Terms vary by loan program. For loans on 1-4 family non-owner occupied residential properties 6, 12 up to 18 months. Loan amounts range from $50k to $2.5M+ up to 100% of Purchase Price up to 75% of the After-Repair Value, up to 65% Refinance & up to 50% Cash-Out. For loans on small-balance commercial properties, 18 months. With most loans, only interest is charged during the term of the loan, with the principal due at maturity.
Loan amounts are based on the value of the real estate asset that is being pledged as collateral. For 1-4 family, non-owner occupied residential properties up to 100 % of the purchase price, up to 75% of the after-repair value, up to 65% refinance & up to 50% cash-out.
Most states in the U.S.
Varies, basic documentation to underwrite the borrower and the property. This includes an application; authorization to run a credit report and background check; authorization to obtain IRS tax transcripts; copies of bank statements (proof of funds); property appraisal; copies of leases, if appropriate; renovation estimates; and documentation on the business entity.
Varies. Tax transcripts are part of our fraud prevention policy and submitting can help you secure better terms.
After Repair Value loan program as well as our loan program for commercial properties have a minimum FICO requirement of 600. For other loan programs, no set minimum but the borrower’s credit score is taken into consideration when underwriting the loan. We’ll review the individual’s history to determine if there is a repeating pattern of poor financial management or if an isolated incident affected the individual’s credit. We also look at the borrower’s credit in terms of the exit strategy. If the borrower intends to buy and hold rather than fix and flip the property, we will pay closer attention to FICO scores.
Processing and third party fees such as appraisals. In some cases, we can save you the cost of appraisal.
Typically, no pre-payment penalties on our loans. Interest is charged during the term of the loan, with the principal due at maturity. If a borrower can pay off the loan before the term is up, that is completely acceptable.
Most 1-4 family non-owner occupied residential real estate for loan collateral and mixed-use properties, office buildings, apartment complexes (5 units+) & retail spaces.
Up to 100% of the renovation costs, not to exceed to 75% of the after-repair value.
Ideal Capital Solutions is a commercial mortgage advisor for business purposes, rather than individual or personal interests. We do not work with funding for the purchase of any owner occupied residential properties. Loans are backed by non-owner occupied residential and commercial properties, and are issued to a business entity.
What type of documentation is required for the loan application?
Basic documentation to underwrite the borrower and the property. This includes an application; authorization to run a credit report and background check; authorization to obtain IRS tax transcripts; copies of bank statements (proof of funds); property appraisal; copies of leases, if appropriate; renovation estimates; and documentation on the business entity.
Hard money loans are a specific type of asset-based loan that is typically secured by real estate. Loans are backed by non-owner occupied residential real estate or small balance commercial real-estate. In some cases, multiple non-owner occupied properties are cross-collateralized in order to secure the needed loan amount.
Commercial loans are used for business purposes, rather than individual or personal interests. We work with commercial loans that are secured by non-owner occupied residential and commercial real estate.
A bridge loan is typically interim alternative financing used by a business until more conventional financing is secured. The bridge loan may also be used to cover short-term cash-flow issues.
A line of credit can be used for a variety of purposes, such as the funding of construction phases, specific business purchases or addressing cash flow needs.