Reasons To Fund Your Investment Property with New Silver
Frequently Asked Questions
Do you offer short term loans and long term loans?
Yes. New Silver is a private lender that offers short term loans for house flipping projects, but we also have 30 year loan product for investment properties. We also cater to real estate entrepreneurs hoping to build multi-family apartments with our new construction loans.
Is New Silver A Private Money Lender?
Yes, we are a non-bank direct lender that provides asset based loans at scale. With asset-based lending, the underwriting process can be more lenient than conventional financing. This is because the underlying value of the asset (real estate property) is more important than the financial background of the investor when setting the terms of the loan. As a result, the requirements for credit scores are less stringent, income verification is not needed and the debt to income ratio of the borrower doesn’t matter. Plus, we can get you approved and closed within 7 days.
Do you offer new construction loans?
Yes. New Silver offers ground-up construction loans for real estate developers that build single family (1-4 unit) residential properties.
Does New Silver offer bridge loans?
Yes! We offer bridge loans, fix and flip loans and refinance loans for real estate investors, from 12 to 24 months in duration. More information can be found on the loan products pages.
Why do hard money loans have higher interest rates than traditional mortgages?
The main reason fix and flip loans have higher interest rates is because of the risks involved in the financial transaction. Unlike a residential home purchase, a fix and flip project could run over budget, the real estate market might take a turn for the worse, making the property difficult to sell quickly. In other words, you could potentially lose money with a fix and flip. This risk is applicable to the borrower and the lender. The higher interest rate compensates for this risk.
How do you calculate the origination fee and monthly payments?
The origination fee (loan points) is usually between 2-3%, but this varies with each deal. To work out the expected monthly payments, it is best to use our hard money loan calculator.
Does Credit Score Matter?
In short, yes. While our credit requirements are not as stringent as a traditional lender, we do review the credit history of all our borrowers. If you’re worried about bad credit, it is best to look at our loan products page, to see if New Silver is a good fit for your needs.
What Are The Main Loans That You Offer?
- Flip Loan – Designed for house flippers
- Rental Property Loan – 30 year loan for investment properties
- Construction Loan – For new residential building projects
- Refinance Loan – Short term loan for cashing out the equity in your home
