FAQs for Hilton Head, SC - Hard Money Loans
1. What is a Hard Money Loan?
A Hard Money Loan is a mortgage funded by large institutional private investors, catering specifically to Real Estate Investors purchasing Investment Properties. Unlike Conventional Financing, it doesn't require job history or debt-to-income requirements, focusing instead on the property's ability to cover the mortgage.
2. Are there upfront costs with a Hard Money Loan?
No. Upfront fees, except for large commercial loans, are not part of our lending model. Typically, the only out-of-pocket expense is the cost of the appraisal, paid directly to the appraisal company.
3. How are Short Term Rental property loans underwritten?
We underwrite Short Term Rental properties based on their projected annual income, utilizing specialized software to assess income potential and calculate the property's ability to support the mortgage. For a free property analysis, contact Andrew at (954) 598-4564.
4. Can you help with bad credit?
Yes, we can finance Rental Loans down to a 600 credit score at 70% Loan To Value, and for fix and flip loans, we can go up to 90% of purchase and 100% of rehab cost, also down to a 600 credit score. The reason for the low credit score may impact loan availability.
5. Do you provide DSCR Loans?
Yes, we offer Debt Service Coverage Ratio (DSCR) Loans, assessing the property's ability to pay the mortgage monthly. While a DSCR of at least 1.0 is generally preferred, for strong borrowers, we can go down to .75 DSCR at lower leverage, and we also have no DSCR programs, although the rate tends to be higher.
6. Can you finance Non-Warrantable Condos or Condotels?
Yes, we can finance Non-Warrantable Condos or Condotels, although the maximum leverage may be slightly reduced.
7. Do you lend on Owner Occupied Properties?
No, we strictly provide loans for Non-Owner Occupied Investment Properties, unless it is a Commercial Property. For home purchases, contact a conventional NMLS licensed mortgage broker.
8. Do Hard Money Loans show up on my credit report?
No, Hard Money Loans do not report on your credit. Additionally, there's no limit on the number of loans we provide, and they won't appear on your credit report.
9. How long does it take to close a loan?
Generally, a DSCR/Rental Loan takes 30 days to close, including awaiting the appraisal. Fix and flip loans take an average of up to 21 days, with some closing in as fast as 3 business days if title and insurance are complete.
10. What is your minimum and maximum loan amount?
Our minimum loan amount is $75,000, and our maximum loan amount exceeds $10 Million.
Have additional questions? Email us at andrew@optimuscapitalcorp.com or call (843)212-8548.