HARD MONEY MORTGAGE LOANS – PRIVATE EQUITY INVESTOR
Please note: As of October 2015 – we are no longer offering Hard Money Loans.
Five Stars provides our client’s with access to every lending source available in market today. One of the valuable resources is private equity funds sometimes called “hard money” Hard Money lenders provide a valuable niche in today’s market, filling the void left in the wake of the sub-prime mortgage crisis and cutting through the red tape associated with other mortgage loans.
Please note all hard money purchase loans require a min of 30% down payment. Also note for purchase loans we lend based on the sale price of a property, not the assumed higher appraised value. No Primary residence homes, raw land or lots loans permitted.
Hard Money Refinance is a great way to lower an existing high interest rate on your current hard money loan, or cash out some equity to pay off higher interest debt. Some also use this to pay off a balloon mortgage that may be due. Just like the hard money purchase program, equity is the key.
Hard Money or Private Equity is far different from other more traditional “conventional” financing sources. Hard money lenders typically lend solely based on the equity in the home. Due to the extreme demand on hard money lenders and their ability to pick and chose which loans they wish to provide… most hard money lenders prefer refinance loans to purchase loans. Five Stars Mortgage does have ready access to private equity funds for hard money purchase loans.
There are many advantages to the hard money loans and also some drawbacks that real estate investors should be educated about:
Hard Money Benefits
- Ability to close loans very fast, in as little as 3-5 days.
- Credit is only checked for judgements or liens that may need to be paid in order to avoid the private equity hard money lender from any title problems down the road.
- Income and Asset documentation is not needed in most cases.
- If you have equity… you pretty much have a loan.
Hard Money Caution
- Hard money typically has higher interest rates (6-12%) depending on the risk level of your particular loan. Minimum paperwork, little or poor credit and fast closings always comes at a cost.
Five Stars Mortgage is partnered with the most respected private money sources in the market today. As with any other loan program with Five Stars Mortgage, there are no surprises. All rates and fees will be discussed in advance for your hard money loan and the agreed upon terms is what we deliver. There are never any last minutes surprises as you may find prevalent in this area of the market.
We work with many investors that use Hard Money loans as a means of temporary financing while the either work to sell a property. In some cases the investors or homeowners are using hard money to rehab a property to increase the value. In other cases our clients cash out in order to fix troubled credit so that they can refinance into FHA or other conventional loan programs in a short period of time. Yet other investors use hard money as a means to acquire property with little money out of pocket and for speed of the transactions.
There are countless uses for private equity hard money loans and we understand all of them. Five Stars Mortgage is the premier source for your hard money and private lending needs. We understand time is important, as a result we are available to serve you 7 days a week. Please submit the quick request here to have a Hard Money Specialist contact you today. You can also call ph: 800-871-2636
Specialized Hard Money Programs
We have a new program for investors looking to purchase REO’s or even for FHA fallout loans that cannot be financed conventionally. Conventional lenders have limited investors to only having four properties financed at one time. This means if you own a primary residence and three investment properties, a conventional lender will not be able to offer you a mortgage on the fourth investment property under any circumstances. By using our hard money investor loan program you will be able to purchase as many investment properties as you can reasonably sustain. The requirements of our investor hard money REO purchase program are:
- $80,000 min loan amount on hard money loans.
- No Income Documentation Required (bank statements and other asset verification may be reviewed)
- 30% min down payment required
These loans are underwritten in a “makes sense” fashion with no red tape. If you can show an ability to repay the loan then the chances are we can get you approved under this investor purchase program. This will allow you to maximize your cash and purchase more bank REO’s or other undervalued properties at a great profit.
One of the great featured about this loan program is that it is not an adjustable rate mortgage. It also has no prepayment penalty associated with it. Loan terms can be extended to 30 years. Interest rates are still near all time lows in 2016. It’s a great time to invest in Florida real estate. Click here to get started today.
Please note – certain borrrowers may fit better in a Non Conventional loan option. Please be sure to read all about the Non Conventional loans here.