Rehab and Construction Loans Hard Money Loans
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Hard Money Acquisition & Construction Loans
For developers, sub-dividers & contractors, we can provide
acquisition & construction financing based on the future
value Construction to Permanent of the property.
We provide both bank construction financing and private hard
money construction loans.
Nearly all building and development begins with the purchase of raw land. In the current
environment, many lending sources will not make loans on raw, undeveloped land. We can
help you purchase, construct and develop land for residential sub-division or commercial or
industrial use.
We will work to get you the highest possible Loan-to-Value ratio on your land collateral. We
welcome inquiries from land owners and residential and commercial developers.
Residential 1 - 4 Family, investor properties, condo
conversions and small apartment buildings considered
on a case by case basis.
LIEN POSITION: First mortgage only.
STANDARD TERM: 6 months with monthly extensions up to 13 months.
ADVANCE RATE: 85% to 100% financing of the total project cost, plus
interest, points and closing costs can be financed to reduce funds required at
closing. Will loan up to 75% of the After-Repaired-Value.
RENOVATION
FUNDS: Renovation funds are usually advanced in one to three draws, and
wired directly to your account. Rehab portion of the loan typically not to exceed
150% of acquisition cost unless otherwise approved.
INTEREST: No payments for up to six months. Borrower may finance interest
in loan proceeds at closing.
POINTS: Points can be rolled into loan balance at closing and may be partially
rebated upon early payoff. Points may vary if borrower qualifies for one of Cohen
Financial Group "Line of Credit" programs.
CLOSING COSTS : Up to $1200 of closing costs (i.e. title insurance, recording
fees, etc.) can be financed as part of the loan proceeds.
GUARANTEE: Personal guarantee required.
QUALIFYING DOCUMENTS : Completed Rehab Loan Application including:
(i) Two years of Tax Returns (both personal and business)
(ii) Three months of Bank Statements (both personal and business)
(iii) Current statements supporting liquid assets
(iv) Credit report (obtained by Lender)
LOAN DOCUMENTATION:
(For Each Loan) Purchase Agreement
Summary of Rehab Work to be completed
Builders Risk Insurance (will not closed deal without insurance)
After-Repair-Value Appraisal (Obtained by Lender)
Title Policy (Obtained by Cohen Financial Group)
QUICK FUNDING: Once a borrower has been approved, funding of individual
transactions is typically within two weeks. No need to reapply for subsequent
transactions.
General Terms: Commercial Projects
New Construction Loans: CFG will price these loans on a deal by deal basis.
For new construction and land development loans, the borrower will be required
to bring 10% of the loan amount to closing. CFG offers rates for these type of
projects ranging from 6 to 8 Points and 12-15% Interest with no monthly payments.
CFG's will range from 50-75% depending on parameters such as credit score, down
payment amount, loan duration desired, borrower's experience, and exit strategy.
Commercial Loans: CFG will price these loans on a deal by deal basis. For new construction
and land development loans, the borrower will be required to bring 10% of the loan amount to
closing. CFG offers rates for these type of projects ranging from 6 to 8 Points and 12-15%
Interest with no monthly payments. LTV's will range from 50-75% depending on parameters
such as credit score, down payment amount, loan duration desired, borrower's experience, and
exit strategy.
Land Development Loans: CFG will price these loans on a deal by deal basis. For new
construction and land development loans, the borrower will be required to bring 10% of the loan
amount to closing. CFG offers rates for these type of projects ranging from 6 to 8 Points and 12-
15% Interest with no monthly payments. LTV's will range from 50-75% depending on
parameters such as credit score, down payment amount, loan duration desired, borrower's
experience, and exit strategy.
Information Required
An Executive Summary is an essential document for us to have since it will give us your
summary of all the information in the deal and why you think it is a good profitable deal. It
should include the following at a minimum: Purchase price of the property, Construction costs,
Closing Costs required, Term of Loan Needed, Borrower Experience, Exit Strategy, Borrower
Credit Score, Borrower Annual Income, Estimated Appraised Value - As Is & After Improved.
Please email your executive summary to info@equitydevelopmentcorp.com.
Points and Interest Rates
CFG will price these loans on a deal by deal basis. CFG offers rates for these type of projects
ranging from 6 to 8 Points and 12-15% Interest with no monthly payments. LTV's will range from
50-65% depending on parameters such as credit score, down payment amount, loan duration
desired, borrower's experience, and exit strategy.
