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A Guide to Finding the Best Hard Money Lender in Miami

hard money lender in miami funded modern contemporary home in florida

Introduction

Are you in Miami and looking for a reliable hard money lender? Look no further! In this guide, we will explore the different lending programs offered by Capital Funding Financial, helping you find the lowest rates for your financing needs. Whether you’re a real estate investor or an individual seeking a short-term loan, we’ve got you covered.

Miami Hard Money Lending Parameters

CAPITAL FUNDING FINANCIAL’S LENDING PROGRAMS FOR MIAMI, FL (UPDATED 2023):

If you need speed and certainty of closing, our Hard Money Program is the best option. With this program, you can benefit from the following features and requirements:

  • Loan Amount: Up to 65% Loan to Value
  • Term: 12 Months (longer terms by exception)
  • Rate: 9.99% – 11.50% Interest Only
  • Origination Fee: 2.00+ pts (based on credit experience, LTV, risk)
  • Loan Size: $100,000 – $25 Million
  • Valuation Method: Quick BPO, Inspection, or Appraisal
  • No Minimum Credit Score!
  • No Tax Returns or Income Documentation Required!
  • Foreign National Acceptable!
  • No Debt Service Requirement!
  • No Experience Needed!
  • 7 to 10 Day Closing Timeline (exceptions made for faster closings)
  • Can Close in an Individual Name or Entity
  • Cross-Collateralization accepted
  • Seller Seconds Allowed

If you’re looking for the highest leverage, our Bridge/Fix and Flip Program is the perfect choice. Here are the features and requirements of this program:

  • Loan Amount: Up to 90% Total Loan to Cost or 75% Loan to Value
  • Renovation: 100% of the Renovation can be funded | Max 90% Total LTC
  • Term: 12 Months (longer terms by exception)
  • Rate: 9.75% – 12.50% Interest Only
  • Origination Fee: 2.00+ pts (based on credit experience, LTV, risk)
  • Loan Size: $100,000 – $7.5 Million
  • Valuation Method: Appraisal
  • 680 Minimum Credit Score (exceptions granted to 620)
  • Foreign National Acceptable!
  • No Debt Service Requirement or Rental Income Needed!
  • 21 to 28 Day Closing Timeline (exceptions made for faster closings)
  • Close in an Entity
  • Single Family and Multifamily Loans Accepted
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If you’re aiming for the lowest rate, our Rental/DSCR Program is the one for you. Here are the features and requirements:

  • Loan Amount: Up to 80% Loan to Value
  • Term: 30 Years
  • Rate: 6.50% – 8.50% (Fixed or Interest Only)
  • Amortization: 3/1 ARM, 5/1 ARM, 10/1 ARM, 30 Year Fixed Options
  • Origination Fee: 1.50 – 2.50 pts (based on credit experience, LTV, risk)
  • Loan Size: $100,000 – $7.5 Million
  • Valuation Method: Appraisal
  • 660 Minimum Credit Score (exceptions granted to 620)
  • Foreign National Acceptable!
  • Debt Service Required (Ranging from .75 to 1.10 based on pricing)
  • No Experience Needed!
  • 21 – 28 Day Closing Timeline
  • Close in an Entity
  • Short Term Rentals allowed with Track Record
  • Vacant Properties allowed by using Market Rent
  • Portfolio Loans Available
  • Single Family and Multifamily Loans Accepted

If you’re considering a Ground Up Construction Project, our Ground Up Construction Program is perfect for you. Here are the features and requirements:

  • 12, 18, or 24 Month Term
  • Single Family, Multi-family, and Commercial (case by case exceptions)
  • Up to 85% LTC | 65% – 70% LT-ARV
  • No Interest Charged on Undrawn Funds
  • Rate = 10.99% – 12.99%
  • Origination Fee = 2.00 – 3.00 pts (based on credit experience, LTV, loan size)
  • Minimum loan amount of $500k – Max of $50M (exceptions for higher amounts)
  • 21 -28 Business Day Closing Timeline
  • Must close in an Entity

