How much paperwork is required? – We have a very small package that is needed to get started. Application, Property Details, Your experience.
How fast can we close? – We strive to close in a short amount of time, but there are several variables that will drive this, such as inspections, documentation, availability of all parties involved, etc…
Can I get a pre-approval letter? – Yes, we can issue a pre-approval letter.
How much can I borrow? – We can work on SFR up to $3 million and there is no maximum on multifamily properties.
Are Owner Occupant Loans available? – No. Hard money lenders lend for both residential and commercial properties, although they almost never lend money for owner-occupied properties or properties being used for personal or household use. Hard money loans are designed for distressed properties and are used by investors looking to buy and renovate, either to flip or refinance and keep as a rental.
What States does LSG Funding lend in? –
Does LSG Funding make the loans? – NO, we are the broker that works with you preparing your project’s documents. Our Capital Partners will be making the loan for your project.
How is my Loan Rate determined? – Your rate depends upon a number of things, including the value of your collateral, the applicant’s experience, applicant’s credit score etc… No rate information will be provided nor guaranteed until the Partner that is funding the loan has made their final decision.
What will LSG Funding loan on? – We will cover up to 90% of LTV and 100% of the Rehab costs. The Rehab fund draws are made in advance. First draw is at closing.
How is the Loan amount determined? – The loan amount is determined by the ratio of loan amount divided by the value of the property. This is known as the loan to value (LTV). Many hard money lenders will lend up to 65–75% of the current value of the property. What is most important to the lender is the loan-to-value (LTV) ratio. The LTV is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. Most lenders will require 10% to 15% down payment of purchase cost while financing 100% of the rehab cost. Lenders that do not require a down payment usually fund at an ARV of 70%. The ARV is the after repair value and is what a home is worth after it is fully repaired. If a home’s ARV is $200,000 and it needs $25,000 in repairs, then the 70 percent rule states the lender will finance up to $115,000. ($200,000 x 70% = 140,000 – $25,000 = $115,000.)[
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