Duration of Loans
The term of the loan can be from 6 months to as long as 18 months and will be negotiated on a
case by case basis.
Loan Amount
CFG has no maximum loan amount but we do prefer for each deal to be at least a $500K loan
amount.
Loan to Value (LTV)
The max loan to value (LTV) CFG will loan is 50-65% LTV, which is based on the completed
value (ARV) of the property. The LTV calculation will include the purchase price, construction
costs, purchase closing costs, points, and an interest reserve for the term of the loan.
General parameters for hard money acquisition and construction loans are 85% of the finished
value of the project when built. For bank financing, the loan amount can be up to 100% of the
value of the property, however, credit and income become factors for obtaining bank financing
when they are not considered in hard money financing, where only the value of the property is
considered. If you have strong credit we can get you approved for a bank construction loan. If
you prefer a fast closing or you don't have good credit then a hard money loan is the way to go.
The construction portion of the loan will be provided on a fund-controlled schedule so as more
work is done, more funding is provided. When you need an acquisition or construction loan
quickly, hard money may enable you to buy the property quick without regard to credit or income.
We can also provide financing for rehabbing existing properties based on future value of the
property.
Contact us now at (800) 928-6154 to go over your loan scenarios.
Nationwide hard money provided in all 50 states. Loan amounts start at $100,000 to $ 30
million for residential hard money loans.
For commercial hard money loans, loan amounts in category one loans start from $ 100,000 to
$ 1 million.
For category 2 commercial hard money loans minimum loan amounts start at $ 1 mil. to $ 1
billion. For hard money loans over $ 1 billion exceptions can be made on a case by case basis.
Equity and Debt financing combinations available for loans over $ 30 million.
Types of financing include residential hard money loans: Single family hard money loans, coop
hard money loans, condo hard money loans and 1 to 4 unit hard money loans for conforming
and jumbo hard money loans.
Construction to Permanent
Our “one-time-close” program provides you with affordable, highly-convenient construction and
permanent financing in one simple loan with one set of closing costs. This versatile plan
provides a hassle-free way to access money for lot acquisition, construction, and permanent
funding – all in one place.
Through our construction-to-permanent home loan program, we’ll finance you with a low-rate,
interest-only loan, to help pay for acquisition and construction costs. This is a very affordable
path, as you only make payments on the outstanding loan balance. When construction is
complete in 6 to 24 months, a permanent loan period begins. You essentially get two loans in
one, with one approval, one appraisal, one set of documents, and one-time fees.
No payments during construction phase
6,9, 12, 18 – 24 months for construction
One time closing costs
Primary, secondary residence or up to 4 unit investment properties
Stated income
Acquisition/Remodel Loan Programs
Our Acquisition/Remodel Loan Program enables you to conveniently finance both the purchase
and remodeling construction of your new home, at the same time. Much like the construction-to-
permanent program, the remodeling and permanent phases are combined into one loan,
saving you time and money. The remodel work can take up to 24 months, with available monthly
draws, depending upon the project. When remodeling is complete, the loan transitions into
permanent financing.
Purchase and rehab – no plans, no specs, no contractor, no problem
Purchase, remodel, and rehab combined in one loan with one close and one set of fees
Loans available for 6 – 24 months
Permanent loan rate can be locked up front
30 years, 15 years, 3/1 ARM, 5/1 ARM, Interest-only and Payment Option ARMs
Residential Lot Acquisition Loan Programs
This program offers the flexibility of fixed or adjustable rate financing when you purchase a
residential lot. With loans amortizing over 30 years, you will have ample time to design your
home and select a builder. For added convenience, take advantage of interest-only payments or
our affordable construction-to-permanent loan when you are ready to build.
30 Year loans – fixed, ARM, or interest-only
Up to 90% of lot value
Up to 50 acres
Stated Income
One time close loans for lot acquisition and construction
Raw Land
Hard money land loans, including purchase, refinance and cash out refinance for raw land or
entitled land are provided without regard to income or credit. The determining factors is the
value of the land.
WHY HARD MONEY?
Not everyone qualifies for conventional financing, normally for qualifying reasons such as credit
history, too much borrower debt, insufficient income, job history or incomplete documentation.
