Simply defined, a Private Money or “Hard Money” loan is a loan that is underwritten with the value and condition of the collateral (real estate) as the primary criteria for approval.
In today’s lending environment, more and more people are in need of Private Money or Hard Money loans. CRF focuses on commercial needs. Commercial borrowers face a daunting battle when dealing with conventional loan terms particularly when looking to secure "cash back" on their property, or in the event they cannot fully document income. Many self employed borrowers have accountants that minimize adjusted gross income (AGI) through legal, verifiable write-offs and tax deductions. While this provides tax savings, it often results in the inability to qualify for a conventional loan. Copper River Funding reviews projects with these and other needs, maintaining focus on valuation and condition of collateral.
Generally speaking, no. In some cases we will ask for tax returns and understand how to “add back” income conventional lenders disallow. It is on a case-by-case basis.
Private Money or “Hard Money” costs typically coincide with the layers of risk each project presents. Please refer to Rates and Terms for additional information.
Copper River Funding has a small due diligence fee collected at the time of term sheet signing. This fee covers third party fees such as appraisal, title report, and also an on-site visit from a CRF representative. All funding requests require an on-site visit. Any remaining balance at time of closing will be credited back to the borrower.
Most fees such as points and closing costs can be financed as long as the financed amount along with the requested loan amount stay within the LTV guidelines. The due diligence fee is NOT financeable.
Usually two to three weeks start to finish. If a complete package is submitted, this time can be reduced to 8-10 days. Many variables such as title, appraisal and requested property documentation also play a key role in time frames.
Yes. We do not accept appraisals older than 90 days. We will require new comparables from the appraiser if older than 90 days. Anything outside 120 days will require a new full appraisal, to be ordered by Copper River Funding. Market instability has mandated this firm stance.
On a case-by- case basis only.
On a case-by-case basis. We prefer income producing properties.
No. Copper River will only review first lien projects.
Yes on a case-by-case basis. If a project does not meet our LTV guidelines, we will request additional collateral in the form of other first lien real estate owned, stocks, bonds, cash, cash value life insurance and even contractual receivables. This creates flexibility to get the project to funding.
Yes. Copper River Funding is flexible and creative when looking at projects. If an additional property can be used to meet LTV guidelines, we will use this in addition to the subject property for project completion.
Absolutely. While some question the legitimacy of cross-collateralization, it is a common practice that is even used by commercial banking institutions for simple transactions like car loans. In today's mortgage lending environment, it's becoming even more popular given the growing need for capital amidst a tight lending environment. Cross-collateralization allows us to make loans to qualified borrowers quickly and on flexible terms.