INTEREST RATES START FROM 7.5%
We review each loan on a case by case basis. The following are some of the Hard Money loan programs we offer.
|LOAN TO VALUE|
|· Up to 80% LTV Purchase and Refinance|
· 65% ARV
|California and Nationwide|
|$200,000 to $15,000,000|
|TYPES OF LOANS|
|Acquisition, Refinance and Cash-Out|
|Starts from 7.5%|
|TYPE OF PROPERTIES|
|Residential Single Family|
Commercial/Mixed Use/Apts/Multi Family/5+ Units
Fix and Flips
|First Trust Deeds, Second Trust Deeds|
|6 to 36 Months|
The process for submitting and getting a Hard Money loan approved is simple.
Once your loan is submitted, it takes approximately 24 to 36 hours for an initial desk review and to obtain a Letter of Intent. After the loan is submitted, the typical time frame for the loan to close is approximately 5 to 14 business days.
WHAT ARE HARD MONEY / PRIVATE LOANS
Hard money loans, (otherwise known as private mortgage loans) are made by private lenders instead of traditional / conventional lenders such as banks, lending institutions, or government agencies. Usually, they are short-term (3 months to 5 years) ‘hard money’ or asset-based loans, and the decision to lend is based primarily on the equity and value of the property being put up as collateral, rather than borrower’s credit. These loans offer a speedy source of funding for borrowers who wish to acquire, rehabilitate, or cash out equity of income producing property, as well as those who otherwise would not qualify for conventional financing.
Hard money loans also assist real estate borrowers, who are in need of immediate financing, to obtain funds without the need to provide the financial documentation required by traditional institutional lenders. Hard money loans are based on a maximum of 70% to 80% of the appraised value.
On first position loans, borrowers can expect to pay interest rates which range from approximately 7.5% to 11.99%. On second position loans, the rates are higher and range from approximately 8.5% to 12.5%.
SPEED OF CLOSING
Conventional mortgages usually take between 45 days and 90 days to fund because a detailed examination of the borrower`s credit history and a thorough evaluation the borrower`s current financial status is conducted. Wilshire Fund, however, typically averages the completion of its transactions within 5 to 10 business days after the loan is submitted. Since the property itself is the main criteria used to determine loan eligibility, the approval process is more expeditious.
EASY APPLICATION PROCESS
While a borrower`s lack of up-to-date personal financial information would negate or at least delay approval for an institutional lender, it should have no effect on Wilshire Fund on the ability to obtain a private mortgage loan. Wilshire Fund bases their decisions on the asset used for collateral — the property.