Direct Hard Money Private Lenders
Fix&Flip, Cash Out, Construction
Over $40,000,000 Funded and YOU ARE NEXT!
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Rates From 5.99% APR*
If You Are Not Using Level 4 Funding You’re
Probably Paying Way Too Much
Flexible Terms From 3 to 60 Months
Fixed Rate From 5.99% APR*
Up to 90% As-Is Value, 100% of Rehab Costs
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Level 4 Funding LLC
Private Hard Money Lender
Tel: 623 582 4444 level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 105737
22601 N 19th Ave Suite 112 Phoenix AZ 85027
What do borrowers say about us?
“Top notch loan broker. who was awesome, quick, prompt, and most importantly, delivered. I would say don’t even waste your time with another broker – these folks get the deal done, period. As a lawyer, they have helped me and many of my clients with a can-do attitude, and professionalism that is unmatched. A definite recommendation.” Paul Nordini
“I was working with a hard money lender (OF) for the past ten days. 24 hours before my loan was supposed to close they called me and told me they were lowering my loan amount by 15%. I called Mark G at Level 4 Funding and told him the situation. If you want work with someone honest and professional call Level 4 Funding today.” Roger Johanson
“After hearing, the good things about this company, I think they are on top of their game. I will keep recommending people I know in Arizona to level 4 Funding.” Rick Carrol
“I was scared and not certain about the deals, but when I talked to my attorney I realized the investment was safe and secured, I was ready to go” David F.
What is Private Hard Money?
It is usually a loan from a private person/individual not a bank for financial institution. Yes, there are people with a boat load of money in the bank and they want to lend it to you. This is legal, and it happens all the time. It’s their money and they will make a deal with you. Its easier and faster because the person making the decision is the person who has the money in their possession. It’s called hard money loan because when the loan is made, the collateral backing up the promise to pay by the borrowers is a hard asset. Typically, a piece of real estate or something of value. It’s a promise to pay, backed up by the borrower’s hard asset. So, its private money from an individual backed up by a hard asset. Which means if the borrowers do not pay, the lender goes and “grabs the hard asset” and the borrower loses the asset (home).
Things to Consider When Obtaining Hard Money Loans
Are you wondering what Arizona hard money loans are and where they fit into your investment strategy? Here are the basics of these types of loans and what they can do for you as an investor.
This type of loan is an asset-based loan. The borrower wishes to secure a loan backed by real property. Private investors and companies are typical issuers of these loans. Unlike banks, Arizona hard money loans can carry higher interest rates. These interest rates are higher than a convention real estate loan because of the higher risk and the duration of the loan which is shorter than conventional real estate loans.
People using Arizona hard money loans are usually looking for funding for projects lasting from a few months to a few years. The criteria for lending and borrower costs are similar to bridge loans. In fact, many hard money lenders specialize in bridge loans. Bridge loans are used for properties that are in transition and may not be able to qualify for traditional financing. An example of a bridge loan is when a home buyer finds a new home they’d like to buy before their old home, which is on the market, sells.
Many hard money lenders will lend 65% to 75% of the current property value. The amount of the loan is determined by the loan to value or LTV. It is figured by the ratio of the loan amount divided by the value of the property. Arizona hard money loans are mainly used for commercial property. These types of loans first started in the 1950s and have been growing in popularity.
Although mostly unregulated by state and federal laws, some restrictions on interest rates by states, commonly known as usury laws, prohibit hard money loans. Two of these states are Tennessee and Arkansas.
Since the 2009 mortgage crisis and the passing of the Dodd-Frank Act, these loan programs have greatly expanded. This is in part due to the strict regulations that were put on banks and lenders after the passing of this act. Truth in Lending and Dodd-Frank set out Federal guidelines for lenders, mortgage originators, and mortgage brokers requiring them to evaluate the borrower’s ability to repay the loan. The ability to repay the loan is on the borrower’s primary residences. If the lender does not conduct the proper due diligence, they are faced with high fines for non-compliance. Hard money lenders mostly lend on commercial loans or business purposes so that they can avoid non-compliance with TILA, HOEPA and Dodd-Frank guidelines.
Before any offer of financing, the lender will want to determine the LTV (loan to value). The basis for the loan is the liquidation value of the collateral.
A BPO (Broker Price Opinion) or an independent appraisal by a licensed appraiser in the state that the property is located in, will value the property. Typical hard money loan interest rates range from 5% to 18%. Despite these rates, investors often turn to them due to quick loan approvals, high flexibility, less documentation than conventional lenders, and offering the ability to put a bid on a property that may go quickly after hitting the market.
Just completed Hard Money Loans
*All rights reserved. The information contained in this material is neither a promise to lend nor a guarantee. This is not a Good Faith Estimate and should not be considered as such. Costs, rates and terms can only be determined after completion of a full application. Mortgage rates could change daily. Actual payments will vary based on your individual situation and current rates. Products available in Arizona/Texas/Colorado/Nevada Only. For 5.99% APR the borrower needs a FICO > 750, LTV 55% or Less and a DSR of 1.5%. Please remember that we don’t have all the client’s information. Therefore, the rate and payment results shown may not reflect your actual situation. Costs, rates and terms can only be determined after evaluating: 1. Property location, 2. Loan to Value (LTV) based on down payment or equity, 3. Credit Score (FICO), 4. Ability to repay, 5. Your capabilities/experience and 6. Site Inspection and title report. For example: A loan of $250,000 at 6% for 12 months the payment would be interest only payments of $1,250/month for 12 months, balance of $250,000 due at end of loan. The borrower would have a FICO Credit Score of 740 and a LTV on 55%. Normally, borrowers who apply for the loans, their rate ranges from 8.5% to 13.9%. For a second position loan the rates vary from 18.9% – 29.5%. Closing Costs consist of the following: 1. Origination fee, documentation fee, and credit report fee, 2. Escrow fee paid to title company, 3. Title Policy paid to title company, 4. Servicing Setup fee plus monthly fee paid to loan servicing company. These are Non-Consumer, Non-Owner Occupied, Bridge Loans, Construction Spec Homes or Commercial Loans. You are not required to pay any upfront fees. However, some programs may require you to pay for an Appraisal or BPO. Appraisals/BPO are handled by nonaffiliated 3rd party and all fees and costs are collected by the 3rd party not by us at Level 4 Funding LLC. You are not required to complete this loan merely because you have received these disclosures or signed a loan application. If you obtain a loan, the Lender will have a mortgage/deed of trust on your property. You will lose your property, and any money you have put into it, if you do not meet your obligations of the loan. You should have sufficient cash reserves and experience to complete the project. As mortgage brokers we offer a wide variety of loan options. You may still qualify for a loan even if your situation doesn’t match our assumptions. To get more accurate and personalized results, please call 623 582 4444 to talk to one of our licensed mortgage experts. Terms and conditions of this and all loan programs are subject to change without notice. Level 4 Funding LLC is licensed in the state of Arizona, NMLS 1018071 AZMB 0923961.