FAQ

What is a hard money loan?

A hard money loan is a type of asset-based financing where the funds of the borrower will be secured from the equity of a property. Interest rates are higher compared to conventional loans issued by a bank. Hard money lending is mostly funded by private investors secured by promissory notes and Deed of Trust.

 

Who typically uses a hard money loan?

• People who want to close an escrow quickly

• Investors looking to purchase investment properties

• Property owners wanting to pull cash out of existing properties

• Property owners who have multiple properties wanting to cross collateralize

• Investors who flip properties - buy, remodel, and resell a property in 3 to 6 months

• Property owners who can’t refinance with a traditional bank due to bad or no credit

 

What are the benefits of working with hard money lenders?

You can get your fund, for whatever purpose, in time to achieve your goals.

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What does Loans with Peetason look for when qualifying a loan application? What type of properties do you lien on?

The borrower needs to have a property with enough equity in California. We can do loans up to 75% LTV (Loan to Value).

 

What if we have bad credit, are in bankruptcy, or are in the process of foreclosures? Will this hinder me for a loan?

No. We don’t check your credit score or your financial records. All we use is the equity of your property. 

 

How do I submit a loan request?

You can complete our loan application. Or you can contact us by email/phone. We will be happy to talk directly to you as we can decide quickly if we are interested.

 

How long does the loan process take?

We can usually fund in 3 to 5 working days.

 

What is the cost of a hard money loan?

Our interest rates range from 10% - 12%, interest only. Lender points range from 1% - 5% of the loan amount. The borrower pays for all standard closing costs - title, escrow, and legal.

 

Is there a penalty if I return the loan before it is due?

No, all our loans are with no prepay penalty.

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Can I return the loan in a very short time, say one month?

Yes, the duration of the loan can be a few weeks to 6 months. We actually don't prefer loan over 6 months. 

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Can I get an extension if I can't payoff when the loan is due?

Usually yes if you pay the interest due and we likely will extend the loan in the same terms and conditions when it was initiated.