How long does the loan process take?

The loan process can take as little as 10-15 days from commitment to funding. If the borrower fully completes the loan application and provides all requested documents a borrower can be approved for a loan in as little as 24-48 hours. After the borrower is approved and returns the signed commitment and fee a title search will be ordered. If title is clear then closing can be occur in as little as 7 days from the commitment date.

Do we provide pre-approval letters?

Yes, pre-approval letters can typically be provided upon request after an application has been submitted and approved.

What are the fees?

All fees will be disclosed to the borrower in the loan commitment. The fees vary by transaction. The borrower will generally be required to pay points. Each point is 1% of the loan amount. The borrower also must pay the fees for any appraisal, document preparation fees, inspection, lender’s legal fees and all closing costs (including title insurance and recording fees).

Will you lend on my primary residence?

No. We will not lend on a primary residence.

What are the loan terms?

Every loan transaction is different and will depend on the borrower, the collateral and the borrower’s plan for the collateral. We generally offer rates between 10-16% with points and terms of 6 to 18 months.

Are there pre-payment penalties?

No. There are no prepayment penalties. However, sometimes there is minimum guaranteed interest that must be paid on a loan. That means that if the loan requires minimum guaranteed interest of 6 months and the borrower pays the loan back in 4 months the borrower will still be required to pay a full 6 months of guaranteed interest.

What documents do I need to provide?

Please complete the initial loan application online and if your loan fits within our loan guidelines we will contact you to advise of the information and documents that must be provided to move forward.

Are there title fees?

Yes. We run a title search on all properties that are being offered as collateral. We need to confirm that our lien will be a first mortgage on the property. The borrower is required to pay the title company’s fees for the search. In addition, the borrower must pay recording fees and the fees for lender’s title insurance policy.

Do I need an appraisal?

Yes. The borrower must cooperate in providing access to complete a formal or informal inspection and appraisal. If we choose to hire a professional appraiser the borrower is responsible for the appraisal fees. The borrower will be told of the fees in advance of scheduling any appraisal.

Do I need to own an investment property to get a loan?

Yes. You must own an investment property to get a loan from us. We require a first mortgage on an investment property to secure our loan. Therefore, we only loan to borrowers that have an investment property to pledge as collateral for the loan.

Do I need to use the loan proceeds for the property I am using as collateral?

No. The borrower can generally use the loan proceeds for another purpose. However, the borrower must disclose its intended use of the loan proceeds during the loan application process.