Whatever the reason Private Lenders will consider the circumstances and depending on the
applicant’s type of security and their equity in that security a Private Lender could possibly
provide a financial solution for an applicant.
Sometimes individuals prefer to arrange private financing for reasons of privacy. For example,
some people would prefer to buy a recreational property with private funds vs. institutional
financing. They simply do not want their financial institution to know about all of their financial
dealings.
Another situation that often arises where Private Lender are sought out involves the
sale/purchase of a mortgage. Many sales involve seller financing. However, as time goes by
there are a variety of reasons why the mortgagee might now prefer to forego a monthly income
stream in favor of a discounted cash out.
Back to the top
Hard Money Loan Application
For All Types Of Properties
Terms are up to 6 points & up to 75% LTV
ABOUT HARD MONEY
There seems to be a lot of mysticism and confusion surrounding exactly what is meant by
private money lending (also referred to as hard money lending). The boundaries have blurred a
little in the past ten years, but the basic idea is that private individuals who have money to invest
choose to loan that money, generally on real estate secured transactions, with the desire to
receive a fair return (commensurate with risk) on their investment. Some private investors go on
to form a corporate entity, and utilize lines of credit as a source for the funds that they loan - and
this is where the boundaries begin to become a little hazy (as these private investors may begin
to look a little like institutions). Perhaps more important as a defining characteristic of private
money is the process and criteria by which the money is allocated to loans. Private money is
quite different than institutional money in the following ways:
There is generally greater flexibility with regard to the types of loans and circumstances under
which money will be lent.
The strength of the collateral is generally more important than the qualifications of the borrower
(though both are always considered).
It is generally possible to place private money loans very quickly. Income verification is rarely
required, and appraisals are often not required.
The loans tend to be more expensive than institutional loans.
The loans tend to be of shorter duration (5 years maximum in most cases).
There is one myth about private money lending that is prevalent but badly mistaken, so it should
be put straight here.
The Myth:
Private money borrowers are generally desperate borrowers, in trouble, and without options.
The Fact:
Private money borrowers are, most often, solid individuals or businesses that have
circumstances or opportunities that do not fit well into the rigid structures of institutional lending,
and require speed or flexibility unavailable through more conventional means.Back Back to the
top
Hard Money Acquisition & Construction Loans
For developers, sub-dividers & contractors, we can provide
acquisition & construction financing based on the future
value Construction to Permanent of the property.
We provide both bank construction financing and private hard
money construction loans.
Nearly all building and development begins with the purchase of raw land. In the current
environment, many lending sources will not make loans on raw, undeveloped land. We can
help you purchase, construct and develop land for residential sub-division or commercial or
industrial use.
We will work to get you the highest possible Loan-to-Value ratio on your land collateral. We
welcome inquiries from land owners and residential and commercial developers.
Residential 1 - 4 Family, investor properties, condo
conversions and small apartment buildings considered
on a case by case basis.
LIEN POSITION: First mortgage only.
STANDARD TERM: 6 months with monthly extensions up to 13 months.
ADVANCE RATE: 85% to 100% financing of the total project cost, plus
interest, points and closing costs can be financed to reduce funds required at
closing. Will loan up to 75% of the After-Repaired-Value.
RENOVATION
FUNDS: Renovation funds are usually advanced in one to three draws, and
wired directly to your account. Rehab portion of the loan typically not to exceed
150% of acquisition cost unless otherwise approved.
INTEREST: No payments for up to six months. Borrower may finance interest
in loan proceeds at closing.
POINTS: Points can be rolled into loan balance at closing and may be partially
rebated upon early payoff. Points may vary if borrower qualifies for one of Cohen
Financial Group "Line of Credit" programs.
CLOSING COSTS : Up to $1200 of closing costs (i.e. title insurance, recording
fees, etc.) can be financed as part of the loan proceeds.
GUARANTEE: Personal guarantee required.
QUALIFYING DOCUMENTS : Completed Rehab Loan Application including:
(i) Two years of Tax Returns (both personal and business)
(ii) Three months of Bank Statements (both personal and business)
(iii) Current statements supporting liquid assets
(iv) Credit report (obtained by Lender)
LOAN DOCUMENTATION:
(For Each Loan) Purchase Agreement
Summary of Rehab Work to be completed
Builders Risk Insurance (will not closed deal without insurance)
After-Repair-Value Appraisal (Obtained by Lender)
Title Policy (Obtained by Cohen Financial Group)
QUICK FUNDING: Once a borrower has been approved, funding of individual
transactions is typically within two weeks. No need to reapply for subsequent
transactions.
