We offer short and long term financing for real estate investors, and property owners that require a mortgage for a property that is either rented out, or is a commercial property. These types of loans are sometimes referred to as “Out Side Dodd-Frank” or “Business Purpose Loans”. Real estate owners seeking fast funding to purchase a property, get cash out, refinance to a lower rate or new term, rehab or construction have turned to Loanbox. With over $4 billion funded to date, we have an experienced team of mortgage professionals who are dedicated to providing exceptional pricing and service.
The key factor in private money loans is equity. The maximum LTV (loan-to-value) is typically 70%. An investor who is purchasing an investment property must put down at least 30% in cash or equity in another investment property.
Real estate investors who are flipping houses, rehabbing or building properties typically use private money due to speed. Private money loans can fund in a matter of days. It’s also easier for foreign nationals to get a private mortgage.
Private Money Loans, also known as Hard Money Loans, are primarily offered to real estate investors who are purchasing or refinancing a rental home or commercial property.
A borrower’s primary residence could be used as collateral for an equity cash out loan if the funds will be used for a business purpose.