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Loan Programs

Our private or "hard money" loans are quick-close loans based upon existing equity in the property. The reasons that borrowers and their brokers come to us change as market conditions change, but are usually because a bank loan is not suitable for some reason. These days these reasons usually are:

  • Short time to close: Such as the loan falling out with a bank 'at the last minute' on a purchase or the borrower otherwise needing funds in a hurry.
  • 'Cash, no contingency purchase': Often for REO purchases some of our borrowers buy 'all cash' and combine their down payment with our quick funding to purchase the property. Alternatively, buyers can buy all cash and close a loan with us shortly after purchase. Either of these options in this market will usually make their offer more competitive and more likely to close and/or close at a lower purchase price.
  • Weak credit: Such as recent foreclosure or bankruptcy.
  • Weak borrower income documentation: Such as the borrower having been out of work for some time and recently gotten a new job.
  • Weak property income: Such as the property being only partly rented.
  • Property needs work
  • 'Unusual borrower': Such as a trust or an inter-family transfer.

Loan Guidelines:

  • Loan Amount: $50,000 to $2,000,000. Higher loan amounts considered on a case-by-case basis.
  • Use of Funds: Purchases, Rate & Term Refinance, Refinance Cash Out, Construction.
  • LTV: Single family homes, units and other commercial property up to 70% LTV on purchases and 65% on refinances. 30-50% LTV on land and lots.

  • CLTV: Subordinate seller or other junior financing generally okay. For purchases, 10% down minimum is usually required even with subordinate financing.
  • Term: 6 months to 5 years. Sometimes longer.
  • Occupancy: Non-owner or owner for commercial property. For SFR-4units, preference for non-owner, but owner on a case-by-case basis (usually lower LTV).
  • Rates & Fees: Usually 9-14% interest-only, fees 3-5pts.
  • Credit: No minimum FICO.
  • Eligible Property Types: All kinds of residential property, commercial property and land.
  • Location: California only, with a preference for Northern California.
  • Approval & Closing: 1 to 2 weeks from complete package to close.