General Terms: Commercial Projects
New Construction Loans: CFG will price these loans on a deal by deal basis.
For new construction and land development loans, the borrower will be required
to bring 10% of the loan amount to closing. CFG offers rates for these type of
projects ranging from 6 to 8 Points and 12-15% Interest with no monthly payments.
CFG's will range from 50-75% depending on parameters such as credit score, down
payment amount, loan duration desired, borrower's experience, and exit strategy.
Commercial Loans: CFG will price these loans on a deal by deal basis. For new construction
and land development loans, the borrower will be required to bring 10% of the loan amount to
closing. CFG offers rates for these type of projects ranging from 6 to 8 Points and 12-15%
Interest with no monthly payments. LTV's will range from 50-75% depending on parameters
such as credit score, down payment amount, loan duration desired, borrower's experience, and
exit strategy.
Land Development Loans: CFG will price these loans on a deal by deal basis. For new
construction and land development loans, the borrower will be required to bring 10% of the loan
amount to closing. CFG offers rates for these type of projects ranging from 6 to 8 Points and 12-
15% Interest with no monthly payments. LTV's will range from 50-75% depending on
parameters such as credit score, down payment amount, loan duration desired, borrower's
experience, and exit strategy.
Information Required
An Executive Summary is an essential document for us to have since it will give us your
summary of all the information in the deal and why you think it is a good profitable deal. It
should include the following at a minimum: Purchase price of the property, Construction costs,
Closing Costs required, Term of Loan Needed, Borrower Experience, Exit Strategy, Borrower
Credit Score, Borrower Annual Income, Estimated Appraised Value - As Is & After Improved.
Please email your executive summary to info@equitydevelopmentcorp.com.
Points and Interest Rates
CFG will price these loans on a deal by deal basis. CFG offers rates for these type of projects
ranging from 6 to 8 Points and 12-15% Interest with no monthly payments. LTV's will range from
50-65% depending on parameters such as credit score, down payment amount, loan duration
desired, borrower's experience, and exit strategy.
Duration of Loans
The term of the loan can be from 6 months to as long as 18 months and will be negotiated on a
case by case basis.
Loan Amount
CFG has no maximum loan amount but we do prefer for each deal to be at least a $500K loan
amount.
Loan to Value (LTV)
The max loan to value (LTV) CFG will loan is 50-65% LTV, which is based on the completed
value (ARV) of the property. The LTV calculation will include the purchase price, construction
costs, purchase closing costs, points, and an interest reserve for the term of the loan.
General parameters for hard money acquisition and construction loans are 85% of the finished
value of the project when built. For bank financing, the loan amount can be up to 100% of the
value of the property, however, credit and income become factors for obtaining bank financing
when they are not considered in hard money financing, where only the value of the property is
considered. If you have strong credit we can get you approved for a bank construction loan. If
you prefer a fast closing or you don't have good credit then a hard money loan is the way to go.
The construction portion of the loan will be provided on a fund-controlled schedule so as more
work is done, more funding is provided. When you need an acquisition or construction loan
quickly, hard money may enable you to buy the property quick without regard to credit or income.
We can also provide financing for rehabbing existing properties based on future value of the
property.
Contact us now at (800) 928-6154 to go over your loan scenarios.
Nationwide hard money provided in all 50 states. Loan amounts start at $100,000 to $ 30
million for residential hard money loans.
For commercial hard money loans, loan amounts in category one loans start from $ 100,000 to
$ 1 million.
For category 2 commercial hard money loans minimum loan amounts start at $ 1 mil. to $ 1
billion. For hard money loans over $ 1 billion exceptions can be made on a case by case basis.
Equity and Debt financing combinations available for loans over $ 30 million.
Types of financing include residential hard money loans: Single family hard money loans, coop
hard money loans, condo hard money loans and 1 to 4 unit hard money loans for conforming
and jumbo hard money loans.
Construction to Permanent
Our “one-time-close” program provides you with affordable, highly-convenient construction and
permanent financing in one simple loan with one set of closing costs. This versatile plan
provides a hassle-free way to access money for lot acquisition, construction, and permanent
funding – all in one place.
