Google’s #1 Reviewed and Rated Hard Money Lender
Frequently Asked Questions
How do I pre-qualify for a loan?
Applying is quick, simple, and best of all, free. If you want to work with us, just let us know. Chat with us online, call us toll free at 888.249.8749, or fill out our easy, three-step online questionnaire for pre-approval. If you qualify, we can send you a Pre-Approval Letter within hours and move forward with the loan processing—at no cost to you whatsoever.
What is Source Capital looking for when considering my loan application?
Our top priority is ensuring your transaction has a positive outcome. Part of that includes making sure you’ll be able to afford your monthly loan payments. Since we offer asset-based financing that mainly focuses on equity to secure your loan, we place less emphasis on your circumstances or credit history.
If I am a foreign national, self-employed or have limited income, can you help?
Absolutely. We’ve worked with clients both in the United States and abroad. We’ll structure your loan depending on your unique needs. If you have limited income or are self-employed, we want to make sure you have the comfort and ability to make your monthly loan payments, but we’re focused on the asset first and foremost.
How long does it take to get a loan and what is the process?
In most cases, our process to fund and close a loan takes 7-10 days from the initial point of contact. After receiving your loan application, you can typically expect to receive a firm commitment letter within 24 hours. To speed the process along, we encourage our clients to be ready to provide us with the necessary information we require. How long your transaction takes is very much depended on your response rate; the sooner we receive your information, the faster we can complete the process.
What are your loan terms?
Based on the loan scenario, risk involvement, and property value to loan amount, our interest rates can vary, but they always start at 7.99%. All of our loans are amortized with fixed rates and a balloon payment (or remaining principal balance) at the time of the loan’s maturity. For transaction and refinance loans that are 12 months or less, we can lend up to 70% of the purchase price or “as is” value of the property. If your loan term is over 12 months, we can fund up to 65%.
Do you have any prepayment penalties?
No. Pay off your loan at any time you like with no prepayment penalties.
What fees do you charge for your loans?
Your hard money loan from Source Capital has only two fees: an Origination Fee (which can range between 1.75-4% depending of the term length and loan-to-value) and a Document Preparation fee ($1,975 regardless of loan size). The borrower is responsible for any potential third-party charges from mortgage brokers, title companies, escrow, or appraisal. If you’re in need of those services, we encourage you to shop for those you feel most comfortable with. We provide a free credit report for any loan we underwrite and will never hit you with upfront fees or junk fees.
What types of real estate can I use to secure my loan?
We’re able to lend on most industrial, commercial, and residential properties intended for business use. We have the capital and underwriting experience to fund a variety of loan requests, from retail to strip malls, commercial buildings to warehouses, condominiums to single-family homes, and most properties in between.
What size loans do you make?
Depending on your scenario, we lend as little as $20,000 up to $5,000,000.
What type of loans do you NOT do?
In accordance to the Texas Homestead Act, we can only lend to non-owner occupied residences, meaning we cannot offer loans to borrowers who intend to live in the property. We do not offer consumer (personal) loans for purposes such as paying child tuition, funding a vacation, or paying off a debt. We also do not fund car loans, unsecured loans, student loans, or real estate loans outside of the states we’re licensed in.
What types of real estate do you NOT lend on?
In addition to owner-occupied homes, we do not lend on special usage properties (such as churches, car washes, or gas stations), land, or agricultural real estate.
Do you provide pre-approval or proof of funds letters?
Yes. If you qualify for a loan, we will issue you a Pre-Approval Letter. However, this is not a “proof of funds” letter such as a bank would provide, nor is it a commitment to fund any transaction at any specified amount.
What states do you lend in?
Currently, we’re licensed to lend in Texas, California, Arizona and Minnesota. Soon, we plan to be actively funding in Colorado and Nevada, as well.
Who is Source Capital Funding, Inc?
We are a licensed, bonded and insured direct lender who utilizes our own investor capital. Since our founding in 2007, we’ve secured over $400 million in loans to thousands of satisfied borrowers, mortgage brokers, and real estate professionals. Our company is a 5-star rated lender on Yelp and Google and boasts an A+ rating with the Better Business Bureau.
What is a hard money loan?
Hard money loans are an asset-based form of financing in which a borrower receives a loan based on equity in real estate. Hard money lenders are focused mainly on equity versus income or credit-worthiness. The interest rates on hard money loans are typically higher than what conventional sources (such as a bank or credit union) may offer because the funds are typically issued by a private investor or company. Most hard money loans are used for projects lasting between 1-5 years.
Do you fund auction purchases?
In most cases, no. Auction purchases pose the risk of outbidding on the price you are willing to pay. Due to this “moving target”, we cannot properly underwrite your loan. We have funded auction purchases in the past, in which cases the borrower had a significant time to secure funds before closing. In these scenarios, we know exactly what number we’re working with, and can underwrite a loan.
General Terms and Conditions
No Prepayment Penalties
Count on Source Capital for some of the most favorable hard money terms in the industry. We know how important it is to fairly structure our clients’ loans and we’ll always explain each term in detail. You’ll never be hit with hidden clauses, “junk fees”, or penalties for paying off your loan early. Curious about just how great our terms are? Give us a quick call or apply online—it’s fast, easy, and best of all, free!
NOTE: All loans are secured by real estate only.