If you’re tired of the lengthy process and stress of applying for conventional financing, Capital Funding Financial can help. Whether you’re an experienced real estate investor or a first-time borrower, our hard money loans in Fort Lauderdale offer a quick and reliable solution.
Understanding Hard Money Loans
A hard money loan is a type of loan where the lender primarily considers the value of the asset used as collateral. Unlike traditional banks, which focus on the borrower’s credit and income, hard money lenders are more interested in the worth of the asset. Hard money loans are typically short-term, serving as a bridge to acquire or improve properties in various real estate sectors.
Why Choose a Hard Money Loan?
There are several reasons why borrowers opt for hard money loans instead of traditional bank loans:
Conventional banks can take a minimum of 45 days to fund a residential loan and even longer for commercial or development loans. In contrast, hard money loans are generally funded within 5-10 days.
Traditional banks often avoid lending on properties that require repairs. However, hard money lenders are willing to finance properties lacking cash flow or needing physical improvements as long as the borrower has enough equity.
Not Solely Based on Credit or Income
Traditional banks heavily rely on a borrower’s credit score and income, which can lead to rejections for high-income individuals with significant debt. Hard money lenders assess the value of the asset compared to the loan amount, usually lending around 50% to 80% of the property’s appraised value.
Interest Rates for Hard Money Loans in Fort Lauderdale
Hard money loan rates typically range from 10% to 15%. The exact rate depends on factors such as loan-to-value ratio, the borrower’s credit score and income, property condition and location, and the borrower’s equity. Capital Funding Financial offers some of the lowest rates in Fort Lauderdale, starting at 6.99%*.
Fees Associated with Asset Based Lending
Hard money lenders usually charge origination fees ranging from 3% to 5% of the loan amount. Additional fees for document preparation, appraisals, and loan processing may apply. At Capital Funding Financial, we offer low origination fees starting at 1.50%* and simple terms without hidden fees.
Payment of Fees
In most cases, the loan fees can be paid from the loan proceeds. The substantial equity cushion in the real estate allows for the inclusion of fees in the actual loan earnings.
Some lenders impose pre-payment penalties to ensure they receive a yield for their time and funds. However, Capital Funding Financial does not have any pre-payment penalties.
Closing Time for a Typical Hard Money Loan
As a direct lender backed by a family office, Capital Funding Financial can close loans within a few days when provided with a complete loan package, including appraisal or broker’s price opinion, loan application, and title commitment.
Hard money loans typically require an appraisal, but at Capital Funding Financial, we accept re-certified appraisals or new broker’s price opinions (BPOs).
Rehab or Fix and Flip Requirements
When completing a rehab or fix and flip project, the hard money lender will require a detailed description of the work, including a cost analysis and timeline. They will also assess the borrower’s experience in managing or performing real estate repairs. Capital Funding Financial offers fix and flip financing up to 75% of the after-repair value (ARV) and 90% loan-to-cost (LTC) with 100% of the rehab funded.
If you’re in need of a hard money loan for rehabilitation, fix and flip projects, or investment purposes, contact Capital Funding Financial today at 954-320-0242 or toll-free at 1-866-695-0092. For more information, visit our website for Hard Money Loan options.
Capital Funding Financial:
Fort Lauderdale Hard Money Lender | Fort Lauderdale, Florida