Typically when we talk about hard money loans, we are talking about a short term bridge solution. Clients are looking to bridge a short term issue until they are able to secure their long term goal. Sometimes that is the sale of the property, other times it may be a refinance. With the changing market, however, there is a new product available that is well worth discussing - residential and commerical 30 year fixed hard money loans for investors.
There are a number of reasons why people are unable to obtain bank financing. Credit is a big one. Income documentation is another. For commercial properties, meeting stringent debt service requirement numbers is another. Even property type can be a hindrance to obtaining bank financing. In these situations, hard money loan options can help.
These 30 year fixed hard money loans in California are exciting. They are priced well - maybe not as attractive on the rates as a bank loan - but much better than one might expect. For residential properties, mixed use properties and multi-family properties, they will allow for leverage as high as 75% loan to value. For commercial properties that is typically going to be 70% max. Comparatively speaking, for a 30 year fixed loan option these are attractive and aggressive loan to value levels.
The commercial property 30 year fixed hard money loans are fairly uique. Many different commercial property types will fit into this program. That includes your more traditional commercial office, retail and warehouse space. It also, however, includes more out of the box commercial property types such as self storage and automotive properties. Finding a 30 year fixed rate hard money loan on an automotive property is pretty unique!
Use these products for acquisition, rate and term refinance or even cash out refinance transactions. For investors with a portfolio of rental units, there is also an option available to blanket 3 or more units. By blanketing multiple units, risk is lessened and the pricing can become competitive with even bank rate programs for investment properties.
Credit is a factor in qualifying for these products. A 650 mid fico is preferred, although by lowering the loan to value slightly we can help with credit down as low as 600. The paperwork required is minimal when compared to bank loans, and closing times can be quite fast. Valuations are needed, but in many cases - especially on residential units - BPO's can be used. This can reduce the cost and speed up the process.
For more information on these long term options, give me a call at 877 462 3422. I'm happy to discuss the various options we can assist with, and typically a ten minute phone call will give enough information for us to let you know whether we can likely help.