Find Hard Money Loans in Atlanta, GA

Find Hard Money Loans in Atlanta, GA

Loan Amounts
  • $50,000 to $500,000
Advance rate/Loan Amount
  • Maximum 80% of TCOP (Total Cost of Project includes Purchase Price, Rehab Budget and closing cost) or up to 70% of ARV (Lower of the two)
  • ARV includes purchase and repairs
  • Subject to appraisal, only if necessary
Term
  • 6-12  months; subject to extension in certain instances based on borrower’s demonstrated ability to perform to date
Interest rate
  • Range of 6.9% to 11.9% per annum once underwritten (lower interest rates supported by the extent of demonstrated repeat business)
  • Payable on the full amount of drawings put into escrow prior to initial draw
  • Based primarily on loan-to-value, loan-to-cost, and the borrower’s experience investing in real estate
  • Calculated based on a 360-day year consisting of twelve 30-day months
Property types
  • SFRs, 2-4 units, condos, town homes, PUDs. In addition, loans on commercial real estate are considered
Monthly payment
  • Cash interest only
Prepayment
  • No penalty
Fees Due upon loan approval from borrower

  • $100 application fees once pre-qualified credited to other fees
  • $499 appraisal fee (only in the event an appraisal is necessary)
  • Lender documentation fee of $450 paid by borrower
  • Zero processing fee
  • Title services fee and lender’s title insurance
Credit score and Financials
  • Soft credit pulled on an exception basis, hard credit is not pulled.
  • Financials only if needed to be sought by the lender after initial review
Security
  • First lien mortgage on the property only – no loans  liens permitted to be placed against the property
  • Personal guarantee
Insurance
  • Required through one of the lender-prescribed insurance carriers or a demonstrated reputable carrier; 6 months of prepaid premiums required at 80% of ARV
Qualifications
  • Down payment in liquid accounts
  • 20% of rehab and 6 months PITI for subject property in reserve accounts. i.e., IRA, 401k, Stocks/Bonds
Points
  • 2.0-3.0% paid at time of loan closing
  • Same points as per above if loan is extended past 6 months at the agreement of the lender and assuming no default (namely an additional 2.0-3.0% upfront as if a new loan origination)
Closing/Funding
  • Funding at closing –Targeted as little as 10 days assuming no titles issues (and post appraisal, only if appraisal is required which is sought on an exception basis only)
Draws on escrowed funds for drawings
  • Borrowers applying for a loan that includes escrow funds must submit a detailed construction scope of work with their loan application, and must provide certain supporting information and evidence before receiving disbursement of any escrow funds
  • No cost to draw–released from escrow for reimbursement upon demonstrated completion of stage of repairs/rehab milestone and contractor/supplier/vendor confirmation of no liens (materialmen lien waivers)
  • Staged releases-no more than 1/3 of total rehab fundings  in escrow anticipated to be drawn at any point

The Online Questionnaire