Hard Money Lender Miami

How to find the lowest rate for a Hard Money lender in Miami (2024 Update)

Miami Hard Money Lending Parameters (2024 Update):

CAPITAL FUNDING FINANCIAL’S LENDING PROGRAMS FOR MIAMI, FL (UPDATED 2024):

If “Speed and Certainty of Closing” is what you need then our “Hard Money Program” is the best option.

Features/Requirements of the “Hard Money Program”

• Loan Amount: Up to 65% Loan to Value 
• Term: 12 Months (longer terms by exception)
• Rate: 9.99% – 11.99% Interest Only
• Origination Fee: 2.00+ pts (based on credit experience, ltv, risk)
• Loan Size: $100,000 – $25 Million
• Valuation Method: Quick BPO, Inspection, or Appraisal
• No Minimum Credit Score!
• No Tax Returns or Income Documentation Required!
• Foreign National Acceptable!
• No Debt Service Requirement!
• No Experience Needed!
• 7 to 10 Day Closing Timeline (exceptions made for faster closings)
• Can Close in an Individual Name or Entity
• Cross-Collateralization accepted 
• Seller Seconds Allowed

If obtaining the “Highest Leverage” is what you are looking for then our “Bridge / Fix and Flip Program” is the best option:

Features/Requirements of the “Bridge / Fix and Flip Program”

• Loan Amount: Up to 90% Total Loan to Cost or 75% Loan to Value
• Renovation: 100% of the Renovation can be funded | Max 90% Total LTC 
• Term: 12 Months (longer terms by exception)
• Rate: 9.75% – 12.50% Interest Only
• Origination Fee: 2.00+ pts (based on credit experience, ltv, risk)
• Loan Size: $100,000 – $7.5 Million
• Valuation Method: Appraisal
• 680 Minimum Credit Score (exceptions granted to 620)
• Foreign National Acceptable!
• No Debt Service Requirement or Rental Income Needed!
• 21 to 28 Day Closing Timeline (exceptions made for faster closings)
• Close in an Entity
• Single Family and Multifamily Loans Accepted

If obtaining the “Lowest Rate” is what you are looking for then our “Rental/DSCR Program” is the best option:

Features/Requirements of the “Rental / DSCR Program”

• Loan Amount: Up to 80% Loan to Value 
• Term: 30 Years
• Rate: 6.50% – 8.50% (Fixed or Interest Only)
• Amortization: 3/1 ARM, 5/1 ARM, 10/1 ARM, 30 Year Fixed Options
• Origination Fee: 1.50 – 2.50 pts (based on credit experience, ltv, risk)
• Loan Size: $100,000 – $7.5 Million
• Valuation Method: Appraisal
• 660 Minimum Credit Score (exceptions granted to 620) 
• Foreign National Acceptable!
• Debt Service Required (Ranging from .75 to 1.10 based on pricing)
• No Experience Needed!
• 21 – 28 Day Closing Timeline
• Close in an Entity
• Short Term Rentals allowed with Track Record
• Vacant Properties allowed by using Market Rent
• Portfolio Loans Available
• Single Family and Multifamily Loans Accepted

If you are looking for financing for a “Ground Up Construction Project” then our “Ground Up Construction Program” is the best option:

Features/Requirements of the “Ground Up Construction Program”

• 12, 18, or 24 Month Term
• Single Family, Multi-family, and Commercial (case by case exceptions)
• Up to 85% LTC | 65% – 70% LT-ARV 
• No Interest Charged on Undrawn Funds
• Rate = 10.99% – 12.99% 
• Origination Fee = 2.00 – 3.00 pts (based on credit experience, ltv, loan size)
• Minimum loan amount of $500k – Max of $50M (exceptions for higher amounts)
• 21 -28 Business Day Closing Timeline
• Must close in an Entity  

If you are looking for financing for a “Commercial Loan” then our “Commercial Loan Program” is the best option:

Features of the Commercial Bridge Program:

• 12, 18, or 24 Month Term
• Up to 75% LTV
• Office, Retail, Storage, Industrial, Multi-family, others
• No DSCR required = Great fit for un-stabilized commercial properties
• Rate = 10.99% – 13.99% 
• Origination Fee = 2.00 – 3.00 pts (based on credit experience, ltv, loan size)
• Minimum loan amount of $500k – Max of $25M (exceptions for higher amounts)
• 21 Business Day Closing Timeline
• Must close in an Entity

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Miami Hard Money Loan

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CALL US TODAY FOR A QUICK PRE-APPROVAL: 954-320-0242

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What is hard money loan?

A hard money loan is a loan given to a borrower from a lender based mainly on the worth of the asset that is collateralized that is underlying. Where asset based lenders aka hard money lenders focus primarily on the value of the asset being used as collateral for the loan traditional banks and lenders focus mainly on the credit and income of the borrower. Where conventional loans are usually for 15–20 year terms, hard money loans are used as a short term option (1–3 years usually) as a bridge to acquire a rehab, or stabilize a commercial, retail, office, industrial, multi–family, or single family residential home.

