Reasons To Fund Your Investment Property with New Silver
Frequently Asked Questions
Yes, we are a direct lender that provides asset-based loans at scale. With asset-based lending, the underwriting process can be more lenient than conventional lenders. 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 hard money mortgage rates are higher than a conventional loan is because of the risks involved in the transaction. Unlike a residential 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 private money lenders. Hard money loan rates are therefore higher, in order to compensate for the additional risks involved in the deal.
The origination fee (loan points) is usually between 2-3%, but this varies based on the loan amounts, the loan term, the ltv and the experience of the real estate investor. To work out the expected monthly payments, interest rate and closing costs, it is best to use our hard money loan calculator.
On this point, it is also worth noting that 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 short, yes. While our credit requirements are not as stringent as a traditional mortgage lender, we do review the credit history of all our borrowers when issuing real estate loans. 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.
Right now, we do not offer a commercial hard money loan product. With that being said, our maximum loan amount should be big enough to cover both residential and commercial projects.