FAQ’s – Hard Money Loans for Residential Properties

Tell me about Hard Money Loans.

Hard Money Loans are made to help real estate owners and investors acquire property, improve property, and repair property. Since getting cash for REI can be difficult, these loans offer the perfect solution to those who like to invest or “fix and flip.” They can be Residential, Multi-Family, REO, or Rehab loans.

Residential And Multi-Family Loans – These are for developing a residential home. The hard money can also be used to do foreclosure bailouts, property development, new constructions, and non-bankable transactions that are related to residential real estate.

REO Loans – REO loans are for homes that have gone through the foreclosure process and are now bank-owned. Traditionally, getting the money for this kind of property would be extremely difficult, especially when it comes to getting funding for repairs associated with REO properties. For many investors, this is a wonderful way to make things happen!

Rehab Loans – These are Hard Money Loans that are taken out when a property owner needs to remodel or do extensive repairs to a specific property.

What’s the typical loan structure like?

The Hard Money Loans our lenders offer are typically non-amortizing balloon loans. They mature within 9 to 12 months, making them extremely short term loans.

Can we hold the house’s title in an LLC?

Yes, but we typically prefer to do business with the home’s title being under a Corporation’s name.

I want to own and occupy the home. Can I get a loan?

Unfortunately, no. This is for investment purposes only.

Are there prepayment penalties involved?

Absolutely not! Most of the people who use Hard Money Loans pay off their debt shortly after they flip the home in question.

Do your lenders care how the loan is paid off?

To a point, yes. The preferred “Exit Strategy” is a home sale.

Can you take a 2nd lien on the position?


How soon can I expect an answer on my loan application?

Initial approvals happen within 24 hours. Actual money can come within 7 to 10 business days after the documentation has been provided.

What fees do you charge?

Usually, we’ll ask for 3% to 5%, depending on the size of the loan. We roll these costs into the loan, so no out of pocket fees will need to be paid by you.

What do I need to qualify?

There’s no “set in stone” standard, per se. We look for decent credit, good repayment history, and at least a 1.4 debt coverage ratio on the property. Overall, we want to see that you can pay off the loan as well as scheduled interest.

Do you require borrowers to use 3rd party escrows?

Yes. It’s safer that way, and that’s why we make the choice for you.

Can you finance it all 100%?

No, but we can do up to 90% financing for both purchases and rehabs.

Are there any location requirements for Hard Money Loans?

We service all 50 states.

What are your lending limits?

Hard money typically ranges from $75,000 to $1 million. In certain situations it can be more than $1 million, though.

What kind of buildings can you finance?

Though we focus on single and multifamily homes, we also are willing to help you fund mixed use buildings with a residential component. We can’t lend on co-ops, owner-occupied homes, rural properties, properties in very bad neighborhoods or properties that are in terrible condition. Lenders want to be able to get a good idea of the asset’s value, after all.

If I own a house and have a mortgage, can I use these loans to refinance if I intend on selling it?

Yes, as long as you don’t live in the house currently and have no intention of living there.

Do I need an attorney’s assistance?

It’s never harmful to speak with an attorney regarding personal and business matters, and often times, it may be the best thing you can do if you think that an attorney’s advice can help you. Although we aren’t a law firm and we cannot provide anyone with any legal advice, you are more than welcome to speak with an attorney that we use for our company. We truly want to get familiar with our clients, and help them in any way we can. Simply send an email to info@thecreditexpress.org and we’ll be sure to forward it.

Still need help?  If you have a question that isn’t answered here, or if you feel like you could use advice when it comes to the best route of financing for your personal needs, we are here to help you make the best choice!  You may call us at (678) 983-4555 or email: info@thecreditexpress.org.  You’re also more than welcome to visit our office.  Evening and weekend appointments are available.