Frequently asked questions
1. How do you define "Hard Money?"

"Hard Money" loans or "equity loans" as they are sometimes called refer to non-conventional real estate loans. They are usually funded by private money sources and investors not banks, pension funds, etc. Interest rates and points on such loans are usually higher. Terms usually range from 3 to 12 months. Hard Money loans have one basic requirement. There has to be substantial equity in the property to give the lender a reason to invest their funds in an otherwise risky venture.

So, why would you utilize a hard money lender? The property to be purchased might be presently vacant and in need of repairs. It may be older property in a failing neighborhood which has the potential for revitalization. It may be a foreclosure and can be purchased on a short sale. You may just need a quick closing to secure a property before you find an investor/rehabber to which you want to resale the property. You may want to purchase a run down piece of property, rehab the property, and refinance it for rental income. In all these cases, you would need a hard money loan because conventional financing is just not an option or it would take too long to secure. "Hard Money" is just a cost of doing business and an effective method of doing business as a real estate investor.

2. How long does it take to get approved for a loan?
Within one or two days after you have submitted your loan application and documentation, we can usually make a decision.
3. How long does it take to close the loan once I have been approved?
After your submitted property has been approved, it normally takes around seven business days. Sometimes more, sometimes less. Many times it all depends on how long it takes to have a title search completed and schedule a slot with the title company for closing.
4. Should I have an investment property under contract before I fill out the loan application form?
Pacific Union Funding can pre-approve you for our loan program prior to your finding the right investment property. Our process is two-fold: first we approve the applicant, then we approve the investment property you are interested in financing.
5. What is the term of the loan?
We write 6 month loans and can extend these loans for up to 12 months depending on your needs. The object of a hard money loan is to either turn the property quickly or have it rehabbed and refinanced with a conventional lender. Since Pacific Union Funding does not have any prepayment penalties, you may prepay the loan anytime you wish prior to the term of the loan.
6. Do I have to fill out the loan application form each time I submit a new investment property for financing?
If it has been less than six months since you were approved for a loan with us, we do not require another loan application. Periodically, however, we will ask you to update your financial information for our records.
7. Can I get repair money to rehab my investment?
You most certainly can. We fund all your repairs up to what the LTV will allow. We do require you to complete a detailed, itemized repair list of the repair work. A draw schedule identifies the order in which the repairs should be made. After a certain percentage of the repairs have been completed and verified, the monies are funded from your loan account and forwarded to you.
8. How does the draw procedure work?
Each draw request will require an inspection to ensure that the work is completed in a thorough and professional manner. After completing a certain percentage of the required work, you will fill out a "Draw Request Form" and forward this to Pacific Union Funding. We will schedule an inspection of your property and authorize release of your funds.
9. Do you require a survey?
Sometimes, If needed, the borrower will be informed.
10. Do your make loans on rental property?
Yes, we do loans on rental property.

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