Hard Money Loans, also known as a bridge loans backed by the value of the property, not necessarily by the credit worthiness of the borrower. Since the property itself is used as the only protection against default by the borrower, our hard money loans have a lower loan-to-value (LTV) ratio and a higher interest rate than traditional loans.
We offer hard money loans in New York only on mixed use properties, commercial properties and single and multi-family properties owned by investors. We do not lend nor offer loans of any type to individual home owners or if the borrower resides in the property in any capacity. Rates range from 11% to 14% and origination points range from 0 to 4 points. The final rate and/or origination points depend upon many factors including but not limited to the investors experience, the LTV, the length of loan, owner equity, property location and other factors. We typically lend up to 60% of LTV and require borrowers have their own cash in the investment as well; in certain circumstances we will lend at higher LTV rates but only in select cases when the LTV to the ARV is still very reasonable.
Note: at times we will consider joint venture relationships when hard money terms do not fit for us or the borrower. The is most commonly used when the borrower has located a great deal with excellent potential returns but is not able to secure a hard money loan from any source (typically due to a high LTV, and /or borrower having NO cash to put in the deal himself) and the borrower is also unable to find private money.
To inquire about our hard money lending please fill out the form below.