Example Hard Money Loan Terms for Multifamily and Commercial Property

Size: $500,000 and up
Term: Typically, 6 months to 3 years (extension options available)

Interest Rates: Typically,12%+

Origination Fee: Typically, 3.00% - 5.00%
‍Amortization: Interest only (deferred payments occasionally available)
‍Maximum LTV: Typically limited to 65% of as-is value


Advantages

  • Loan amount determined by property value
  • Fast closing process
  • Limited borrower qualifications required


Disadvantages

  • The highest rates
  • The highest closing costs
  • Short period with balloon payment
  • Risk of losing property for a small loan amount
  • Full recourse


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