Do You Know What a Rental or Investment Property Hard Money Loan Is?

In case you yourself or a client, friend or family member has any interest in investing in real estate, I wanted to inform you as to what a Hard Money Rental Property or Investment Property Loan is. We use these terms interchangeably. They can be smaller size loans or jumbo size loans ($417,000 and up).

A Rental Property loan is the most commonly used Hard Money program. Other popular Hard Money loan programs are Bridge loans, Temporary loans, Commercial loans and those loans for purchase or refinance of a principle residence.

A rental property loan is always secured, meaning a home or condo or commercial unit guarantees the payment of the loan. The length of the loan can vary from 12 months to 5 years and possibly longer in some circumstances.

This loan type will generally have a prepayment penalty applied to it, which can vary Lender to Lender. It will also require a minimum equity of 25% in the case of a refinance or a minimum down payment of 25% if a purchase.

Some instances of when you might use this type of loan are:

Rates and fees for such a loan can vary by Lender. They are generally based on the loan to value (loan amount in relation to value of the property) and the size of the loan. Other factors include the condition of the property and the circumstances of the Borrower.

If the Rental Property is in the state of California you can find out about our rates and fees by checking out the Rate Sheet on our website:

www.Sunpacmortgage.com . Also feel free to call in to our office at 707-523-2099 and we will let you know what you might qualify for.

I hope this has helped you understand more about what a Hard Money Rental Property or Investment Property Loan is! Don't hesitate to message me via LinkedIn, call me at my office 707-523-2099 or email me directly: [email protected] with any of your questions or interests in investing.

Best, Ken

Lead Loan Originator at family owned & operated Sun Pacific Mortgage and Real Estate, Hard Money Broker serving all of California since 1988! CA BRE license #01858042. NMLS #1221130