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.

What is the most common use for hard money?
Our most common loans are first mortgages used to purchase non-owner occupied properties and first mortgages to refinance or create equity lines of credit used to rehab non-owner occupied properties.  We recommend that you take the time to understand when hard money is an appropriate option and which borrowers benefit from the use of hard money. 

Do you cooperate with real estate brokers and other mortgage brokers?

Yes, if you need a hard money source for a client or other contact, we are a direct lender and that means you can qualify for referring broker fees,  if you are properly licensed, and earn fees as a referring broker,

How much equity can my clients get?

We consider lending up to 60% of the property value. Our 60% maximum does not mean we lend 60% in every situation, or on all property types. 

How do my clients prove income?

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

If they are self-employed, we accept financial statements, bank statements, tax returns, etc.

If they 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 and all applicable Federal 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 my clients 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. In today's market, we look very closely at the value and the value trends. We do not recommend that borrowers order their own appraisal. Private lenders, like conventional lenders, give less credibility to appraisals ordered by the borrowers.

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 your client qualifies for a loan from one of these sources, we recommend staying away from private lenders and hard money loans. The only exception is if your client needs money fast and/or short term for a profitable investment project. 

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 my client can't afford to make their monthly mortgage payments?

Mortgage payments should always be the top priority. If your client is unable to pay all their bills, they should consider making the mortgage payment first. The more equity the property has the more they 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 your client needs 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 client's credit report when they apply?

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

If you are a broker new to our service, we ask you to complete a Broker to Broker Agreement only after your very first loan submission package has been faxed to us and approved.

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