What Are Hard Money Programs?

Island Funding Group offers first mortgage loans of between $100,000 and $2,000,000+, to be used for commercial or investment purposes on properties that are not primary residences of the borrower. Loan terms of six months to three years are available and can be secured by commercial or residential property.  Rates are competitive, with annual interest rates generally from 8% to 14% with 2 to 5 points. Apply Now

How Are Hard Money Programs Useful?

IFG’s hard money loans are particularly useful where speed is essential or where the documentation or credit rating requirements of conventional lenders are too rigid. The following are sample situations. Apply Now

What Are Some Common Scenarios for Hard Money Loans and Private Lending?

Scenario 1 – Borrower has located a Real Estate Owned opportunity or foreclosure sale property that can be acquired at a significant discount to market, but the purchase must be concluded in two weeks. Borrower has a significant portion of the cash needed to close, but needs to borrow the remainder faster than a conventional lender can move or the deal will be lost. Apply Now 

Scenario 2 – Borrower is creditworthy but is running out of time to close on the purchase of exchange property, and is at risk of losing the tax-deferred aspect of a previous sale under IRC 1031. If borrower has significant equity to use toward the acquisition of the target property needed to close on, we can provide the balance on short notice, so that borrower can later obtain permanent financing without losing the tax benefits. Apply Now 

Scenario 3 – Borrower has encountered medical emergencies or other financial reversals that have damaged their FICO score. Using the equity in their investment or commercial property, borrower wishes to borrow and use the loan proceeds to pay off existing debt while rebuilding credit to qualify for conventional financing. Apply Now 

Scenario 4 – Borrower has failed to file tax returns or has unreported income. Borrower needs to finance the cost of repairs to make an investment property saleable, but conventional lenders insist on documentation of income and current tax returns. Given sufficient equity and a reasonable plan of repayment, a hard money loan provides the funds for repairs. Apply Now