A hard money loan is considered cash by most Sellers, making these loans perfect for real estate investors looking to purchase properties quickly to beat competition.
Intrust Funding requires a credit report to prequalify borrowers; however, we also accept copies of credit reports issued within the last 12 months.
Because unforeseen circumstances or issues sometimes alter project scopes, hard money lenders usually allow borrowers to refinance loans at any time. The terms of the new loan, however, may vary depending on the project.
Hard money lenders do run credit checks. Intrust Funding, however, requires no minimum FICO score, and the loan approval itself is not contingent on any credit score minimums. We also accept copies of credit reports issues within the last 12 months.
Although hard money lenders differ on underwriting principles and loan requirements, Intrust Funding requires a credit report, proof of funds, Purchase & Sale Agreement (if property is under contract), a Scope of Work, and in special cases other documents. Once we have these basic qualification documents, we can fund your project within 48 hours of approval!
Hard money lenders typically do not take a borrower's credit history into consideration during the underwriting process. What is most important is the after repair value (ARV) of the investment property itself.
Because hard money loans are secured by the after repair value of the investment property it's for, if a borrower declares default on a loan typically the hard money lender will take control of the property and sell it to recoup the expenses of the loan.
Just about every hard money lender requires a down payment. These can range anywhere from 20% to 30%. The main reason is because the loans depend on the success of inherently risky projects.
Hard money loans are a great option for real estate investors who need to close on a property quickly, fund a renovation project, or both! Basic Facts: Short-terms Depend on the after repair value of a property rather than a borrower's credit score Fund projects from $50,000 to more than $10 million Fund deals within 48 hours of a completed application
Typically interest rates for hard money loans begin around 12%. Other costs include administration fees and down payment. Most hard money loans will fund projects as low as $50,000 up to and beyond $10 million.