Primarily in the state of Oregon but we also close loans in Washington, California and Idaho. We buy notes, contracts and other financial instruments nationwide.

Loan fees for Hard Money Loans range from 2% to 5% of the loan amount and are paid at the closing of the loan. Escrow, title and recording fees generally range from $700 to $2500 depending on the loan amount.

We are property-centric so the loan risk based on the equity position in the property is the primary factor but credit is evaluated. Today, Hard Money Lenders see an increase in applications from more credit-worthy borrowers because there are fewer loan alternatives in the marketplace. Consequently, it certainly helps to have good credit but we are flexible in our underwriting practices and derogatory credit can be mitigated by others factors. If the repayment scenario is to eventually refinance, then sufficient credit is necessary.

We mainly look at the market value of the property and the repayment scenario, i.e. how the borrower plans to pay back the loan. Our loan to value ratios are lower than bank loans to mitigate risk. Obviously there needs to be a source to make monthly payments, whether it’s from the rents generated by the property or the borrower directly. Since most of our loans have a balloon payment, we evaluate how the borrower plans on making it, whether from an eventual sale or refinance of the property. We typically do not require all of the income and asset documentation that banks or conventional lenders require.

Usually we do an in-house appraisal rather than require the borrower to pay for a fee appraisal. A fee appraisal might be required in a situation where our perceived loan to value ratio is high, or if the property is unique and there aren’t many comparable sales records available. Also, most construction loans require an appraisal.