(Winfield KS) -If you’re here researching how to locate Hard Money Lenders in Winfield KS then you are likely looking for Kansas hard money loans and are looking for private money lenders that offer swift funding decisions on both residential and commercial real estate loans throughout the U.S. There are a few things to examine when getting a hard money loan. For example, is the loan company a direct lender? Top Hard Money Lenders Winfield KS are often direct private money lenders that are able to underwrite in-house and fund loans quickly.
Hard Money Lenders Fund Commercial Real Estate Loans
Collateral considered by Winfield KS private mortgage lenders for commercial real estate loans include: retail, offices, warehouse, industrial space, shopping centers, mixed-use and hotels. Lenders consider the equity in the collateral and its value in a quick sale. Direct private lenders charge an origination fee between 2% to 4%, interest rates between 10% to 15% APR for a term of 6-24 months. Equity investments typically range from $2 to $20 million.
Private Money Lenders Fund Residential Loans
Common loans for private money lenders in Winfield KS are residential real estate hard money loans on 1 – 4 unit residential properties or small apartment buildings. Because many borrowers cannot qualify for a conventional loan due to credit issues, income or property type private loan companies help fill this credit need. A private lender also works with real estate investors, brokers and companies to arrange refinancing and fund loans with difficult circumstances that would be impossible as a conventional loan. Some Kansas private lenders offer LTV’s (loan to value ratio) on residential hard money loans up to 90% of the purchase price based on borrower and property specifics. Loan amounts can range from $50K to $20MM with a standard term of 6 to 24 months. Hard money lenders must confirm a borrower’s “ability to repay”, per the 2010 Dodd-Frank Act for all residential property loans. Therefore, KS private money lenders are required to request income documentation. The documentation need not be as rigid as for a conventional loan and the lender has some discretion with a hard money loan.
Private Lenders Finance Rehabs and Fix & Flip’s
Residential fix & flip developers are successfully upgrading America. Private lenders in Kansas assist these developers fund new opportunities by providing quick assessment primarily based on the equity available. For residential rehabs or fix and flips, the loan to value is up to 90% of the purchase price and up to 70% of After Repair Value of the property.
What is the Hard Money Loan Qualification Process?
You should be aware that the qualification process for a hard money loan is different than for a conventional loan. Kansas Hard money lenders set individual loan guidelines that are unique for each borrower and property. Below is a list of documents you need for loan consideration:
- Investor Application
- Long-form for 1st time borrowers
- Short-form for returning borrowers or equity partner
- Credit Score:
- Sign a release to obtain and verify the credit score
- Income Verification
- Bank Statements: Copies of last 3-months statements
- Tax Returns: Returns for last 2-years
- Paystubs: 3 most recent pay periods
- Background Check:
- A release is required to obtain a background check of each potential borrower or equity partner
- Bankruptcy/Foreclosure:
- If you have a bankruptcy or foreclosure be transparent and open about it with the lender
- Hard Money lenders are familiar with negative credit circumstances and in certain cases they can be overlooked
- Be able to provide additional financial information as needed or as requested in application.
Who Needs a Private Money Lender’s Services?
Below is a list of individuals and entities that are likely to need the services of a private lender :
Individuals
- Corporations
- LLC’s
- Partnerships
- Trusts
- Estates
Individuals should be prepared with their most recent 2-yrs tax returns. In addition to tax returns, entities should have their Articles of Organization & Operating Agreement available. Be sure that your entity is in ‘active’ status with the state Secretary of State in Kansas.
Loan Requirements, Documentation & Fees
Below are loan requirements, documentation and fees to plan for and consider with you loan request:
- Property Type:
- 1-4 residential property & smaller apartment buildings
- Lien Position:
- First mortgage or deed only
- Guarantee:
- Corporate and personal guarantees from borrower(s) are required
- Origination Fee:
- 2% to 4% based on borrower and property specifics
- Loan to Value:
- Up to 90% on purchase price
- Up to 70% on After Repair Value
- Interest Only Loans
- 10% – 15% APR based on borrower(s) track record & property specifics
- Standard Term:
- Loan term is 6-24 months
- Prepayment Penalty – Minimum 6-months interest payments required
- Extensions- loan term extensions are available. Fees apply.
- After-Repair-Value-Appraisal:
- No older than 2 months or new appraisal needed
- Pictures of Rehab Property
- Property inspection and insurance policy
- Loan Documents:
- Drafting fee usually $1,000-$1,500 required from borrower
- Third Party Fees:
- usually include title policy, recording, survey, etc. & paid by borrower
Where to Find a Winfield KS Hard Money Lender?
RAA Capital, located in Las Vegas is a direct private lender that arranges hard money loan needs in Winfield KS and across the U.S..
For a Free Consultation Call Us At: (415) 933-4610
| We are located at: RAA Capital 3225 McLeod Drive Suite 100 Las Vegas, NV 89121 |