For Commercial Loans, our Commercial Loan Program is your go-to choice. Here are the features:

  • 12, 18, or 24 Month Term
  • Up to 75% LTV
  • 1 Million – 15 Million (case by case exceptions)
  • Office, Retail, Storage, Industrial, Multi-family, others
  • No DSCR required = Great fit for un-stabilized commercial properties
  • Rate = 10.99% – 13.99%
  • Origination Fee = 2.00 – 3.00 pts (based on credit experience, LTV, loan size)
  • Minimum loan amount of $500k – Max of $25M (exceptions for higher amounts)
  • 21 Business Day Closing Timeline
  • Must close in an Entity
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Miami Hard Money Loan

hard money loan closed in Miami, FL

If you’re wondering what a hard money loan is, let us explain. A hard money loan is a loan given to a borrower from a lender based mainly on the worth of the asset being used as collateral. Unlike traditional banks, which focus on the borrower’s credit and income, hard money lenders prioritize the value of the underlying asset. These loans are typically used as short-term options for real estate investors or individuals looking to acquire, rehab, or stabilize properties.

So why would a real estate investor in Miami choose a hard money loan over a conventional loan with lower rates? There are several reasons:

  1. Quick Funding: While traditional banks can take weeks or even months to fund a loan, hard money loans are typically financed within 7-14 days, providing you with the speed and certainty of closing you need.

  2. Property Needs Work: Conventional banks are often hesitant to lend on properties that require repairs. However, hard money lenders are willing to finance properties that may lack cash flow or need physical improvements as long as the borrower has sufficient equity in the property.

  3. Not Based Solely on Credit or Income: Traditional banks heavily rely on credit scores, income, and the borrower’s ability to repay the debt. Hard money lenders, on the other hand, focus on the value of the underlying asset compared to the loan amount. At Capital Funding Financial, our capital decision is primarily based on the loan-to-value ratio (LTV), offering loans with an LTV of 65% – 80%.

Now, let’s talk about interest rates. The interest rate for a hard money loan in Miami depends on various factors, including the loan-to-value ratio, the borrower’s credit score and income, the property condition and location, and the borrower’s equity in the property. At Capital Funding Financial, we offer the lowest rates starting at 6.99%*.

When it comes to fees, hard money lenders typically charge an origination fee of 3% to 5% of the loan amount. Additionally, there may be fees for file preparation, legal services, appraisal, and loan processing. However, at Capital Funding Financial, we offer a low origination fee starting at 1.50%*, and we don’t burden you with hidden junk fees.

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If you’re concerned about prepayment penalties, rest assured that Capital Funding Financial offers hard money loans in Miami with no prepayment penalties. This means you have the flexibility to repay the loan early without any additional fees.

When it comes to closing time, Capital Funding Financial stands out from the crowd. As a direct lender, we have the ability to close loans within a few days when provided with a complete loan package. While the typical deal takes about 1 to 2 weeks to fund, we strive to provide quick and efficient service.

Appraisals and broker price opinions are essential in the lending process. At Capital Funding Financial, we accept both appraisals from other lenders and broker price opinions. An appraisal is only required when there is renovation involved.

For fix and flip projects, the hard money lender will require a detailed description of the work, a cost analysis, and a timeline. The lender will release funds in draws for listed repairs and may also request income statements and a credit report to ensure the borrower’s ability to repay the loan. However, hard money lenders primarily focus on the asset value rather than the borrower’s credit score.

Now that you know all about hard money loans, if you’re looking for financing for a rehab, fix and flip project, or any other investment purpose, contact us today at 954-320-0242 or visit our website for more information.

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Conclusion

Capital Funding Financial is your trusted hard money lender in Miami, offering a range of lending programs tailored to your specific needs. With competitive rates, quick funding, and a focus on the value of the underlying asset, we are here to help you achieve your real estate goals. Don’t wait any longer – apply now and get pre-approved today!

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CALL US TODAY AT 954-320-0242

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