Our criteria for qualification is less stringent compared to that of banks. We move more quickly and require less documentation. Unlike banks who evaluate you, the borrower, hard money lenders like HMF evaluate the investment property as our primary qualification. HMF uses the after-repaired value to evaluate your loan, something few banks will consider.
No. Our loans are considered commercial loans. We do not lend on a borrower’s current residence/homestead nor commercial properties like rehab, rentals, etc. if inhabited by the borrower.
Yes - hard money loans are short-term, high-interest loans and will only make sense for investors who are planning to refinance or sell their property in 3-12 months. If you are not getting enough value within a short period of time and you qualify for a traditional mortgage, then this will be less expensive and a better option for you than a hard money loan.
Speed. HMF process is simple. Unlike traditional bank loans, we don’t require tax returns, personal financial statements, etc..
Hard money loans are more expensive but quicker to process with few questions and restrictions. HMF can be the perfect solution for investors who are getting an excellent deal that needs to close quickly and also for those who have a number of outstanding loans (those who have reached 4-loan, or 10-loan lender’s limit) by helping you continue to leverage your real-estate investments.
- New real estate investors who cannot show sufficient income flow or cash reserves to be qualified by traditional banks.
- Investors with poor credit
- Investors with undocumented income
- Investors with short work history
- Investors who are experienced and have more than 4 mortgages in their name
- Investors buying properties that need significant repairs
- Buyers who need renovation funding, not just purchase funds
- Investors who don’t have the cash required to close with a conventional loan
- Real estate investors who are highly leveraged elsewhere
- Buyers of properties that won’t appraise as-is for an acceptable value
- Buyers dealing with distressed sales that must close in days, not weeks
- Buyers of rental properties that are problematic (under-rented, in need of repair)
- Property owners with high equity who need quick access to cash for any reason
Yes, most of our loans are made to real estate investment companies.
In most instances you need to have cash to cover closing costs and your part of the equity. However, there are instances where your purchase price is really good where you won't need much or any cash at closing.
Yes. We do charge a small upfront processing fee depending on the amount of your loan, but we don’t get anything unless we fund your deal. You will also need to pay for:
- Survey and inspection if you choose to have one
- Appraisal services for certain loans that may require it
- Small fee for document preparation from our attorney
All origination points at paid at closing and taken out of the loan plus any processing and legal fees to our attorney included in your term sheet. The rest of the costs are typical transaction costs that your title company will assist with such as title insurance, survey, escrow fee, printing, delivery, etc.
Yes. You can use HMF hard money loans to buy, rehab and flip your property.
The rehab/ construction holdback amount is placed in an escrow account where you can make draws upon completion of each stage of the work. It is important to make sure you have some cash on hand to begin the work to cover deposits for your contractor, as draws are paid upon completion of the work.
We will give you a “yes” or “no” on your deal within 24 hours. With a rush fee applied, we have the capacity to fund loans on the same day or the next if necessary.
Typically it takes 5-7 business days from initial contact to funding if your title commitment, survey and seller are ready to go.
No, it is important to keep payments on time to prevent the loan from going into default.
Hard money loans are primarily asset-based, so our main focus is the value of the property. We research and determine the market value of the property and establish what we’re willing to lend, typically about 75% or less of the after-repaired value. We do take other factors into consideration including investor experience, location and rental income.
Our minimum FICO score is 550. However, if you have a good credit score, we can discount your interest rate. We do not verify employment, reserves or DTI.
Yes, our hard money loan programs are ideal for investors who own too many investment properties for a traditional lender to finance them. We do not have a limit on the number of mortgage loans you can have out. If you have the equity and 75% loan to value or less can meet your needs, we can help.
Yes, if you have at least 35% equity in the property and you need quick access to cash our hard money loans could be a perfect solution.