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 traditional loans 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. We are ready to provide the private money lending solutions you need to help grow your real estate investments.
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 loans 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 the private lender. The higher mortgage rates compensate for this risk, and help explain why traditional lenders will generally reject applications for a house flip loan.
The origination fee (loan points) is usually between 2-3% of the loan amount, but this varies based on the loan term, the ltv, the interest rate and the experience of the investor. 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 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, and it is another major benefit of private lending.
In short, yes. While our credit requirements of a private money lender are not as stringent as a traditional lender, we do review the credit history of all our borrowers and private investors. 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 specialize in residential hard money loans rather than commercial hard money loans. With that being said, our maximum loan amount should be big enough to cover both residential and commercial projects, meaning a commercial loan might not be required.