Hard Money Frequently Asked Questions
What is a Hard Money loan?
Hard Money loans are loans funded by private individuals instead of a bank. The qualifications required to get a Hard Money loan are much simpler and depend more on your ability to repay the loan, than your credit history. They are basically considered all cash, are extra strong and can be used to purchase or refinance fixer properties, bad credit borrowers, irregular income borrowers, large cash-out borrower, someone needing fast cash, short term Bridge loans, etc.
What states do you lend in?
We provide Hard Money loans in the state of California only.
Do you require any upfront fees before qualifying for a Hard Money loan?
Absolutely not! We do not require any fees upfront during the qualification process. Applying for a loan is free and requires no obligation. You should never have to pay upfront fees to a Lender or Bank.
What are the rates for a hard money loan?
Hard money rates in general average 10-13%. Depending on loan to value and location rates can be lower, and we have funded many such loans with lower rates.
How long does it take to close a loan?
We can fund fast! Our quickest funding was done in less than 3 days. Each loan is a different scenario but the average funding is 2-3 weeks.
Is a bad credit score an issue?
Your credit score is not a primary factor with hard money. We are foremost interested in the real estate value and equity as well as your ability to repay the loan. We will pull your credit to ascertain the risk for the Investor but that’s about it. We have funded loans for individuals with little to no credit.
Is having a foreclosure or short sale on my record going to be an issue?
No, a foreclosure or short sale on your record will not affect your ability to qualify for a hard money loan with us.
What is the cost for a hard money loan?
Hard money fees vary Broker to Broker. We have set doc and prep fees which are nominal. Then depending on loan size and scenario, we charge some points against the loan size which is how we get paid for our work. Again, these can vary but ours tend to be lower than many other Hard Money Brokers or Lenders. When calling or emailing us, feel free to give us your scenario and we will let you know the cost of your loan.
Is Hard Money considered predatory type lending and are you a loan shark?
No! We’ve helped so many home buyers buy their first home, rescued hundreds of real estate agents who had buyers unable to get a loan elsewhere, and we only work with California Bureau of RE qualified, professional investors. Hard Money loans are heavily regulated and require strict adherence with the law. We are a family owned hard money business operating since 1988, honesty and integrity is our top priority.
Are Private Investors / Hard Money Lenders just interested in foreclosing to get property?
No! This is a common misconception. Private investors and Hard Money lenders are simply trying to provide an alternative financing service. They of course hope to receive a good return on their investment and they protect themselves by investing against equity in your property to secure that return.
Sun Pacific Mortgage & Real Estate works directly with your situation to ensure you are qualified for such a loan in the first place. We pride ourselves on setting up borrowers with good loans they can afford.
Do I need to provide all my information regarding assets, income, etc.?
Hard money qualifications are considerably less stringent than banks or other traditional lenders so much less excessive documentation is required. With the two main qualifications being #1. A decent down payment on a purchase or good equity in existing property and #2. An ability to repay the loan, the documentation required are those items which prove these points. When you get preapproved for a loan from us, you will receive a concise list of items needed for us to complete a full loan package and get your loan sold. It’s relatively simple!
How can I get prequalified for a Hard Money loan with Sun Pacific Mortgage & Real Estate?
Call (707) 523-2099 to receive a free consultation with no obligation to you. Our friendly staff will be happy to assist in answering any questions you may have.
Do only desperate/last resort individuals apply for Hard Money loans?
No! Hard Money is very beneficial when the circumstances call for it: It is a fast and secure loan option to help close a deal; It provides a strong “all-cash” offer when purchasing; It can be used as a temporary or bridge loan; Provides financing for those with difficult to prove income or poor credit; Financing properties that need fixing, such as flips; It is great for refinancing if one can’t get a loan elsewhere to pay of another hard money loan come due or to pull out extra cash for property upgrades, to pay for kids’ colleges, etc.
Can you provide Owner Occupied financing?
Yes we can! While the regulations to do so have become more strict over the years, we still work with many borrowers who need owner occupied financing. We pride ourselves on adhering to all lending regulations, to protect the borrower and investor alike.
Don’t hesitate to CALL NOW (707) 523-2099 for a free proposal, have any questions answered, or to start your loan process.
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We provide ONLY California Real Estate financing. Minimum loan amount starts at $150,000.