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elcome to Frequently Asked Questions. This is the most transparent, up to date, valuable, resource for our clients. Everything you need to know is below. Please take some time to review. We have organized questions into categories to help you navigate your questions as fast a possible.
Every Question and everything you need to know about our Lending Program, Fees, Buyer qualification and everything else is included in our FAQ. We are frequently asked when do I need to have contact with our office. We don't need to talk in person until you have a property under contract. You can get everything in a much faster manner by going through the details below. Due to fast time constraints in getting loans funded, we are very busy with applications that are under contract. When you have a property under contact you can submit your application by going to Apply for Loan.
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In fact if you have a question that is not answered on the web site simply complete the form below and we will not only answer your question but we will mail you a $100 Wal-Mart Rebate Card as our way of saying thanks. So take a few minutes and go over the details below.
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Click on Any Question and the Answer will appear. Also you can search by keyword below for your specific Question.
We only fund investors. If you are a homeowner looking for financing we cannot help you! |
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To get an idea how much we will lend please visit our loan calculator.
Should there be anything on the background check we will still consider doing the loan on a case by case basis.
1.Maximum Loan amount is $250,000 per property. We only lend on single-family homes.
2. We have no minimum loan amount.
3. Loan based on After Repaired – Loan to Value established by an independent third party Evaluator viewing the property.
THE FOLLOWING WILL LOWER THE LOAN TO VALUE Home Owner vs Rent
-5% Reductions from above
If you do not own your own home then this reduction will apply.
Foreclosure
-5% Reductions from above
If you have had a foreclosure within the last five years this reduction will apply. We charge 1 additional point to do this.
Collections over $500
We will charge 1 additional point for this to happen. The above reductions in value if any will still be applied.
Background
Should there be anything on the background check we will still consider doing the loan on a case by case basis. We will charge 1 additional point for this to happen. The above reductions in value if any will still be applied.
If Our Value Is Lower
If our value does not match the value you are hoping for, we will still do the loan based on our value and the buyer can bring money in for the difference.
Value is Final
We will NOT adjust our final value. Again the buyer can bring the difference in.
Unfinished Basements
We do not give value for future finished basements or additions. Our value is based upon the property being in average condition.
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We WILL NOT lend on the following types of properties:
Rural, Agricultural or small farming communities, Recreational properties or cabins, Manufactured homes, mobile home, duplexes, triplexes and 4-plex, Commercial properties, Lots, Raw Land, Construction, counties with population under 75,000, major renovation such as foundation, trusses, additions, or changes to the structural integrity of the house.
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No down payment is required as long as the loan meets our After Repaired - Loan to Value or As Is Value including the above adjustments, if applicable. If the requested loan amount is more than the approved loan amount the buyer will need to bring the difference in as a down payment to get the loan closed.
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Unique Properties are properties with 900 square feet or less, properties with less than 2 beds, on or near a commercial corridor, around or across from rail road tracks or major street, road, highway and / or freeway system.
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For Unique Properties you take the After Repair Value minus the Cost of Repairs; we call this Adjusted After Repair Value (AARV):
If the property is $60,000 or more we lend 50% AARV
If the property is $59,999 or less we lend 35% AARV
We are frequently asked how we determine After Repaired Value. It is very simple. We look at the lowest comparable that is fixed up in good condition in the immediate area that is sold, and we also look at the lowest active in the immediate area that is in good condition. We then use the lower of these two. Basically Solds tell the history and Actives show the future.
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We do not provide funding for any of the rehab or repair costs. You as the borrower will be responsible for these costs.
Most of our clients get a Home Depot credit card to take care of the repairs cost. Many of them also work with vendors so they can get a net 30 or 60 days terms, or in some cases get financing from the vendors so they can pay the vendors when the property is sold or refinanced.
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We do not have a specific number that we provide as we determine this on a case by case basis. It usually depends on the size of the loan amounts to identify how many loans we will allow out at one time for the borrower.
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We look at each property on its own and not as a package deal. Since we look at them individually, we will fund multiple properties, however, each one has to be submitted through our application process one at a time and we will evaluate each property and determine what we will lend.
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We do not require any monthly payments for the initial term of the loan if applicable.
After the initial term, the forbearance/extension fee of 1 point will be charged based on the loan balance in addition to an interest payment for 30 days worth of interest.
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Discrepancy in Values
Once the loan application is submitted and the property is under contract we send out the independent evaluator from the nationwide independent third party company to do the evaluation of the property which includes an interior and exterior inspection and completion of our required internal form. The cost of these independent third party evaluations is payable via credit card, in full, at the time of application. The amount we will lend is based upon the final reconciled value of the evaluations. If the amount we will lend based on the final reconciled value is less than the purchase price we will still do the loan, the buyer will need to bring in the difference as a down payment.
General Guidelines
If you do not have the property under contract you can use the Loan Estimator Calculator to get an estimated loan amount range from the numbers you provide. We can provide the amount we will lend once the complete loan application packet has been completed and submitted even if the property is not under contract if you want to pay for the separate full evaluations. The separate full evaluations are done by independent evaluators from the independent third party nationwide company and these evaluations include an interior and exterior inspection of the property. The fee for these independent evaluations will need to be paid in full via a credit card at the time of application. Once the full evaluations are received and the final reconciled value has been determined, we will provide you with the amount that we will lend. You can then submit your offer on the property. Any difference in the purchase price and the amount we will lend can be paid by the borrower as a down payment. In most cases it will take 48 hours for a final loan value. The amount of time this takes truly depends on how fast you can get the Evaluator in the property.
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- Copy of the fully executed purchase contract
- Title Report from the title company and/or closing attorney. Mortgagee clause - DoHardMoney.com Its Successors and/or Assigns. The estimated loan amount will be the purchase price.
- Closing Protection Letter from title company - Mortgagee Clause - DoHardMoney.com - 1078 East 3300 South - Salt Lake City, UT 84106 (no loan number required)
- Wire Instructions for funding
- Evidence of Insurance on the property with vacant dwelling coverage for a minimum of 6 months. The amount of coverage has to be equal to the purchase price plus 10% guaranteed replacement cost at the minimum - Mortgagee Clause - DoHardMoney.com Its Successor and/or Assigns - 1078 East 3300 South - Salt Lake City, UT 84106
- If title is being taken in a company name then provide a copy of the corporate papers showing all signers. Please be aware that all signers for the company will also sign the loan documents as Personal Guarantors
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Sure. The property will need to "Stand on its own", meaning we evaluate the deal based on the value in the property not based on you having a new buyer for the property. So we follow our standard evaluations and all other guidelines we have. To get started you will need to submit a loan application and pay the evaluation fee.
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We DO NOT do second mortgages. However, if you can find someone that would be willing to provide you financing as second position behind our primary loan; you are welcome to use them. However, we do not do second loans and we do not loan money for rehab or down payments costs.
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We don't normally keep a running list of contractors for each area. The only thing we suggest is to contact local building places to see if they have a list of contractors, or possibly a Lowe's or Home Depot that might have a list of Contractors in the area they suggest. We have just started our Classifieds section for local business people to post on and are hoping that in the near future we will be able to direct you there, but at this time, it just isn't broad enough to accommodate every state in its search for local contractors. However, if you do find someone, please let them know they are more than welcome to post on our site for free for future customers at http://www.dohardmoney.com/classifieds_overview.php.
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We do not allow for cross collateralization on properties. Each property has to stand on its own. We have tried this in the past numerous times with very unpleasant outcomes.
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