Hard Money Loan Programs in Massachusetts & Rhode Island
Flexible private lending solutions for real estate investors with fast approvals, short terms, and property-backed financing.
Types Of Loans:
Construction/Renovation Loans
A commercial investor/rehabber can use a private loan as a lending tool for financing when he/she only plans on holding the investment property until the construction or rehab work has been completed and the property goes to sale. A construction loan will typically be disbursed in increments as a borrower needs funds to complete construction of the property. Once a property has been constructed and/or renovated and sold for a profit, the loan with the private lender is paid off in full or gradually in consideration of a private lender partially releasing some of the collateral. The typical maximum loan-to-value allowed on a subject property is 80% with disbursements made to a borrower pursuant to the terms and conditions of a construction holdback agreement signed at closing.
Bridge Loans
A bridge loan is a short-term loan which acts as a “bridge” loan for a borrower who typically is in the process of refinancing between one conventional loan to another. A bridge loan is useful when a borrower needs financing for a short period of time where obtaining a long term conventional loan with a fixed rate doesn’t make sense (i.e. sale of the property is imminent) and in instances where there will be an extended period of time before a conventional lender is ready to close on a new loan. The typical maximum loan-to-value allowed on a subject property/collateral is 80%. Lenders will often require documentation that the property is under agreement to be sold or that a commitment letter has been issued from a conventional lender.
Acquisition/Purchase Loans
A private loan can be used to purchase real estate when a borrower fails to meet conventional bank standards or does not have time to wait for a conventional lender’s notoriously slow underwriting and closing process. Private loans for purchase allow for borrowers with low, bad or no credit to acquire property. The typical maximum loan-to-value allowed on a subject property not purchased at a foreclosure sale is 80%. Loan terms are from 1-2 years.
Cash-Out Refinances
Cash-out refinances allow a borrower to extract equity from real estate already owned in order to get a “cash out” and/or to liquidize some capital. It is often a useful investment tool as it can quickly generate additional working capital for other projects. The typical maximum loan-to-value allowed on a subject property is 70%.
General Lending Parameters:
Transparent lending guidelines so you know exactly what to expect before applying.
Loan Terms |
Details |
|---|---|
|
Property Types |
Non-owner occupied residential; commercial; all income producing properties; rehab properties; ground-up construction; land. |
|
Lending Area |
Massachusetts, Rhode Island |
|
Loan Term |
6 – 12 months (longer terms accommodated through extensions) |
|
Monthly Payments |
Interest Only |
|
Interest Rates |
12-14% per annum |
|
Loan to Value |
Land Only – Up to 60% |
|
Mortgage Position |
1st Mortgage Position |
|
Turn Around Time To Close |
7-14 days from receipt of signed commitment letter. In a short period of time your financing needs will be resolved!! |
Fees & Requirements:
Fees & Requirements |
Details |
|---|---|
|
Origination Fee |
3% of total loan amount (paid at closing) |
|
Origination Deposit |
Applied toward closing costs |
|
Prepayment Penalty |
None |
|
Broker Fee |
When applicable a broker fee of the greater of 1.5% of the total loan amount or $1,500.00 |
|
Due Diligence |
Inspection/appraisal, internal review, title report – satisfactory in all respects to the Lender |
Areas Served:
We offer construction, renovation, acquisition, purchase, and bridge loan programs in the following cities in Massachusetts and Rhode Island: