Reasons To Fund Your Investment Property with New Silver
It doesn’t matter if you are a buy and hold investor or a house flipping specialist. New Silver is a hard money lender with a selection of real estate loans perfectly matched to meet your real estate investing needs. Unlike a conventional mortgage which can take ages to complete, our hard money loans can be approved online in less than 10 minutes, with an instant proof of funds letter to help you secure the purchase. As one of leading private money Hawaii lenders, we are ready to help you solve your real estate investment needs.
Frequently Asked Questions
Yes, we are a direct lender that provides various asset-based loan options. With asset-based lending, the underwriting process can be more lenient than conventional lenders, which can be very useful for a private investor. This is because the underlying value of the asset is more important than the financial background of the investor when setting the terms of the real estate loan. As a result, the financing and credit score requirements 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.
Yes. We offer ground-up construction loans for real estate developers that build single family (1-4 unit) residential properties.
The main reason fix and flip loans have higher interest rates than a conventional lender is because of the risks involved in the transaction. Unlike a traditional loan for aresidential home purchase, a fix and flip project could run over budget or the real estate market could 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, which traditional mortgage lenders don’t face.
The origination fee (loan points) is usually between 2-3%, but this varies with the amount borrowed, the loan term and the credit history of the borrower. To work out the expected monthly payments, it is best to use our hard money loan calculator.
On this point, it is also worth noting that unlike a conventional loan, the monthly payment of each New Silver hard money loan program works on interest only payments. This helps reduce the cash flow burdens of the investor while the project is underway. In essence, you are issued with a cash advance by New Silver, which is then paid back in full at the end of the loan term.
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. Once you select an appropriate option, a loan officer will guide you through all the steps needed to access your capital.
Right now, we do not specialize in commercial loan products. With that being said, our maximum loan amount should be able to provide you with enough cash to cover both residential and commercial projects.