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What Exactly is a "Hard Money Loan?"
A
"Hard Money Loan" is simply a loan that is made based more on the "hard"
assets of the property involved, rather than the credit worthiness of the
borrower. In hard money lending the lender looks more at the value of
the property than the traditional income, assets, credit, and collateral of
the borrower. But as we all know there is no free lunch.
If
the lender is willing to overlook some of the traditional aspects of loan
underwriting in order to give the borrower the funds for his/her project
then the rate and points will be proportionately higher than for a
traditional loan. However, the loan will typically be underwritten and
funded in 10 to 14 days after receipt of all the required documentation.
So for many real estate investors the hard money route is a worthwhile
alternative to traditional bank financing.
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Do You Do Any Other
Types Of Hard Money Loans?
Yes. MayoBay will evaluate loan requests and the underlying collateral on a case
by case basis. There are many different types of hard money opportunities
out there. If your deal makes sense, we’ll try to find a way to finance it. |
What Is Acceptable
Collateral For A Rehab Loan?
We will lend on most non-owner-occupied residential real estate,
commercial and industrial properties and mixed use properties.
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Can I get
Pre-Approved For My Loan?
We can pre-approve your loan in writing (via e-mail) usually in less
than one day. |
How Long Will It Take
To Close A Loan?
If we have all the required documentation we can usually close in ten to
14 business days after receipt of all the documents. We find that the
appraisal and title are the items that require the longest lead time.
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Will You Fund Repair
Costs?
Sure, that's what we're all about. We will typically advance up to
three draws to fund repairs as
they are made. All draws will be made after site inspections and will be net
of the inspector’s fee. |
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How Long Will It Take
You To Fund Repair Costs?
That depends primarily on getting a timely inspection of the work
completed. Contact us so that we can contact our appraiser/inspector so they
can schedule a site visit with you. Upon receipt of the Inspector’s report
form we can typically fund in less than 48 hours.
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Is My Credit Score
Important?
Of course it's important, but it's not the most important factor.
MayoBay lends more on the value of the project than the credit worthiness of
the borrower.But we're not going to
lend to someone who is a dead-beat and never pays his/her bills, but if the
project makes sense and the borrower's credit score is not perfect MayoBay
will look at the entire situation and make a decision based on the value of
the project and the borrowers ability to pay back the loan.
We will run your credit report and review it to see if your credit
history gives us comfort that you can repay the loan. We base our credit
decisions primarily on the underlying collateral value and the viability of
the project and not your credit score.
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Will You Lend To A
First Time Rehabber?
If the project looks viable and your credit score makes us
comfortable, we will find a way to get your first deal financed.
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How Do You Determine
The Appraised Value?
We engage an independent appraiser familiar with real estate in your
local area. The appraiser takes the itemized list of repairs and
improvements and determines the value of the property "As
Is" and the After-Repair-Value, "ARV".
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Will You Extend The
Loan?
We will work with you depending on your needs and the situation.
Extensions are reviewed on a case by case basis and we generally charge a fee to extend. |
What States Do You
Lend In?
We presently focus our lending in PA, but will soon be expanding to
New Jersey, Delaware and look for our new office in Baltimore, Maryland.
We will also
review deals in other states on a case-by-case basis. If we can do
them we will try to help you. If we can't, do them we'll try to refer
you to a competent company that can help you. |
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