TRUE HARD MONEY LOAN GUIDELINES

TRUE HARD MONEY LOAN

FBC FUNDING offers multiple True Hard Money Loans. Each Loan has different guidelines and here are three of the programs and guidelines.

What is a True Hard Money Loan

A True Hard Money Loan is a business purpose asset based loan.  A True Hard Money Loan is based a few factors.  The first factor is the as is value of the real estate being used as collateral. The second factor based on importance, is the current cash flow of the collateral. This is followed by the credit profile and the potential future value and future cash flow of the collateral. The True Hard Money Loan places most or all emphasis on the current value and current cash flow, with little emphasis on future value, future cash flow and  borrower credit profile. Because these are riskier loans the loan to values are lower and the costs are higher. Here are guidelines for three of our True Hard Money Loan Programs.

True Hard Money Loan 1 – Business Purpose Loan

• Repayment:
  • Interest Only – for 36 months
  • Amortizing – over 36 months
  • Hybrid – interest only for 6 months the amortized over 48 moths but due in 36 (will have a 55% of principal balance due)
• Loan Term: Up to 36  months
• Pre-Payment: 12 months of interest payments
• Minimum Loan: $200,000
• Maximum Loan: $2,000,000
• Payment Frequency: Weekly (similar to MCA)
• Minimum Credit Score: 475
• Minimum Time in Business: 1 year
• Rate: Up to 36%
• Max LTV First Mortgage:
  • Residential 65% to 75%
  • Commercial 65% to 75%
  • Industrial 60% to 70%
  • Land 25% – 50%
• Max CLTV Second Mortgage:
  • Residential 60% to 70%
  • Commercial  60% to 70%
  • Industrial 50% to 60%
• Advantages:
  • All property types considered
  • Higher LTVs less closing costs equal more cash in pocket
  • Second mortgages considered
  • quick close
  • Owner Occupied property considered if used for business
• Disadvantages:
  • Higher interest rate factor and payment
  • Weekly Payments
• Docs Needed:
  • Schedule of REO
  • Last 3 Bank Statements
  • Application

True Hard Money Loan 2 – Residential and Commercial Property Loan

• Purchase or Refinance
• Loan Term: 12 to 24 Months
• Seller Carry to 100% CLTV – OK
• 50-55% LTV for Commercial Properties
• 60% LTV for Residential Properties
• Any Credit Score Qualifies
• We Require the Property to be in a Population of 35k+
• Minimum Loan $200,000
• $15 Million on Good, Clean Properties
• $3 Million Maximum on all Others
• Rates 14% and up
• Points 5% and up
• Advantages:
  • Residential and Commercial
  • Purchase and Refinance
  • 100% CLTV
  • Larger Loan Amounts
  • Lower Rates
• Disadvantages:
  • Lower LTVs
  • Higher Fees which reduce cash in hand
• Docs needed:
  • Application
  • Schedule of REO

True Hard Money Loan 3 – Residential Loan

• Loan Term: 12 to 240 months
• 75% LTV for Residential Properties
• UP to 65% ARV
• Any Credit Score Qualifies
• Minimum Loan $50,000
• $1 Million Maximum on all Others
• BPO only
• Rates 14% and up
• Points 5% and up
• Advantages:
  • Residential, Commercial, Mobile Homes and Land
  • Purchase and Refinance
  • Smaller Loan Amounts
  • Quick Close
• Disadvantages:
  • Lower LTVs
  • Higher Fees which reduce cash in hand or out of pocket
• Docs needed:
  • Application
  • Schedule of REO

For More information about a true hard money loan and how it can be used in your financing goals

call 888-848-3114

or click here to schedule a free loan consultation.