Private Money Loan Terms

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Listed below are some of the terms and qualification documents required for a private money loan approval:

 

USE OF FUNDS: Residential non-owner occupied 1 – 4 family residential investment properties
Commercial properties of all types
General Business Financing
STATES: In all 50 states
LOAN SIZE: Up to $200,000 per Lender. Up to $500,000 Total.
LIEN POSITION: Flexible. Sometimes Unsecured.
STANDARD TERM: Revolving. Up to 36 Months.
MINIMUM PAYMENT: Varies. Typically about 2% of monthly balance.
REHAB LTV: 100% of the purchase and rehab costs, up to 100% of the After Repair Value.
EXAMPLE DEAL: $100,000 Purchase. $100,000 Rehab. $200,000 ARV.
Get up to 100% Financing, i.e. up to $200,000 for this Project (up to 100% LTV)
RELEASE OF FUNDS: Funds are available for full draw at any time
POINTS: 10 points.
INTEREST: Varies. Typically between 10 – 16%. Some loans starting at 0% for a year.
FEES DUE: Paid upon approvals.
PRINCIPAL’S FICO: 700 min FICO
GUARANTY: Personal guaranty required.
REQUIRED DOCUMENTS: Completed loan application & supporting documents, including, but not limited to:
(i) Private Money finance agreement
(ii) Loan applications
(iii) Personal Guarantee