Through our construction-to-permanent home loan program, we’ll finance you with a low-rate,
interest-only loan, to help pay for acquisition and construction costs. This is a very affordable
path, as you only make payments on the outstanding loan balance. When construction is
complete in 6 to 24 months, a permanent loan period begins. You essentially get two loans in
one, with one approval, one appraisal, one set of documents, and one-time fees.
No payments during construction phase
6,9, 12, 18 – 24 months for construction
One time closing costs
Primary, secondary residence or up to 4 unit investment properties
Stated income
Acquisition/Remodel Loan Programs
Our Acquisition/Remodel Loan Program enables you to conveniently finance both the purchase
and remodeling construction of your new home, at the same time. Much like the construction-to-
permanent program, the remodeling and permanent phases are combined into one loan,
saving you time and money. The remodel work can take up to 24 months, with available monthly
draws, depending upon the project. When remodeling is complete, the loan transitions into
permanent financing.
Purchase and rehab – no plans, no specs, no contractor, no problem
Purchase, remodel, and rehab combined in one loan with one close and one set of fees
Loans available for 6 – 24 months
Permanent loan rate can be locked up front
30 years, 15 years, 3/1 ARM, 5/1 ARM, Interest-only and Payment Option ARMs
Residential Lot Acquisition Loan Programs
This program offers the flexibility of fixed or adjustable rate financing when you purchase a
residential lot. With loans amortizing over 30 years, you will have ample time to design your
home and select a builder. For added convenience, take advantage of interest-only payments or
our affordable construction-to-permanent loan when you are ready to build.
30 Year loans – fixed, ARM, or interest-only
Up to 90% of lot value
Up to 50 acres
Stated Income
One time close loans for lot acquisition and construction
Raw Land
Hard money land loans, including purchase, refinance and cash out refinance for raw land or
entitled land are provided without regard to income or credit. The determining factors is the
value of the land.
WHY HARD MONEY?
Not everyone qualifies for conventional financing, normally for qualifying reasons such as credit
history, too much borrower debt, insufficient income, job history or incomplete documentation.
Whatever the reason Private Lenders will consider the circumstances and depending on the
applicant’s type of security and their equity in that security a Private Lender could possibly
provide a financial solution for an applicant.
Sometimes individuals prefer to arrange private financing for reasons of privacy. For example,
some people would prefer to buy a recreational property with private funds vs. institutional
financing. They simply do not want their financial institution to know about all of their financial
dealings.
Another situation that often arises where Private Lender are sought out involves the
sale/purchase of a mortgage. Many sales involve seller financing. However, as time goes by
there are a variety of reasons why the mortgagee might now prefer to forego a monthly income
stream in favor of a discounted cash out.
Back to the top
Hard Money Loan Application
For All Types Of Properties
Terms are up to 6 points & up to 75% LTV
ABOUT HARD MONEY
There seems to be a lot of mysticism and confusion surrounding exactly what is meant by
private money lending (also referred to as hard money lending). The boundaries have blurred a
little in the past ten years, but the basic idea is that private individuals who have money to invest
choose to loan that money, generally on real estate secured transactions, with the desire to
receive a fair return (commensurate with risk) on their investment. Some private investors go on
to form a corporate entity, and utilize lines of credit as a source for the funds that they loan - and
this is where the boundaries begin to become a little hazy (as these private investors may begin
to look a little like institutions). Perhaps more important as a defining characteristic of private
money is the process and criteria by which the money is allocated to loans. Private money is
quite different than institutional money in the following ways:
There is generally greater flexibility with regard to the types of loans and circumstances under
which money will be lent.
The strength of the collateral is generally more important than the qualifications of the borrower
(though both are always considered).
It is generally possible to place private money loans very quickly. Income verification is rarely
required, and appraisals are often not required.
The loans tend to be more expensive than institutional loans.
The loans tend to be of shorter duration (5 years maximum in most cases).
There is one myth about private money lending that is prevalent but badly mistaken, so it should
be put straight here.
The Myth:
Private money borrowers are generally desperate borrowers, in trouble, and without options.
The Fact:
Private money borrowers are, most often, solid individuals or businesses that have
circumstances or opportunities that do not fit well into the rigid structures of institutional lending,
and require speed or flexibility unavailable through more conventional means.Back Back to the
top
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