| Loan Type | Hard Money |
| Min Loan | $200,000 (Other) |
| Max Loan | $100,000,000 (Other) |
| LTV / CLTV | 65% – 75%LTV / 95% CLTV (Other) (#1) |
| Interest Rate | 9% – 18% (Interest Only) (Other) (#2) |
| Term | 6 months – 10 Years (Other) (#3) |
| Amortization | N/A(Interest Only) |
| DSCR | (Varies) (Other) (#4) |
| Credit Score | (Other) (#5) |
| PrePay Penalty? | Yes / No (Other) (#6) |
| Lock Out? | No / Yes(Other) (#7) |
| Interest Guaranty? | No |
| Exit fee? | No / Yes(Other) (#8) |
| Balloon? | N/A |
| Personal Guarantee? | Yes / No (Other) (#9) |
| Documents Required | Common: Appraisal, Environmental Report(s) (if/as required by Appraisal), Digital Pictures, Credit Report, Resume/Bio. (A list of requirements will be supplied by lender.) |
| Closing Time | 5 – 30 days (Other) |
| Lender Fee? | 1 – 8 (Other) (#10) |
| Broker Fee? | 1 – 2 |
| Eligible Properties | Most income-producing commercial properties (Other) (#11) |
| Eligible States | Varies (within US & Internationally (Other) (#12) |
| Other | 1.) UnBankable Commercial Loans has access to a dozen different professional, ethical “hard money” lending sources! Borrowers should request a quote to get a good, up-to-date idea of what’s available to them, given the particulars of their deal. Keep in mind, too, that the matrix displayed herein consists of the extremes (lowest & highest) in the range of parameters from all twelve “hard money” loans. In other words, a 90% CLTV loan might not be available for only 1 point, or in your state, or for your property type. (Besides, it’s just not practical to provide – and maintain – a dozen separate matrices of all the loan parameters for each and every lender – especially when they’re prone to changing so often.) 2.) The two keys to all hard money loans are the value of the underlying collateral and the borrower’s exit strategy – followed closely by the borrower’s general business acumen and relevant business experience. |
| Note #1 | One lender allows a 25% LTV seller-held 2nd mortgage, in addition to their 65% LTV 1st mortgage, for a Combined LTV of up to 95%. of |
| Note #2 | Most interest rates fall between 12% – 14%. |
| Note #3 | Most terms fall between 6 months – 2 years. |
| Note #4 | Some hard-money lenders do not look at the DSCR at all, and some have varying requirements for the DSCR, ranging from 1.00 to 1.25. |
| Note #5 | Some lenders require a 600 or higher credit score, others will accept credit scores in the low 500s or high 400s and some are more concerned about the credit report (to see whether there are tax liens, judgments, and other major credit problems that could affect title) than the credit score itself. |
| Note #6 | Some lenders have a PPP; some don’t. Please see ‘PrePayment Penalty: Subsidy’ |
| Note #7 | Most lenders don’t have lock-outs, but a few have lock-out periods of 6 months. |
| Note #8 | Most lenders don’t have exit fees; some do. |
| Note #9 | Lenders require personal guarantees as often as not |
| Note #10 | Most lender points fall between 3 – 6 points. (Hard money lenders sell their “paper” [the resulting mortgage & note] to an investor who, due to the inherently high risk of these loans, requires a high return, often 15% or more. Rather than charge a high enough interest rate to produce that return, they usually make up the difference by taking as much as half of the lender’s points. |
| Note #11 | Most hard money lenders will not fund land, environmental properties (gas stations, dry cleaners, etc.) or churches – although 1 or 2 of our lenders will. |
| Note #12 | Some lenders will fund deals throughout the US; others, only in certain regions or states; and, a couple of others will fund deals in foreign countries (Canada, Mexico and many South American countries) – generally for higher minimum loan amounts ($5 – $10 million), rates and points, as well as lower LTVs. |