Frequently Asked Questions

We understand that every client's situation is unique

• 1.  What constitutes a hard money loan, and how does it contrast with a conventional loan?

  A hard money loan is a real estate-backed loan that uses private funds and generally has a shorter duration and higher interest rates than traditional loans. At FastPrivateFunds, we manage our own pool of investors’ funds, enabling us to make quick decisions and provide financing within days.

• 2.  What types of properties can be financed with hard money loans?

  Hard money loans are typically used for investment properties such as fix-and-flip projects, rental properties, or commercial real estate. Eligible properties include single-family homes, multi-family units, office buildings, retail spaces, hotels, and industrial properties.

• 3.  What is the maximum amount I can borrow through a hard money loan?

  The loan amount you can secure with a hard money loan depends on the value of the property being used as collateral. Lenders usually offer up to 70% of the property’s value, although some may provide higher or lower loan-to-value ratios based on the property’s worth and the borrower’s credit profile.

• 4.  What are the standard terms for a hard money loan?

  Hard money loans typically have terms ranging from six to 24 months, though some lenders might offer terms up to 36 months. Interest rates can vary between 7% to 16% or higher, and a balloon payment might be required at the end of the loan term.

• 5.  How do I apply for a hard money loan?

  The application process begins with completing a loan application and submitting necessary documents, such as a credit report, property income details, title report, and property valuation. Our underwriting department then reviews the documentation and advises our loan committee for the final decision.

• 6.  Can I refinance my existing mortgage with a hard money loan?

  Yes, some lenders provide hard money refinance loans that let you refinance your current mortgage using the equity in your property. These loans often have higher interest rates than conventional refinance loans and might take longer to process.

• 7.  What are the consequences if I fail to repay a hard money loan?

  If you fail to meet the obligations of a hard money loan, you could face state-specific default and foreclosure procedures related to the property’s location. It’s crucial to carefully assess these risks and establish a robust exit plan when securing a hard money loan. We’re available to assist you with both aspects.

• 8.  How fast can I get funded with a hard money loan?

  Hard money loans can be funded much quicker than traditional loans, often within a few days or weeks. Our streamlined application and approval process, along with in-house underwriting and processing, contribute to the speedier funding.

• 9.  What benefits come with utilizing a hard money loan?

  Benefits of hard money loans include quick access to capital, flexibility in loan use for different property types, potential for higher returns on investment properties, raising equity, and increasing liquidity.

• 10.  What key qualities should I seek in a hard money lender?

  When choosing a hard money lender, look for one with a solid reputation, competitive interest rates and fees, and experience in lending for your specific property type. Avoid lenders with too-good-to-be-true offers; instead, select one with a proven track record and clear terms. Understand the loan terms thoroughly and ask any questions before signing.