A hard money loan is a specific type of asset-based loan financing in which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money is similar to a bridge loan which usually has similar criteria for lending as well as cost to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.
Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan to value ratio is 65-70%. That is, if the property is worth $100,000, the lender would advance $65,000-70,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.
Hard Money Commercial Loans* Provide Businesses The Bridge Financing They Need Until They Secure Longer Term Financing, Our Hard Money Commercial Loan Programs include hard money construction loans, aka hard money commercial bridge loans are below*
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Announcement: We’ve just added some new (Non Hard Money) Attractive Commercial Mortgage Programs (Purchases and Refis).
- Commercial Loans Up to $20,000,000
- Down Payments As Low as 15%
- Programs That Include Inventory and Equipment
Call or e-mail us with your scenarios. You can contact us 7 days a week.
A Few Highlights About Our Hard Money Commercial Loans*
We represent a group of private commercial lenders, specializing in hard money loans for commercial property acquisition and refinance. Our creative financing expertise enables us to close on these equity-based commercial hard money loans of $400,000 and up.
Hard Money Commercial Loans – Program Highlights
LOAN SIZE: $300,000 to $20,000,000+
LOAN TERM: 1 – 5 years
LOAN-TO-VALUE: Up to 75%
LOCATION: Throughout U.S.
INTEREST RATES: 8% – 14% depending on loan type, structure, risk profile
PAYMENT: Interest only or principal amortization
DSCR: Minimum 1.2
EARLY REPAYMENT: Case-by-Case basis
CLOSING POINTS: 2 – 5%
SECURITY: 1st Mortgage Lien. Additional collateral on case-by-case basis
PROPERTY TYPES: Multi-family, mixed-use, office, warehouse, retail, industrial, hospitality, and special use properties considered
EXPENSE DEPOSIT: Initial Underwriting: No charge
Acceptance of Term Sheet: Third Party Expense Deposit
Acceptance of Closing Letter: Legal/Closing Expense Deposit
Unused expense deposits refundable