|Loan Program||Hard Money|
|Loan Amount||$50,000 – $500,000|
|Loan Term||12 months|
|Extension Fees||1% for 3 month|
|Fix & Flip Max LTARV||70%|
|Min Credit Score||600|
|Roll Points into Loan||Yes, .5pt premium|
|Payments Due||Monthly IO|
|3rd Party Servicing Fee||$15/mo|
|Draw Request Fee||$200|
|Buy and Hold Max LTARV||75%|
Hard Money Loan
A private money or hard money loan is a short-term loan secured by the property itself and used by investors to purchase and repair a property before sale. Real Estate Investors typically use hard money loans to purchase, rehab, and sell a property within 3 months to a year. These loans are ideal for financing properties in poor condition or when you need to close quickly.
Hard money loans, also referred to as rehab loans or private money loans, have lower qualifications and require significantly less paperwork for approval compared to banks. Most of our Freedom Money customers receive funding within 2 weeks. Freedom Private Money and its underwriting guidelines care more about the property and its potential after repair value (ARV) than about the borrower’s background as the loan is guaranteed by the property. However a higher credit score will earn you a lower interest rate.
Freedom Private Money is a hard money lender that helps experienced flippers and landlords finance investment projects.