Frequently Asked Questions

What is a 'hard money' loan?

A 'hard money' loan, also known as a 'private money' loan, 'equity-based' loan, or 'asset- based' loan is based primarily on real estate collateral. Private lenders fund the loans rather than institutions such as banks. Since the collateral is sufficient to recover the original investment if the borrower defaults, other borrower qualifications are minimized. Credit history and credit scores are not as important. Borrower income is still a factor in many situations, but not as important as conventional lending.

What is the most common use for hard money?
Our most common loans are used to refinance, create equity lines of credit, and for debt consolidation for first and second mortgages. 

How much equity can I get?

We consider lending up to 70% of the property value. In the case of a 2nd mortgage you must deduct the balance of the senior loan when calculating how much you can borrow. Our 70% maximum does not mean we lend 70% in every situation, or on all property types.

How do I prove income?

If you are employed, we can take a paycheck stub showing year-to-date income.

If you are self-employed, we accept financial statements, bank statements, tax returns, etc.  Stated income is accepted for non-owner occupied properties only.

If you are on fixed income, such as social security or disability, we will require their yearly award letter.

Do you make hard money loans based on the appraised value or the purchase price?

We prefer to use the most conservative value. Sufficient equity is necessary to make the transaction work.

What about prepayment charges?

In many cases lenders will protect their interests by attaching prepayment charges to the initial period of a mortgage. The charges are also known as "prepayment penalties." The state of California has maximum limits for prepayment penalties on loans secured by 1-4 unit residential property. Our loans are written to conform to the Department of Corporations of California statutes.

Prepayment penalty terms are disclosed in the Note and the Mortgage Loan Disclosure statement. Prepayment penalties are negotiable with the lender. In some situations, a penalty can be waived by accepting a higher interest rate or paying extra points.

Do I need to pay for anything up front?

We do not require any fees up front. Our fees are taken out of the loan proceeds upon close of escrow. Occasionally, the borrower may need to pay an appraisal fee up front when an outside appraisal is needed. Such fee would be paid directly to the appraiser, and not Trimark Funding, Inc.

Who orders the appraisal?

We handle our own appraisals. Usually, we do an in-house appraisal when the property is typical for the neighborhood and sales comps are available. If this is not the case, we will order an appraisal with an independent licensed appraiser. We do not recommend that borrowers order their own appraisal. Private lenders, like conventional lenders, give less credibility to appraisals ordered by the borrowers.

How long can the term of the mortgage be?

The loan term can be 7 years for interest only loans, while stand alone seconds are available for 15 years. Longer terms are considered when compensating conditions exist.

Are lending charges higher for hard money loans?

Private lender money loans are more expensive. Our rates and fees are NOT competitive with banks, government, or other conventional lenders. If you qualify for a loan from one of these sources, we recommend staying away from private lenders and hard money loans. The only exception is if you need money fast.

One way we can keep charges to a minimum is by offering 2nd mortgages. The advantages are twofold:

1.   If you have a low interest 1st mortgage, you can keep it and only pay higher interest on the cash out portion of the equity additionally; 

2.   Since the loan amount is much smaller, closing costs are reduced; for example, it's better for you to pay 10 points on a $50,000 2nd mortgage ($5,000), than to pay 5 points on a $500,000 1st mortgage ($25,000).

What other fees do you charge besides your points?

In addition to our loan origination fee quoted to you in the form of points (a percentage of the loan amount), we charge a loan set up fee, disbursement fee, funding fee and an opinion of value fee. These other fees usually add up to $1,175.

Do you report to the credit agencies?

No. We do not report payment history or any loan information to any credit agency. Credit history can be verified by faxing a Verification of Mortgage form to us with the borrower's authorization.

What happens if I can't afford to make the monthly mortgage payments?

Mortgage payments should always be the top priority. If you are unable to pay all your bills, you should consider making the mortgage payment first. The more equity the property has the more you stand to lose through foreclosure. Also, late fees, collection costs, and foreclosure fees are chargeable to the mortgage account. These fees can add up quickly, compound financial difficulties, and hurt the ability to catch up after falling behind.

How long is the loan process?

When you submit a loan to Trimark Funding, it typically takes 7 - 10 days from start to finish. You will receive your pre-approval within 15 minutes, and approvals in 24 hours. If you  need funds faster because of an impending foreclosure, sale, or other emergency situation, we can cut the process down depending on title conditions.

Will you pull my credit report when I apply?

No. Credit is not necessary for us to make a loan decision. We don't pull your credit until after we know we are making a loan for you, and not without your permission.

How do I get started with Trimark Funding?

The starting point is to apply online by submitting a request for a 15 Minute Pre-Approval, or by contacting us by phone at 1-888-274-2962 with the same information found on the online form.

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