Residential Hard Money loans are based on the After Repaired Value (ARV) of the property and include funds for both purchase and rehab.
Borrower Criteria
- Minimum Credit Score of 650
- Minimum of $15,000 or more in a Checking, Savings, IRA and/or 401(k) account
- No Recent Bankruptcy or Foreclosures (subject to review by Longhorn)
Property Criteria
- First Liens Only
- Single family, 2-4 unit, town homes (no condominiums or manufactured homes).
- Our loans are made on the After-Repaired Value (ARV)
- Appraisals must be ordered by Longhorn and performed by a third-party appraiser.
- Properties should be located in or around suburban and/or major metropolitan areas: Dallas, Fort Worth, Houston, Austin, San Antonio, St. Louis, Kansas City, Indianapolis, Charlotte, Greensboro/Winston-Salem, Raleigh/Durham, Nashville, Chattanooga, and Knoxville etc…
- Longhorn reserves the right to adjust advance rate requirements as deemed necessary.
Loan Terms and Fees
- A mortgagee’s title policy is required.
- An insurance policy is required on all loans for the term of the loan.
- Up to 70% of the After Repaired Value (excluding points & fees), not to exceed 100% of cost.
- 6 month term
- 3 month optional extension (extension fees may apply)
- 12% - 14% interest only payments
- 3 to 5 points origination (depends on location)
- Appraisal Fee: $425 – $550 (dependent upon location and independent appraiser’s fee)
- Inspection Fee: $100 - $150 / inspection
- Loan Documents: $475
- Loan Admin Fee: $500
- Credit Report Fee: $30 ($35 for Joint)
- Flood Certificate Fee: $15
- Monthly Servicing Fee: $15
Appraisals / Insurance
- All appraisals will be based on After-Repaired Value (ARV)
- Appraisals will only be ordered by Longhorn Investments
Borrower MUST provide a minimum 6-month insurance policy to be paid in full at closing. Borrower's insurance agent should provide a certificate of insurance or evidence of insurance, including invoice, to our processing department prior to closing.
- Insurance premiums are to be paid in full at closing. NO EXCEPTIONS.
- Dwelling only coverage must include vacancy and vandalism riders. A builder's risk policy is preferred for rehabs over $20,000.
- If a borrower has a blanket policy, the insurance agent must provide proof of insurance showing the addition of the new property and showing proof of in-force blanket policy.
- Replacement cost coverage is required.
- The lender must be named as loss payee and additional insured.
Order your insurance early! Delay in providing insurance coverage can delay the closing of your loan!