Why exactly would a real estate investor in Miami pick a hard money loan (asset–based loan) over a conventional loan provided by a bank with lower rates?

There are many reasons why a borrower would choose to use private financing or a hard money loan over a more affordable traditional financing: (1) Quick Funding– traditional banks take a minimum of 45 days to fund just one family residential loan, any where between 60–90 days to finance a commercial loan, and over 120 days to fund a development loan. Whereas, a hard money loan is typically financed within 7–14 days. (2) Property Needs Work– because of the conventional bank‘s very conservative underwriting guidelines, most will not lend on properties needing repair. However, a private lender will be happy to loan on a property that either lacks cash flow or necessitates physical developments so long as the borrower has enough “skin in the game” (equity). Before it can be used for instance, banks really rarely finance a loan secured by a property in need of repairs; so the borrower will use a hard money lender to buy and rehabilitate the property, and then settlement the hard money loan with normal financing. Another example would be a commercial property that has no tenants… a bank won’t loan until the property is leased up. However, temporary financing will be provided by an exclusive lender to the borrower to purchase the property and lease it up. Once the property is stabilized for a particular time period, the hard money loan will be refinanced by a commercial lender with normal lending. (3) Not based entirely on credit or income– Traditional banks rely greatly on a borrower’s credit score, previous income, and ability to repay the debt. So quality borrowers like physicians, lawyers, and attorneys who have high incomes but also have lots of debt are turned down by traditional banks for conventional lending. So, there is certainly an enormous importance of private lenders who look the value of the underlying asset in comparison with the amount of the loan versus the borrower’s credit history. At Capital Funding Financial, we base our capital decision mainly on the LTV (loan to value). We look for a 65% – 80% LTV in our loans at Capital Funding Financial. 

What are the interest rates involved in hard money loans in Miami?

 The rate by the lender is determined by taking a look at a mix of factors such as: (1) loan to value ratio, (2) borrower’s credit score & income, (3) the property condition and location, (4) borrower’s “skin in the game” (amount of cash equity in the property). At Capital Funding Financial we offer the lowest rates around starting at 6.99%*

What are the fees associated with asset based lending?

Hard money lenders charge financing origination fee of 3% to 5% of the loan amount. Various fees for file preparation will subsequently charge by a lawyer, an application fee, assessment fee from an unbiased appraiser, and a loan processing fee. Capital Funding Financial charges a low origination fee starting at 1.50%* without all the concealed junk fees!

Can the loan fees be paid from the loan proceeds?

Yes, so long as there’s a huge enough equity cushion in the real estate. Most of the time all of the fees (besides the application fee) are paid in the actual loan earnings.

Can there be a prepayment penalty with hard money loans?

Ordinarily hard money lenders in Miami Florida implement a 3–6 month minimum interest requirement. For instance, with a 6 pre-payment fee, if the borrower should happen to repay the loan in 3 months, there would be 3 additional months of interest due. This condition is put in place so that the lender receives a little yield for the time, hassle and apportionment of its funds to some borrower. If the borrower repays the loan after six months, then no prepayment penalty will be issued. Capital Funding Financial offers hard money loans in Miami with No Prepayment penalties!

How fast can a Miami hard money loan close?

At Capital Funding Financial, we’re a direct lender and have the ability to close loans within a few days when given a complete loan package (credit report, BPO or appraisal, and title commitment). The typical deal takes about 1 to 2 weeks to fund as an independent appraisal and title report need to be run on the property.

When is an appraisal required versus a broker price opinion?

For hard money loans, Capital Funding Financial accepts another lender’s appraisal as well as a broker price opinion.  A new appraisal will only be required when there is renovation involved.

When finishing flip or rehabilitation project & a fix, what’ll the hard money lender require?

The lender will want to see the extent of work described with a cost analysis timeline and worksheet. The lender uses this as helpful tips in releasing capital for rehabilitation purposes. Nothing ever goes as planned when performing a rehab; consequently the lender will want to find the borrowers experience in performing or managing real estate repairs. The lender require an inspection to be made after each draw is complete and will release funds in draws for such listed repairs. The lender may also require income statement and a credit report in the borrower to show that the borrower has the ability to repay the loan. Yet, hard money lenders focus primarily on the asset value of the security and never the credit score. At Capital Funding Financial we offer a fix and flip program for higher leverage requests up to 90% LTC and 75% of the ARV with 100% of the rehab funds included! 

So if you are looking for a hard money loan for a rehab, fix & flip, or investment purpose, contact us today at 954-320-0242 or visit Hard Money Loan for more info.

Capital Funding Financial Mortgage Notes:

Miami Florida Hard Money Lender | Miami, Florida