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 loans have higher interest rates than conventional lenders is because of the risks that come with the mortgage agreement. 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 the lender. The higher interest rate compensates for this risk, which traditional banks do their very best to avoid at all costs. A hard money loan effectively makes it possible to secure a home loan for an investment property.
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 investor. To work out the expected monthly payments of a direct loan, 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 lender, we do review the credit history of all our borrowers and private investors when issuing a hard money mortgage loan. 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 specialize in commercial hard money loan products. With that being said, our maximum loan amount should be big enough to cover both residential and commercial projects, which means a commercial loan might not be required.