Hard Money Loans | Frequently Asked Questions2020-02-20T20:42:56-08:00

Frequently Asked Questions

At FK Capital Fund, we have an assortment of loan programs and we have organized this Frequently Asked Questions section to account for each loan program and loan type. Please call or email for any specific questions that are not answered here.

Traditional Hard Money Program FAQ2022-10-13T16:54:35-07:00

How fast can you close?
We typically are waiting on the borrower and title. If they’re quick, we can close within a week or so.  The appraisal, when required, takes the most time.

Do you require appraisals?
A vast majority of the time, we require appraisals, but if it is warranted, we will consider a desk appraisal only which would be accompanied by a site inspection.  Regardless, we carefully analyze the comparable properties in the surrounding areas to make a final determination on value for residential properties.  For commercial properties, we determine an appropriate capitalization rate for the area and base the value on the capitalized net income of the property.

Will you go higher than 65% loan to value (LTV)?
If the deal makes sense, we will consider up to 70%, but there would need to be compensating factors such as high credit, high personal income, a repeat client, purchasing a property under market value and 70% would be for residential only.

Will you consider land loans?
We will consider land loans, generally up to 50% loan to value.

Do you have minimum credit score requirements?
We want to see a quality investor profile and strategy, but we don’t have specific credit requirements.

What are the lowest points that you charge?
Our average fee structure is somewhere between 1 and 2 points, but we also can offer par pricing.

High LTV Investor Rehab Program FAQ2022-10-13T16:55:50-07:00

Do I have to bring money into the deal to close?
Yes. We require some money to be brought into every transaction. Though we will go to a very high loan to value, above 100% of the purchase price at times, there will always be money required to close.

How do you determine the money required to close?
Our formula relates to the Total Deal and the After Repair Value. We will lend up to 65% of the After Repair Value and require a minimum of 15% of the Total Deal to be brought into the transaction. The Total Deal refers to the Purchase Price + Fees + Interest Reserve + Rehab costs.

What is After Repair Value or ARV?
ARV is the estimated value of a property after the rehab is done.

Will you joint venture on a deal?
We will consider it, but we don’t have a specific guideline. If the company or one of the partners, or other associates would like to joint venture, we will offer terms, but we would prefer to do the loan.

Can we do the rehab using credit and not bring in the rehab dollars?
No. The rehab dollars will need to be brought into escrow. You can do it on credit and get the money refunded later though.

Is the interest reserve required?
We require a minimum interest reserve of 3 months.

Do you have minimum credit score requirements?
We do not have a minimum credit score, but we will not be quite as aggressive with a lower credit score.


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