Private Money Loan Programs for
Real Estate Purchases and Refinances
(California Lending Only)
And if you are, or know a borrower with a profile just short of “A” quality, check out our Alt-A Loans
View our Programs Rate Sheet by Clicking Here.
Ever since lending institutions tightened their loan requirements, frustrated Brokers, Realtors and their Buyers and Investors have been seeking a viable and reliable source for real property buying and investing. Getting approved with a traditional or conventional lender not only requires extensive evidence of credit standing, income verification, good debt-to-income ratio and a lot of paperwork, it can also be painfully slow, even with great credit scores and solid income. This is where we come in with our private money loan programs, also known as hard money.
Our underwriting is based on 2 simple principles:
- Loan to value. We loan up to 65% – 75% of the property value – case by case basis
- Ability to repay. We are far more flexible than conventional underwriting.
What exactly is a Private Money Loan or Hard Money Loan?
A private money loan (also known as hard money) is simply a short-term loan secured by real property and funded by a private investor(s). The terms are generally 12 months but they can be extended. Monthly payments are usually interest only with a balloon payment at the end of the term. The intent is that within the term of the loan, the Borrower corrects the issues that prohibited them from obtaining a conventional loan. If that goal is not achieved, the private money loan may be extended or refinanced into another such loan.
Because private money lenders are primarily concerned with the property’s value rather than the borrower’s credit, FICO scores do not present a problem. Borrowers with damaged credit, even foreclosures and bankruptcies, can still qualify for a private money loan if there is decent equity in the property or they have a good down payment for a purchase.
Call (707) 523-2099 for a free quote, to start your loan process, or below you can email us your questions today!
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