Hard Money Loans - 100% Acquisition and Rehab Loans

Hard money loans are a good way to take advantage of the opportunities created by the downturn in today's housing market.  I get a lot of calls from real estate investors looking for hard money loans to purchase and rehab property they can purchase below market value.  Many are looking for 100% financing, which is a tough thing to find in today's lending climate.  With that being said, there are programs that do allow for 100% acquisition financing on these rehab transactions.

The guidelines for these 100% acquisition and rehab loans are pretty straight forward.  You will need cash or additional collateral in order to qualify, if you have no cash or additional property with equity in it, you should find a partner.  How much cash you will need depends on your particular transaction.  Very basic guidelines for this program allow for 100% financing on the acquisition of real estate provided you are able to bring in cash or additional collateral to cover the cost of rehab, 4-6 months of interest reserves and points and fees.

Depending on the particular property, acquisition cost and after repair value, we can sometimes fund more than the sales price.  This program does not require an appraisal, but appraisals and/or comps will help us in determining the ARV.  These hard money loans typically are written for 12 months, no prepayment penalty, at 12.5%.  There is no minimum credit score to qualify for this program, but major credit delinquencies will need to be explained.  Recent foreclosures, bankruptcies, etc. are items that may require mitigating factors.  Experience with rehab projects are a plus, but also not required.

Hard money lenders have a reputation for being quick, but with the recent credit issues, many hard money loans are taking much longer to fund than they have in the past.  This program usually has a 2 week turn time to funding from application, but can close quicker if need be. 

Feel free to contact me with any questions. 877 462 3422. This is primarily a California program, but we can help in other Western US states.