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How Do I Qualify for a Hard Money Loan?

Are you wondering how to qualify for a hard money loan and what requirements you will need in order to get your loan submission to the finish line? If so, below are some helpful tips which may be useful.

A Hard Money Loan is a Financial Commitment

There’s a reason they call it a hard money loan—getting this type of financing comes with higher costs than a traditional bank loan. In order to qualify for a hard money loan, you should expect to have a substantial down payment (30-50%) for a real estate purchase or have significant equity in your property for a refinance.

Depending on the size of your hard money loan and other various factors, you can expect to pay between 2% and 7% of the loan amount in lender fees. Because you’re expected to pay off these loans quickly, the interest rate is also higher, usually in the 7% to 15% range.

Sometimes hard money loans can also have pre-payment penalties, which guarantees the lender a certain amount of interest during the life of the loan. For example, if you pay off your loan quickly, sometimes lenders will require a pre-payment penalty to make sure they receive a minimum amount of interest, as they would prefer to have the loan for a longer period of time than being paid off early.

Finding the Right Lender

Even with the above in mind, remember that the terms of your hard money loan will largely depend on the lender you choose to work with. Different hard money lenders have different underwriting requirements. Nonetheless, transparency is extremely important when you’re searching for a hard money lender. Make sure to choose a reputable and experienced lender with a long track record of funding hard money loans.

How Do I Qualify for a Hard Money Loan
How Do I Qualify for a Hard Money Loan

Less Upfront Hurdles with a Hard Money Loan

Hard money loans are usually more favorable among seasoned real estate investors and developers because of less underwriting requirements. Even if you’ve made some poor financial decisions in the past and have a low credit score, you may still be able to receive a hard money loan. Hard money lenders pay more attention to the value of your property than your credit history, as the more equity you have in your property will give the lender more confidence that they will be paid back.

Get Approved Quickly with Wilshire Quinn

If you’re looking for an experienced hard money lender to fund your next real estate transaction, you should contact Wilshire Quinn. We expedite the lending process so that you can receive financing in a matter of days. To inquire about rates or begin the application process, you can contact us at 619-872-6000 or by visiting www.wilshirequinn.com

  • Funding typically in 5-7 business days
  • Loan Amounts from $200,000 to $20,000,000

  • Interest Rates from 8% to 10.5%
  • Loan Term: 3 – 24 months

  • Commercial & Residential (non-owner occupied) Real Estate

  • Purchase, Refinance, Cash-out Refinance, Rehab, Blanket Loans
  • Foreign National Loans Available

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About Wilshire Quinn

Wilshire Quinn is a San Diego hard money lender focused on short term bridge loans, secured by first trust deeds. The company is based in San Diego, CA with offices in Los Angeles and San Francisco. Wilshire Quinn typically funds loans for their customers in 5-7 days. Their successful track record is closely linked to their ability to make immediate lending decisions based on their highly disciplined underwriting approach. The company funds a variety of loans such as: refinance, purchase, blanket, rehab loans, 1031 exchange, partnership buyouts, and more. They originate hard money loans ranging from $200,000 – $20,000,000. Wilshire Quinn works with commercial and residential buyers nationwide.

Recently Funded Hard Money Loan Transactions

San Diego hard money lender - private money lender
El Monte, CA

Loan Amount: $4,750,000
Loan Type:  Refinance
Property Type:  Industrial
Loan-To-Value: 60%
Term: 12 Months

hard-money-loan-losangeles-deal-3.16.18
San Diego, CA.

Loan Amount: $765,000
Loan Type:  Refinance
Property Type: Single Family
Loan-To-Value: 60%
Term: 12 Months

los angeles hard money lender santa monica deal
Santa Monica, CA
Newport Beach, CA

Loan Amount: $3,725,000
Loan Type:  Purchase / Rehab / Blanket
Property Type: Single Family
Loan-To-Value: 45%
Term: 12 Months

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2020-11-26T08:26:13+00:00
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