Hard Money Loans

Data driven hard money lending. Get your loan in under 10 minutes

Hard Money Loans

Data driven hard money lending. Get your loan in under 10 minutes

Hard Money Loans

Data driven hard money lending. Get your loan in under 10 minutes

Hard Money Loans

Renovate, rehab and resell your property with a hard money loan

Interest Rate

10 - 12.75%

Origination fee

from 1.875%

Loan To Cost (LTC)

up to 90%

Construction Financing

up to 100%

Loan To ARV

up to 80%

Term

up to 24 months

Minimum Loan Amount

$100,000

Maximum Loan Amount

$5,000,000

Minimum FICO

650

Type of Property

Residential 1-12 units, condos, townhomes

Benefits For Borrowers

Instant Proof of Funds Letter

Interest Only Payments

Discounts for Repeat Borrowers

Instant Term Sheet

No Hard Credit Pull

No Junk Fees

All Hard Money Loans

Fix & Flip

Funds for purchase + rehab or refinance + rehab

Get up to $5,000,000

Interest rate 10 - 12.75%

Origination fee from 1.875%

Up to 100% construction

Rent

30 year fixed product for stabilized properties

Get up to $3,000,000

Interest rate from 7.5%

Origination fee 2-3%

30-year fixed rate

Ground Up

Construction loans for residential builders

Get up to $5,000,000

Interest rate 10 - 13.25%

Origination fee from 1.875%

Up to up to 24 months

Key Questions About Hard Money Loans

Hard money loans are short-term, asset-backed loans in which the property acts as collateral for the funds that are borrowed. These collateralized loans are originated by hard money lenders, which commonly fund fix and flip investors, landlords, and even commercial project developers.

Hard money loans are most commonly used to finance fix-and-flip real estate projects. However, hard money loans can also be used to complete fix-to-rent projects, invest in rental property and build residential homes from the ground up. Hard money loans can also be used to refinance an existing property or to purchase a property as a business rather than as an individual.

 

The minimum FICO score is 650.

Despite what some might say, institutional hard money lenders, such as New Silver, require borrower’s credit review when underwriting files. Importantly, when applying for a loan, the borrower’s credit score isn’t impacted, as only a soft pull credit is performed during underwriting. In certain scenarios, borrowers with an excellent credit history and credit score may qualify for a lower rate than borrower’s with a poor credit score. The hard money lender determines the final rate that is offered, based on the underlying collateral, borrower’s experience, census data and borrowers’ credit.

The minimum loan amount of $100,000, property as-is value of $100,000 or higher

No, we do not finance rural property.

Yes, an appraisal with interior access is required.  For projects with 5+ units, a full commercial appraisal will be required.

Hard Money Loan Pros and Cons

Pros of Hard Money Loans

Hard money loans can be approved in just minutes and close in just a few days. The lending process is much smoother than it is with traditional lenders, because the lending criteria is not as stringent. Instead of putting hard money borrowers through difficult underwriting, hard money lenders are primarily concerned with the final value of the property that an investor intends to purchase.

A hard money lender will still evaluate each borrower’s credit score during the loan application process, but there is no strict approval process and very little paper work in comparison to a traditional loan:

Cons of Hard Money Loans

The biggest disadvantage of using a hard money lender is that hard money loans typically have higher interest rates than traditional loans. While this is one of the most signficant hard money loan negatives, it’s worth keeping in mind that some hard money lenders (like New Silver Lending) offer interest only monthly repayments, and loans are meant to stay open 12-24 months. This helps to offset the higher interest rate involved with a short term real estate loan. In addition, New Silver also offers 30 Year Hard Money Loans for Rental Properties specifically.

Another big risk when working with a hard money lender is that if the borrower defaults on the loan for an extended period of time, a hard money lender can potentially force the property into foreclosure. While this is a risk, it is worth noting that many traditional mortgage lenders can actually do exactly the same thing if a borrower consistently defaults on a traditional loan.

Another drawback is that hard money lenders tend to require a larger down payment than a traditional loan. Most hard money lenders expect a down payment of 20%, although this does vary from lender to lender.

Hard Money Loans Near You

New Silver Lending offers fast closing hard money loans in the following US States.

Hard Money Lending Resources

New Silver’s extremely easy to use hard money loan calculator can help you analyze the ROI of a secured loan for a fix-and-flip project. It provides a quick summary of the down payment, interest rates, monthly repayment and closing costs associated with a hard money loan.

This house flip profit calculator is designed to show you how much profit you can make when executing a fix and flip property deal. It includes a detailed breakdown of Net Profit, ROI, Total Cash Invested, Return on Equity, Loan Amount, Down Payment & Monthly Loan Repayment.

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