Loan Guidelines

The first step in a private money loan process is to understand what options you have. We have a tiered option structure depending on what you are willing to contribute financially to the property you are purchasing. We will not loan funds to owner occupied homes or 2nd position. We only loan funds if we are 1st position lenders and you are rehabbing for resale. In some cases, we will lend to buy and hold (rental) properties but limit this to 12 months of financing and will require you to obtain conventional or other financing withing the 12 month time frame. Commercial loans are typically not for us but we will look at them under special conditions.


Rates (First Position):

  • 70% LTV at 8%
  • 80% LTV at 9%
  • 90% LTV at 10%
  • 100% LTV at 12% plus 2 points or 14% and 1 point
  • 100% Rehab Costs Funded
  • $300 Paperwork and Deed of Trust

Rates (less than $25K):

  • Applies to loans NOT in first position
  • Applies to loans under $25K
  • Used primarily to finish an over-budget rehab
  • Interest only payments until property sold
  • As low as 10% interest rate
  • $300 Paperwork and Deed of Trust

 

Terms:

  • First position only, always secured with real estate
  • Loans made to individuals and entities
  • Texas and Oklahoma Properties only (special circumstances apply outside these areas)
  • 8 - 14% Simple interest depending on the deal, interest only payments
  • Points only apply to 100% LTV funding
  • 3-12 month term, depending on the deal
  • Max LTV 70% of ARV (will accept higher with additional points)
  • All closing costs paid by borrower
  • You can close anywhere you like but $300 Paperwork and Deed are provided by our Title Company Lawyer

We do NOT:

  • Lend in 2nd position over $25K
  • Lend on any property intended to be owner occupied
  • Lend on commercial property except in special cases
  • Lend to Buy and Hold properties longer than 12 months
private money loan