As the market continues to improve we are starting to see more aggressive lending products come to market. California hard money lenders are increasing loan to value ratios and lowering rates. One program that has been very popular will bring a 3-8 year fixed single digit interest rate to the table on loan to value ratios as high as 75%. This program is available for most apartment and mixed use commercial properties.
The requirements for these hard money loans do include credit requirements. A minimum 650 credit score is needed. No mortgage lates on the subject property or primary residence in the last 90 days is also required. Paperwork needed for these loans will vary from transaction to transaction, and while the paperwork will be more than our more traditional rate hard money products, it will still be less than what a typical bank loan will require.
For many borrowers, being able to secure a loan to value at the 75% mark gives a lot of flexibility. Coupling that with very attractive rates makes this product a great option that can often times dramatically lower the monthly payments being made on an existing hard money or private money loan. In purchase situations the added leverage can be useful to decrease the down-payment required, while the low rates can be helpful in getting a property to cash flow when compared to more traditional hard money loans.
These loans are typically amortized over 30 years with a fixed period that can range from three to eight years. In addition, we can also assist with a similar product for single family residences (investment/business purpose only) and 2-4 unit properties. Usually these types of properties will require the loan to value to be reduced to 70%, but the rate and terms are still very attractive.
For more information or to discuss a specific scenario please give me a call at 877 462 3422. Usually we can let you know whether your transaction will fit our program with a brief conversation about the property and your situation.
Comments (0)Subscribe to CommentsComment