Hard Money Real Estate Farm Loans
The term "hard money" defines loans which are secured primarily by the hard assets( i.e. real estate) which are the collateral. Credit ratings, debt to asset ratios and income history are more lenient than with traditional loans.
However, this type loan carries a high interest rate and is normally taken for periods of two years or less. Borrowers must have a definite plan of how to repay the loan or refinance to a lower interest rate as quickly as possible, as the interest charges will become a major expense over time. In many circumstances the high interest cost of a hard money loan can be justified if it allows the borrower to position himself to qualify for a lower interest loan in a relatively short time.
Janus Ag Finance will combine this loan with an in depth analysis of how to obtain a "soft money" loan as quickly as possible, thus giving the borrower a define plan of action to eliminate the high interest charges with a timely and affordable schedule.
- Loans up to 55% of property value (in some cases higher LTVs may be available)
- No minimum credit history required
- Minimum loan amount $500000
- Property worth at least $1 million
- First liens only
- Although underwriting criteria is more liberal than for conforming loans, income projections, credit scores, and owner equity are still important factors in the loan evaluation process.
- Prepayment penalties usually expire in six months
- Wide range of real estate properties will qualify, including commercial, agricultural, residential (subject to state lending laws) and facilities
- Interest escrow or interest only plans available
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