What is a hard money loan?+
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued by private investors or companies. Interest rates are higher than conventional loans because of the ease of funding and shorter term duration of the hard money loan. Most hard money loans are used for projects lasting from a few months to a few years. Real estate investors use hard money when they are unable to or do not have time to obtain financing from more conventional sources. Typically their financials are complicated or can show losses which get caught up in underwriting at banks and financial institutions
How do I get pre-qualified for a hard money loan with Louie Loans?+
It’s really simple. All you have to do is click on Loan Application. Fill out the required information completely including approximate credit score and funds available. Available funds may include cash on-hand, credit lines, maturing CDs, and stock accounts with borrowing power. Not included would be small balance credit cards, IRAs, retirement accounts, and other people’s money unless they plan on being a co-borrower.
Once you submit an application, you’ll be given instruction via email and on the site for next steps. Upon approval, you will be given a “Letter of Credit.” This letter in most cases will be treated the same as cash.
What is
Louie Loans looking for when considering my application?
+We will review your ability to repay, cash reserves, the area in which you plan to invest, and also your experience level. Experience is good but not necessary. Louie Loans is constantly finding and helping new clients so first-time investors are encouraged to apply!
Do you provide a “letter of credit?+
Yes! Upon review of the application, a general letter of credit will be issued to those who qualify. However, this is not a commitment to fund.
What are your terms?+
Louie Loans has different loan programs to help investors in a multitude of projects ranging from your standard flips and rehabs to new construction loans.
Costs and fees will vary depending on the program.
What States do you fund in?+
California only
How long does it take to close the loan?+
Loans can close in as little as 5 business days assuming we have all documentation signed correctly and returned in a timely manner. Lead times may vary by loan program (longer term and construction typically take longer).
What types of property do you fund?+
Louie Loans specializes in non-owner occupied residential, single-family properties from 1-4 units. Our programs range from a standard fix and flip to buy to hold as rentals to new construction. We also lend on commercial properties.
What if I have a bad credit score?+
If you have a low FICO score, Louie Loans may still fund your loan but may need you to come up with more cash down to lower our loan-to-value.
Can I live in the house during the course of the loan?+
No. Louie Loans only funds non-owner occupied inventory. You will be signing loan docs that state you will not be living in the property
Are there prepayment penalties?+
No. There are no prepayment penalties.
Will Realtors know what hard money is?+
Most realtors are familiar with letters of credit from hard money lenders. If for some reason you have trouble, have the agent call our office during regular business hours.
What if I have a foreclosure on my record?+
The loan can still be funded
