Hard Money Lending Loan Structure

• The loan origination fee is automatically included in the loan amount and deducted at closing.

• Monthly payments are interest-only for the entire length of the loan. The rate is 1% per month for the first 8 months. At the beginning of the 9th month, the rate increases to 2%.

• The initial term is 4 months. If the loan is not paid off during this period, it automatically renews for another 4-month term. The 4% renewal fee will be due when the loan is paid off.
• At the end of this renewal period, there is no additional renewal fee, but the interest rate increases to 2% for the remainder of the loan.  We do this because a) we want to encourage borrowers to sell/refinance the property because the finance charges are putting the profit in jeopardy and b) we don't want borrowers to incur the additional renewal fee if they are able to payoff within a month or two.

• Late fees are assessed for every day that a payment is late, beginning with the day after it is due.

• Prior to closing, a Flood Certificate is ordered. If the property is determined to be in a Flood Zone that requires additional insurance, we reserve the right to nullify our loan commitment.

• Depending on your title company requirements, we may need to charge wire fees ($30) and/or delivery fees
• All borrowers are required to keep current on insurance and taxes.  We may send you a reminder that your insurance has expired or your real estate taxes are delinquent.  If you do not become current in a timely manner, we will make the payment and add it to your loan.  In addition, we will charge a $150 administative fee per payment.