Frequently Asked Questions

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 A hard money loan is a short-term, asset-based loan secured by real estate. Unlike traditional bank financing that underwrites based on borrower credit and income, hard money lenders underwrite primarily on the value of the collateral property and the exit strategy.

• Terms: 6–18 months
• LTV: 65–75% of “as-is” value
• Rates & Fees: Typically 10–14% interest + 1–3 points origination
• Use Case: Fix-and-flip, land acquisitions, distressed buys

 DSCR lending qualifies the borrower based on the property’s cash flow rather than personal income.

1. Calculate Debt Service Coverage Ratio:
   DSCR= Net Operating Income (NOI)Annual Debt Service DSCR=Annual Debt ServiceNet Operating Income (NOI)​
2. Minimum Threshold: Lenders generally require DSCR ≥ 1.05, meaning NOI is at least 25% above your annual debt payments.
3. LTV & Reserves: Up to 80% LTV on purchase or refinance; 3 months of P&I reserves often required.
4. Ideal For: Buy-and-hold rental properties, mid-term rentals, small multifamily

 Also called “flash funding,” transactional funding provides same-day capital to close a purchase and immediately sell or refinance. The loan lifespan is typically 24–48 hours.

• EMD Funding
• Stack Method (Morby Method)
• Double-Close 
• Cost: 0.5–2% fee on loan amount

• For Hard Money:
  • ARV (After-Repair Value) 
  • Detailed rehab budget
  • Exit strategy (sale, refinance)
• For DSCR:
  • Rent roll or market comps for projected NOI
  • Property expenses (taxes, insurance, maintenance)
  • Three months of P&I reserves
• For Transactional Funding:
  • Purchase contract & assignment agreement
  • Proof of resale contract
  • Title commitment showing smooth transfer

• Hard Money: 7–10 business days once file is complete
• DSCR Loans: 10–15 business days (appraisal & docs)
• Transactional Funding: Same day / next-day funding 

• Origination Points: 1–3 points for hard money; 0.5–1.5 points for DSCR
• Appraisal & Due Diligence: Typically $500–$1,000. (Case by case )
• Title & Closing: ~2% of loan amount
• Reserves: DSCR loans require 3 months P&I cash reserve 

Yes. For instance, you might:

• Bridge Fund a property to secure purchase.
• Flip/Value-add to boost ARV.
• Refinance into a DSCR loan for long-term hold with no money down. 

• Property Info: Address, purchase price, ARV estimate
• Rehab Scope: Budget & timeline (hard money)
• Income Docs: Rent roll or market rent comps (DSCR)
• Reserves Proof: Bank statements showing required reserves
• Transaction Contracts: Purchase & resale agreements (transactional) 

1. Deal Snapshot: Fill out our brief online form with property and financing details.
2. Pre-Approval: We’ll run your numbers and issue a pre-approval letter within 1–2 business days.
3. Lock & Close: Sign docs electronically; we close on the timeline you need—often in under a week.