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.
Private Money Lending Guidelines
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.
- Loan Amount: $75,000 to $10 million
- 1st, 2nd or 3rd Position Mortgages
- Loan-to-Value: up to 75%
- Loan-to-Cost: up to 80%
- Loan Term: 6 months – 5 years
- Rates Starting at 6.99% (7.99% APR)
- Typical Points: 1-2
- Fast Funding – typically 5-21 days
- Bad Credit OK
- Mortgage Brokers Protected
Loan Types
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.
- Property Purchase
- Equity Cash Out
- 2nd or 3rd Position
- Refinance
- Rehab Fix & Flip
- Buy, Rehab & Hold
- Construction
- Note Purchase
- Discounted Loan Payoff
Property Types
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.
- Single Family Home
- Condominium
- 2-4 Units Residential
- Multifamily 5+ Units
- Retail
- Office
- Industrial
- Raw Land
- Hotels / Motels
- Gas Stations
- Senior Care Facilities
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.