Hard Money Lending Requirements

Requirements
 

Please read these requirements before submitting an application.

• PROOF OF FUNDS - You must show that you have available a minimum of 6 months of loan payments with a minimum of $20,000 in available funds.  The Proof of Funds should be in the form of a bank statement or printout with a beginning and ending balance for the last 30 days. If your account is in your company name, we will also need to see an Operating Agreement to verify that you are an authorized member of your company. 
• Interest  - We require at closing to hold 6 months of interest in our reserve account for the loan.  If loan is paid off before the end of 6 months,  any unused interest carry will be refunded.
• Renovation Proceeds - If property is in need of renovations,  We will need a complete renovation plan and budget prior to closing.  We will require 100% of all estimated renovation costs to be held in our reserve account at closing.  We will disburse proceeds directly to contractor based on 3 disbursment payments and collection of lien waivers.  Additional disbursing fee of $2,500 will be added to loan amount. 

After you have been approved for a loan:

• Purchase  we will need a copy of the contract as soon as  it is accepted you must fax or email us a copy. Until we receive the contract we can not commit to a closing date. Please specify the following:
   
  • Purchase price
  • Closing date
  • Title company information (name, location, and contact person)
    
    

 INSURANCE - We require full coverage on the property with insurance paid for for at least 6 months.  Full coverage must include earthquake coverage.  We will need your agents name and phone number to place us on the policy as loss payee

SPOUSE MUST SIGN OUR NOTE - For all borrowers who are married: Your spouse is required to sign our Note regardless of how you take title to the property.
 

NUMBER OF LOANS - All first time borrowers are limited to ONE loan. Once you have paid off your first loan with us, you will then be allowed to have a maximum of TWO open loans.
[The loan limit applies to per person (if single) or per couple (if married)]