Hard Money Loan Guidelines
Unlike banks and other traditional lenders, ICF considers each loan request based on its specific merits and circumstances. Primary considerations for loan qualification include a borrower's:
- Equity position in the property
- Ability to service the loan
- Proposed exit strategy
Other criterion includes, but is not limited to:
Geographic Area: Texas – urban and suburban properties only
Collateral: Commercial, investment residential, land
Security: 1st liens only secured by note and Deed of Trust
Loan Limits: $100,000 – $5,000,000
Maximum LTVs: Commercial: Up to 65% LTV (Retail, Office,
Industrial/Flex, Mixed use, Apartment)
Residential: Up to 70% LTV (1-4 unit investment
property)
Land Development: Up to 55% LTV
Land: Up to 50% LTV
Loan Term: 6 – 18 mos (extensions available)
Interest Rate: 11.99%+
Amortization: Interest-only, monthly payments
Interest Reserve: Case by case
Prepayment Penalty: Case by case
Origination Points: 3% - 6%
Income Qualification: Case by case
Asset Qualification: Case by case
Credit Scores: Minor consideration due to asset based lending criteria
Credit History: No recent bankruptcy or foreclosure. Sensitivity to recent mortgage delinquency. Other credit history reviewed case by case
Target Borrower: Proven history of commercial and/or investment residential management experience
Borrower Types: Personal or Entity (ie Corporation, Limited Liability Company)
Personal Guaranty: Required. If borrower type is Entity (ie Corporation, Limited
Liability Company), Guarantor must be one or more individuals.
Creative/Flexible: Cross-collateralization/blanket loans, asset pledging, equity
participation, etc.