Hard Money Residential Loans

Avatar is a private direct lender. We are a commercial lender but do offer financing on investment residential nationwide, owner occupied residential in the states of WA and CA only or on properties that fit the following criteria:

1. The property must be currently vested as a corporate entity, such as a Trust, LLC, or similar entity. This makes the property an asset of a corporation and can be funded by a commercial loan.
   
   
2. We fund up to 65-70% of the fair market value in the first lien position. Fair market value means:
   
   
• if this is a purchase, we fund based on the purchase price and would require the borrower to put down at least 20% cash equity.
  
  
• If this is a refinance, the fair market or 'as is' value is used.  We are not a rehab lender and do not lend based on the after repair value or ARV.
  
  
3. Our minimum loan is $1 million. At a max 65% LTV, that means the property must have a fair market value of at least $1,500,000 to qualify. We can fund hard money commercial bridge loans up to $20,000,000 or more. So the residential properties we fund tend to be larger, luxury homes.
   
   
4. We do not require a minimum FICO score to fund a hard money loan and we can close in two weeks from the time the borrower chooses to move forward by signing and returning the LOI along with a down-payment toward the third party costs of due diligence. Unlike conventional bank mortgages for residential properties, the costs of due diligence, such as the appraiser's consulting fee to determine the fair market value, attorney fees, escrow, etc. are paid in advance by the borrower. The sum is generally around $5,000. At closing, the borrower receives an accounting of the expenditures for due diligence and any remaining balance is refunded to the borrower.

Be prepared to provide us with the following to review the loan and issue a term sheet:

• Location of the property – city and state
• Investment Residential or Owner Occupied?  Please remember we can only lend on Owner Occupied in WA or CA only.
• The purchase price or estimated current fair market value of the property
• How much you are looking for - remember, we do not offer rehab loans but lend up to 65-70% of the current value/purchase price.
• The reason you are seeking hard money rather than a conventional loan
• Be prepared to send us color photos – inside and out – of the property as well. If you have an appraisal for the property, you can speed the review process by sending that to us.  We don't require an appraisal to reivew the loan, just colored photos, but will use one that has been done within the last 6 months.
• Be prepared to send us a personal financial statement or 100 Loan Application on the borrower/guarantor.

To expedite matters, you can send this to loans@avatarfinancial.com or contact Allison Payne, Loan Analyst, at 888-886-0097.

 

 

Hard Money Residential Loans - Apply for a Hard Money Loan