Borrower to obtain permanent financing for “rentals” or resale.
- Be aware that loan regulations may differ by state and may cause acceptance, terms, financing to be different than was is offered by another State.