|
|
RUSHMYFILE, INC. BORROWER FAQ
What Is Private Money? Private Money otherwise known as Hard money is defined by Wikipedia as “a specific type of asset-based loanfinancing through which a borrower receives funds secured by the value of a parcel of real estate.” This type of loan is typically used primarily for one of two purpose. The first reason is to access financing quick as conventional financing is reached through a lengthy, stringent process. For example if a borrower wants to take advantage of a discounted real estate deal and cannot wait for the detailed and untimely underwriting process of conventional lenders they will secure private money. Another common reason Private Money loans are commonly used is to access financing for loans that would that typical conventional financing cannot fulfill usually based on the borrower's qualifications or lending needs. This type of financing is applicable to all kinds of real estate assets such as residential, multi-family, commercial and even construction. Here are some other typical uses for hard money:
§ Land Acquisition & Development
§ Building Acquisition & Rehab
§ Investment Properties
§ Emergency Cash-Out
§ Quick Propety "Take-downs"
§ Low Loan-To-Value Loans
§ Non-bankable Transactions
§ Short-term "Flip" Properties
§ Foreclosure or Bankruptcy Bailouts
§ Self-employed or Cash-strapped Borrowers
§ Any Short-Term Financing Related to Real Estate
§ Low FICO Score
How Does a Private Money Loan differ from a Conventional Loan? More common than not, the interest rates and points charged for the loan are higher than conventional financing. The primary reason is that the loan decision is based primarily on the asset and its equity value rather than the borrower. Therefore there is inherent risk associated with the loan given to the borrower.
How do I get a hard money loan? Unlike a conventional bank loan, you will only need to provide basic information about you and more important than that, the property. We will evaluate the current and fixed-up value of the property, verify clean title and that we will hold a first lien position, and make sure you have the ability to rehab, sell, or refinance the property within the term of the loan. The process is much more streamlined than with traditional lenders, thus allowing you to obtain money faster.
What are the lender fees? There are no “set” fee schedules. However, hard money loans generally cost 4-10 points. One point equals 1% of the loan amount. Any required fees will be disclosed to you up-front.
1. When you need money "long term." Most hard money deals are for no more than 5 years;
2. When the deal is "tight." Don't look for hard money loans higher than 65-70% UNLESS properties can be cross-collaterized to offset the higher LTV. Conservative loan-to-value ratios is key for investors who are giving their cash to invest in these loans.
I am days away from foreclosure. Can you help? Can I get a loan? Maybe. Hard money loans can close quickly, so depending on how soon your upcoming foreclosure is, we may be able to close a loan beforehand. If not, there still may be many options available to you to stop the foreclosure proceeding. If you contact us, we will try to help you find a solution. And remember to always review all your options with a real estate attorney or consultant experienced in these matters.
What are the loan terms? Every loan scenario is unique and we review it that way. Thus we cannot provide exact numbers and loan structure until we have reviewed your file. However, as a rule of thumb, interest rates are usually from 9.5-11.99% and points are from 4 to10 points. All loan terms are disclosed up front and well before the target funding date. For more information on Loan Terms, click here.
Can I get cash-out to pay tax liens, judgments or other debt? Judgments and liens that appear on your title must be paid off at closing but, after payment of these items, you may use any additional equity in your property to get cash at closing up to the "loan-to-value" limits. For instance, if you have a property valued at $100,000.00, and owe $30,000.00 in tax liens, and we approve a loan for 60% of the value of your property, then you will be able to take an additional $30,000.00 at closing for your own use, less any applicable closing costs and lender fees.
If you have any other questions, please feel free to contact us at (888) 314-6337 and we would be more than happy to help.
RUSHMYFILE, INC. BORROWER FAQ
What Is Private Money? Private Money otherwise known as Hard money is defined by Wikipedia as “a specific type of asset-based loanfinancing through which a borrower receives funds secured by the value of a parcel of real estate.” This type of loan is typically used primarily for one of two purpose. The first reason is to access financing quick as conventional financing is reached through a lengthy, stringent process. For example if a borrower wants to take advantage of a discounted real estate deal and cannot wait for the detailed and untimely underwriting process of conventional lenders they will secure private money. Another common reason Private Money loans are commonly used is to access financing for loans that would that typical conventional financing cannot fulfill usually based on the borrower's qualifications or lending needs. This type of financing is applicable to all kinds of real estate assets such as residential, multi-family, commercial and even construction. Here are some other typical uses for hard money:
§ Land Acquisition & Development
§ Building Acquisition & Rehab
§ Investment Properties
§ Emergency Cash-Out
§ Quick Propety "Take-downs"
§ Low Loan-To-Value Loans
§ Non-bankable Transactions
§ Short-term "Flip" Properties
§ Foreclosure or Bankruptcy Bailouts
§ Self-employed or Cash-strapped Borrowers
§ Any Short-Term Financing Related to Real Estate
§ Low FICO Score
How Does a Private Money Loan differ from a Conventional Loan? More common than not, the interest rates and points charged for the loan are higher than conventional financing. The primary reason is that the loan decision is based primarily on the asset and its equity value rather than the borrower. Therefore there is inherent risk associated with the loan given to the borrower.
How do I get a hard money loan? Unlike a conventional bank loan, you will only need to provide basic information about you and more important than that, the property. We will evaluate the current and fixed-up value of the property, verify clean title and that we will hold a first lien position, and make sure you have the ability to rehab, sell, or refinance the property within the term of the loan. The process is much more streamlined than with traditional lenders, thus allowing you to obtain money faster.
What are the lender fees? There are no “set” fee schedules. However, hard money loans generally cost 4-10 points. One point equals 1% of the loan amount. Any required fees will be disclosed to you up-front.
1. When you need money "long term." Most hard money deals are for no more than 5 years;
2. When the deal is "tight." Don't look for hard money loans higher than 65-70% UNLESS properties can be cross-collaterized to offset the higher LTV. Conservative loan-to-value ratios is key for investors who are giving their cash to invest in these loans.
I am days away from foreclosure. Can you help? Can I get a loan? Maybe. Hard money loans can close quickly, so depending on how soon your upcoming foreclosure is, we may be able to close a loan beforehand. If not, there still may be many options available to you to stop the foreclosure proceeding. If you contact us, we will try to help you find a solution. And remember to always review all your options with a real estate attorney or consultant experienced in these matters.
What are the loan terms? Every loan scenario is unique and we review it that way. Thus we cannot provide exact numbers and loan structure until we have reviewed your file. However, as a rule of thumb, interest rates are usually from 9.5-11.99% and points are from 4 to10 points. All loan terms are disclosed up front and well before the target funding date. For more information on Loan Terms, click here.
Can I get cash-out to pay tax liens, judgments or other debt? Judgments and liens that appear on your title must be paid off at closing but, after payment of these items, you may use any additional equity in your property to get cash at closing up to the "loan-to-value" limits. For instance, if you have a property valued at $100,000.00, and owe $30,000.00 in tax liens, and we approve a loan for 60% of the value of your property, then you will be able to take an additional $30,000.00 at closing for your own use, less any applicable closing costs and lender fees.
If you have any other questions, please feel free to contact us at (888) 314-6337 and we would be more than happy to help.
|
|