Loan to Value
The #1 goal of our company is to see real estate investors, who get money from us, make a profit from their projects.
We will only provide financing if we can see by the numbers that you will make money.
You can get real estate investment financing from us based on the after repair value (ARV) of the property.
The maximum ARV we will lend to is 70%.
We finance 100% of the rehab cost and will finance up to 100% of the purchase price...
As long as it does not exceed 70% of the after repair value (ARV) as determined by an independent evaluator sent to the property (See Rehab Cost Section Below For Further Details).
You can quickly see how much we'll potentially lend you on a project by using our loan calculator. Click Here.
Points, Rate and Loan Term
Below is based on the LOAN amount NOT the resale price of the property.
|Loans from $1,000 to $55,000|
|Loans from $55,000 to $110,000|
|Loans from $110,000 to $180,000|
When your loan commences, origination points will be added to the principal of your loan.
During the initial term, you will have NO MONTHLY payments due, however the interest will accrue during this time frame.
At loan funding, you will be responsible for a $495 processing and a $250 document prep fee. These are title company costs that need to be paid at closing.
The title insurance premium, hazard insurance premium, and the escrow/closing fees will be the responsibility of you the borrower.
If you haven't sold the property prior to the end of your initial loan term, you have the option to extend the loan.
You may extend the loan for up to three 30 day periods.
In order to do this, the lender has to approve that all terms of the note and trust deed have been met.
Then you will be responsible for paying 1% of the loan balance as an extension fee for each 30 day extension you take.
You will also be required to make a payment equal to 30 days interest for each extension period you take.
Maximum and Minimum Loan Amount
Maximum Loan Amount $200,000
Minimum Loan Amount $1,000
We fund 100% of the repair cost. The amount available for rehab cost is determined by an independent evaluator.
The difference between the the After Repair Value mutipled by 70% minus the cost of repairs as determined by indpendant evalutor will be used for the purchase.
In the event the borrower is purchasing the property for more that what is left, the borrower can bring the difference of funds to closing.
Any additional funds needed for repairs as established by the independent evaluator (provided by DHM) will be required to be held in escrow with DHM.
Let's give you an example:
After repair value (ARV) = $135,000
Rehab Costs = $20,000
Maximum Loan Amount - $135,000 * 70% = $94,500 minus $20,000 repair costs held in escorw = $74,500 towards purchase price.
Rehab funds held in escrow will be disbursed in a four draw system:
The borrower must spend 25% of the funds and then submit a draw request along with receipts showing 25% of the total repair work has been completed.
At that time an inspection will be conducted on the property to ensure the work is in fact completed.
Once the inspection is completed a reimbursement of the repair funds will be sent to the borrower.
This process will occur up to four draws.
We offer all of our potential loan clients the opportunity to partner with a pro and reduce their risks. You can see the details of this program by clicking here.
Time Line to Fund
DoHardMoney.com can move REALLY fast to get your loan closed. Delays are usually caused by one of the following:
1) Independent evaluators returning their reports.
2) The borrower completing the closing conditions.
3) Title report, closing protection letter and wire instructions sent from title company late.
4) Failure to have the correct hazard insurance in place.
Right now, the final loan amount we can offer you can take anywhere from 5 to 10 business days. This again will depend on the time it takes the evaluators to access the property and our evaluation review process.
Proof of Funds
You can print a proof of funds letter on demand 24/7 using our state of the art system.
Anytime you print a letter, the information is stored in our database so if anyone calls to verify, we'll let them know that funding is available pending our evaluations.
Unlimited proof of funds are available at no cost to our Gold, Diamond, and Partner With a Pro Members.
If you are not part of any of these programs, you can get 7 days free access to our proof of funds system on the next page. Click here.
If you have a property under contract and are ready to get started...
Or you simply would like to be pre-approved prior to making an offer...
It's really simple.
All you have to do is fill out our short two page application by clicking the orange "Apply For Loan Now" button below.
But before you do that, check out the states we serve page to make sure we can provide funding in your area. Click Here.