Hard Money Construction loans & Rehab loans

Hard Money rehab loans for real estate investors and commercial contractors who purchase and rehab non-owner occupied commercial and residential properties.

At Hard Money 365 we will consider any construction, rehabilitation or real estate investment loan that is attached to non-owner-occupied residential and commercial properties with one to four units. Alternative properties such as land and condominiums will be considered on a case by case basis.

The underwriting of our loans is done in-house and by reviewed by our investors. Qualifications are based primarily on the amount of equity in the subject property. We do also; consider the financial history of the borrower. We do not base our decision on credit scores. Credit reports are used to verify the borrowers’ identity and to verify no past credit history.

 

 

Hard Money Lending Criteria

  • Term: 12-24 months
  • Closing: 7-10 business days
  • Collateral: Non-Owner Occupied Real Estate
  • Loan Type: Single Family Residence, Multi-Family, Construction loans
  • Lending in: California

 

Required Documents For Pre-Approval:

  • Past 2 Federal Tax Returns
  • Past 2 Months of Bank Statements
  • Purchase & Sales Agreement
  • Personal Financial Statement
  • Borrowers Authorization Form

 

Q&A: Rehabilitation

ACCEPTABLE PROPERTY TYPES

 

Does the rehabilitation construction have to comply with HUD's Minimum Property Standards? Only, if you plan to use a HUD loan in the future.

Is the program restricted to single-family dwellings? No. The program can be used for one-to-four unit dwellings.

Can the hard money rehab loan be used to improve a condominium unit? Yes, however, condominium rehabilitation is subject to the following conditions:

A. Non-Owner only;

B. Rehabilitation is limited only to the interior of the unit. Mortgage proceeds are not to be used for the rehabilitation of exteriors or other areas which are the responsibility of the condominium association, except for the installation of firewalls in the attic for the unit;

Can nonresidential (storefront) property be eligible for a loan?

Yes. Mixed-use residential property is acceptable provided the property has no greater than 25% (for a one story building); 33% (for a three story building); and 49% (for a two story building) of its floor area used for commercial (storefront) purposes. The rehab funds can only be used for the residential functions of the dwelling and areas used to access the residential part of the property.

Can a hard money rehab loan mortgage be an Adjustable Rate Mortgage?

Yes. An Adjustable Rate Mortgage is available to investors and non-profits are

Can mortgage payments (PITI) be included in the mortgage?

Yes, if requested in advance. In most cases the loan is an interest only loan.

Is a contractor required to do the work?

No. However, if the borrower wants to do any work or be the general contractor, they must be qualified to do the work, and do it in a timely and workmanlike manner. It is very important that the work be done in a time frame that will assure the completion of the work that will be agreed upon in the Rehabilitation Loan Agreement (signed at closing

Is only one appraisal required to establish the "after-rehab" value of the property?

Yes, provided the lender can be assured that the contract sales price is reasonable for purchase transactions or the existing debt on the property is low enough to assure a good equity position of the homeowner.