Find Nationwide Hard Money Lenders
at Hard Money Funding Group .com
Featuring Private Equity Loans ...

›› Contact Hard Money Lenders

Special Purpose Property Hard Money Loans are Offered by Special Purpose Property Hard Money Lenders

Hard Money Loans for a Special Purpose Property

A special purpose property in the proper location can be a terrific investment. Perhaps you’ve found one for sale, or you need to upgrade the one you own. A Hard Money Loan may be what you need to pay for that upgrade to your property, or perhaps you want to purchase the one that is for sale. If your present credit situation, or the location or physical conditions of the property won’t allow financing through conventional conforming loan channels like banks and mortgage brokers, now may be a good time to apply for a hard money loan.

Reasons for Applying for Hard Money Special Purpose Property Loans

  • Credit maxed out
  • Property in remote location
  • Property not of conventional construction
  • Value based on land alone
  • Value cannot accurately be determined
  • Potential income from property cannot be verified
  • Cannot give a completely accurate estimate of what addition will cost
  • Need to act quickly

There are hard money lenders all over the country: private investors, mortgage companies, or banks that deal in hard money financing can help finance renovations or acquisition of another property. If you deal with a hard money loan broker, be prepared to pay “points”: an up front percentage that probably will start somewhere around 3%. The collateral that secures the loan will be the special purpose property itself. The lender may also ask you to put up other assets to consummate the deal. Hard money lenders will typically finance only a percentage of the purchase price of the special purpose property--usually 65% to 75% (Loan to Value Ratio). Since the property will produce income, a loan can be based on the value of the property plus its income producing potential. Interest rates might possibly run from 8% up; may initially be fixed, but later become variable.

Experience in running a special purpose property will be a plus in applying. Be prepared to give the lender the following, in addition to color photos of the land and any buildings.

Location of the property
Date of purchase
Date of closing
Purchase price and appraisal if available
Estimate of fair market value
Reason for applying for hard money loan
Verifiable gross income or expected income
Yearly expenses to be incurred on property
Estimate of proposed repairs to present property

Disclaimer: The hard money loan calculators found on this website are offered only to estimate monthly loan payments of hard money Special Purpose Property loans. No guarantee is offered or implied as to their accuracy. Hard money Special Purpose Property loans are non conforming, they do not conform to the underwriting guidelines of Fannie Mae or Freddie Mac. Each private equity hard money lender has their own fee structures which may include points at closing and early prepayment penalties. Discuss all of the details of your particular hard money Special Purpose Property loan including all costs and fees with your selected hard money lender.