Google’s #1 Reviewed and Rated Hard Money Lender
Frequently Asked Questions
How do I pre-qualify for a loan?
Our process is fast, easy and free. We let you decide how you want to work with us: Simply complete our three step preapproval questionnaire on our website, call us toll-free at 888.334.6636 or chat with us on-line. If you are pre-approved we can submit a Pre-Approval Letter to you at no cost in a matter of hours and move forward in the loan process towards funding.
What is Source Capital looking for when considering my loan application?
We are direct, hard money lender that funds loans based on real estate equity rather than a borrower’s credit score or financials. Unlike a bank, we do not heavily focus on your credit history, employment or financials when underwriting a loan. If you are looking to buy a property or refinance your current loan, we may be able to help.
If I am a foreign national, self-employed or have limited income, can you help?
Yes. We have worked with clients both in the United States and abroad and know how to structure the loan to best suit your needs. For those who are self-employed or have financial limitations, we focus on the asset first and foremost and ensure that if we provide a loan, that you have the comfort level and ability to make your monthly payments.
How long does it take to get a loan and what is the process?
Typically, from the time a prospective client contacts us until the loan is funded and closed, our process takes a maximum 7-10 days. You can typically expect a firm commitment letter within 24 hours of receiving your online loan application. We encourage our clients to be prepared to provide us the information we need in a timely manner. Speed for your transaction is very dependent on your response time – the sooner you can get us what we need the quicker we can complete the process.
What are your loan terms?
All of our loans are amortized and have fixed rates with a balloon (remaining principal balance of loan) payment due at the end of the loan term. We underwrite loans for one, two or three years with and have no prepayment penalties. Our loan rates start at 7.99% depending on the loan scenario and risk involved and is most heavily influenced by the property value to loan amount. For both a purchase and a refinance transaction, we lend up to a maximum 70% of the purchase price or “as is” value of real estate if the loan is for 12 months or less. For loan terms longer than 12 months, we lend up to 65% maximum.
Do you have any prepayment penalties?
No. You may pay the loan off at any time, as all loans we fund have NO prepayment penalties.
What fees do you charge for your loans?
Source Capital only has two fees associated with our loans: An Origination fee that can range from 1.75%-4% of the loan amount (depending on loan-to-value and length of loan term) and a Document Preparation fee of $1,975, regardless of loan amount size. Third party fees such as those charged by mortgage brokers, title, escrow and appraisals are the responsibility of the borrower. We encourage you to shop for those services to find those that you feel most comfortable with. We have no junk fees or upfront fees and provide a free credit report on every loan we underwrite.
What types of real estate can I use to secure my loan?
We lend on most residential, commercial and industrial property. From condominiums to 1-4 unit and multi-family properties to commercial buildings, retail and strip malls, we have the underwriting experience and capital to help fund your loan request.
What size loans do you make?
We lend as little as $20,000 up to $5,000,000 depending on your scenario.
What type of loans do you NOT do?
We do not do personal (“consumer”) loans such as a loan to pay off personal debt, to purchase a primary residence, funds to go on vacation or pay tuition for a child, etc. We also do not fund student loans, car loans, unsecured loans or real estate outside of the states we lend in
What types of real estate do you NOT lend on?
We do not lend on special uses properties (gas stations, car washes, churches), land or agricultural real estate.
Do you provide pre-approval or proof of funds letters?
Yes. Upon review of the application, a Pre-Approval Letter will be issued to those who qualify. However, this is not a commitment to fund any transaction at any certain amount and it is not a “proof of funds” letter, as a bank would provide.
What states do you lend in?
We currently are licensed to lend in California, Arizona, and Minnesota. In 2016, we fully expect to be actively funding in Colorado, Texas and Nevada.
Who is Source Capital Funding, Inc?
Source Capital is a direct lender that utilizes its own investor capital and is licensed, bonded and insured in Arizona, California, Minnesota and Oregon. Founded in 2007 and headquartered in San Diego, California the company has funded over $400M in loans to thousands of satisfied borrowers, brokers and real estate professionals. The company is “A+” rated with the Better Business Bureau and is a five-star reviewed lender on Google, Yelp, Yahoo! and Bing.
What is a hard money loan?
A hard money loan is a specific type of asset-based financing where a borrower receives funds secured by equity in real estate. Lenders are mainly focused on the equity as opposed to borrower credit and financials as it is the real estate that is securing the loan. Because private investors or companies typically issue hard money loans, interest rates are higher than those offered by conventional sources (i.e. bank, credit union, etc.). Most hard money loans are used for projects lasting anywhere from one to five years.
Do you fund auction purchases?
Typically, we do not. If you are purchasing a property at auction you have the chance to be outbid on the price you are willing to pay. Because the price is a “moving target”, we do not have the ability to underwrite the loan properly.
The auction purchases we have funded are those in which the borrower has a significant amount of time AFTER the purchase to close. This way we know exactly what we are working with.
General Terms and Conditions
No Prepayment Penalties
We have some of the most favorable commercial hard money terms in the industry and understand how important it is to offer our clients fair terms. Our customers can count on never having to be penalized for paying off a loan early or be hassled with “junk fees” and ridiculous terms. Call or apply now and see just how great our residential hard money loan terms are. It’s fast, easy and most important- free!
NOTE: All loans are secured by real estate only.