Hard - Private Money Loans | We Finance America

Hard money loans are for investment properties only and are considered an asset-based bridge loan. The financing is based on the loan-to-value (LTV Ratio) of the asset (the investment property) and has 9–24-month terms for private investors looking to invest in real estate.

There are fewer restrictions on this type of mortgage loan than other traditional loans, where the investor must present income verification during the approval process. When applying for a hard money loan the borrower will have to go through full underwriting, however there is no minimum FICO score required and the borrower will not have to worry about bankruptcies, foreclosures, collections, etc.
Hard money loans are a very strong tool for investors who need to move quickly. These short term (usually 12 months) loans are the perfect opportunity to aid any investor in developing their success.

A soft money asset-based loan combines the benefits of hard money loans with lower risk, higher rates, and a term loan time-frame – soft money loans fit many borrowers far better with lower costs, lower rates, and longer terms (5/1 ARM, 30 year fixed).

Interest rates for soft money loans start at 6.99%, and this means WFA can offer real estate investors the best rates in the mortgage industry.

A stated income or no income verification loan, is one of the leading private money loans available to real estate investors, allowing the borrower to secure funding without needing to qualify on their debt-to-income ratio.

Unlike conventional mortgages, a stated income loan is easier to be approved and is a way for self-employed borrowers who would not qualify for traditional financing to achieve their investment dreams. These types of loan programs are for investment properties only and not for primary residences or an owner-occupied property.

* Only Real Estate Investors with high credit scores (over 650) are eligible.

With bank statement loans you still must qualify for your DTI (debt to income ratio), most lenders use bank statements (typically up to 2 years) to confirm a borrower’s income rather than tax returns and recent pay stubs like traditional mortgages.

Bank statement loans are offered through NON-QM mortgage lenders, like our preferred lending partner who offers a mortgage program that supersedes a bank statement loan, which is a true stated income/no-income verification/NO-DOC mortgage. This loan program benefits investment properties and commercial properties nationwide.