Northwest Private Lending has streamlined their hard money loan process.
Insurance Requirements: Borrowers must have basic fire and liability insurance for the cost of the home, or a minimum insurance policy of the loan amount.
Loan-to-Value Limits: Maximum LTV varies by property or loan type: 80% max LTV for fix-and-flip purchases, 65% max for property purchases that do not require significant improvements, 65% max for cash-out refinances, and 50% or less for bare land.
Loan Duration: Loan duration is quite open. We generally write our loans for either 2 years or 5 years, depending on whether it is a business-purpose loan (Oregon, Washington, or Idaho) or a loan on a primary residence (Oregon and Idaho only). That being said, it is standard practice for NW Private Lending to extend loans for free if a loan is in good standing. Said another way, we do not charge extension fees and we do not charge prepayment penalties.
Rates and Terms: Our present interest rate is 12% annualized, which is the same as 1% per month. Our closing costs include our standard 3% loan origination fee and a doc fee of $650 on non-owner-occupied loans or $850 on owner-occupied loans (Oregon and Idaho only).
Collateral: Hard money loans require first-position liens on real estate, secured via promissory note, loan agreement, trust deed, and title policy. Most loans are on non-owner-occupied property. Owner-occupied loans are available case by case in Oregon and Idaho; Washington loans are business-purpose only.
Application and Approval: Applicants typically receive a decision the same day.
Payment Options: Borrowers can pay via check, direct deposit, automatic bill pay, or cash. Credit cards cannot be used to pay a mortgage of any kind, including ours.
There is no minimum credit score or appraisal needed — the lender conducts internal property valuations.