Questions,answered.
Straight answers on how our loans work. If yours is not here, call or send a message.
Getting started
Who is Hard Capital for?
Real estate investors. Every program we offer is for business purposes on non-owner-occupied investment property. We do not lend on primary residences or second homes.
How fast can I get a term sheet?
Within 24 hours of a complete scenario. Submit your application online or call us, and a loan officer will come back with numbers and a conversation about them.
How fast can you close?
Our average close is 15 days across all programs. Hard money can close in as few as five days on fix and flip, and seven to ten days on bridge loans. DSCR and alt doc loans take longer because they involve full appraisals and documentation.
Where do you lend?
Our focus is Texas investment property. If your deal sits elsewhere, send it over and we will tell you honestly whether it fits.
What does it cost to apply?
Submitting a scenario and receiving a term sheet is free. Fees and costs are itemized on your term sheet before you commit to anything.
Hard money
What is hard money?
Short term financing secured by real estate and underwritten primarily on the property and the plan rather than on your tax returns. It is built for situations where speed matters, such as acquiring a distressed property, completing a renovation, or building from the ground up.
How much will you lend on a fix and flip?
Up to 70% LTV and up to 100% LTC. The final amount depends on the property, the renovation budget, your experience, and your credit.
How are renovation funds released?
By draw. As work is completed and verified, funds are released so you are not carrying the full cost of the project. New construction draws are tied to completed milestones.
Can I refinance out of a hard money loan with you?
Yes. A common path is to fund the purchase and rehab with hard money, lease the property, and then refinance into a long term DSCR loan. That is the idea behind hard money to long money.
Do you lend to first time investors?
We consider them on a case by case basis for hard money, and our experience requirements vary by program. DSCR 1 to 4 units and alt doc loans are open to first time investors. DSCR 5 to 8 units requires a track record owning rental property.
DSCR and alt doc
What is a DSCR loan?
A debt service coverage ratio loan qualifies the property by its rental income rather than your personal income. The ratio is monthly rent divided by the full monthly payment, including principal, interest, taxes, insurance, and association dues. A ratio of 1.00 or higher is the standard qualifying position.
What if my property is below a 1.00 ratio?
Programs exist for ratios from 0.99 down to 0.75 and for ratios below 0.75, generally at reduced leverage. Send us the scenario and we will tell you what is possible.
How much can I borrow on a DSCR loan?
DSCR 1 to 4 units runs from $125,000 to $3 million with leverage up to 85% LTV. DSCR 5 to 8 units runs from $400,000 to $2 million with leverage up to 75% LTV on purchase.
When does alt doc make sense?
When your tax returns do not reflect your real income, which is common for self employed investors and business owners. You can qualify with bank statements, a profit and loss statement, 1099 income, or your liquid assets.
Is there a prepayment penalty?
Investor DSCR and alt doc loans carry a prepayment premium in most states, and some states restrict it. The structure and period are stated on your term sheet.