A hard money construction loan is a short-term loan secured by real estate. Borrowers use such loan for new construction or renovation of a property. Including 100% of the acquisition of the real estate parcel and repair costs, hard money lenders offer many other benefits to borrowers that banks cannot.
Here are the key features of obtaining a hard money construction loan:
- 100% funding of vertical construction costs
- Accept approx all property types
- Up to 75% ACV (after constructed value)
- Land + new construction loan options available
- 6 to 24 months terms
- No penalty on prepayments
- Interest rate between 8% to 14%
- Only 2% to 6% origination fee per transaction
- Transaction Size $500,000 to $50,000,000
- Maximum 10 business days to close
- Foreign nationals are welcome
- No minimum credit score required
- Only pay interest on funds received
The Bottom Line:
Hard money construction loans provide the ability to borrowers to obtain funding at a much faster rate than a bank loan. The loan flexibility and speed of hard money construction loans are significant advantages for a real estate investor. Especially when they are trying to complete construction or renovation works quickly in order to sell the property for profits.
For more information on our loan programs or to inquire about a hard money construction loan, please feel free to contact Magna Capital Group, Inc. today at (310) 734 4044 or email at firstname.lastname@example.org. We provide construction loans for all types of commercial and residential properties at the most affordable interest rate.