Question 1

What is a hard money loan?

Accepted Answer

A hard money loan is a loan acquired through a private lender instead of a traditional bank. Hard money loans are typically asset-based, which means our primary focus when determining a loan amount is the value of the collateral itself.

Question 2

Do you offer 2nd lien position loans?

Accepted Answer

Yes — our Business-Purpose HELOC is a 2nd lien product. All of our other loan programs are 1st lien position only.

Question 3

What is the collateral on the loan?

Accepted Answer

The subject property you are requesting a loan for is used as the collateral, along with a personal guarantee.

Question 4

What states do you lend in?

Accepted Answer

We lend in 48 states. Call us with the property address and we'll confirm immediately.

Question 5

Do you lend on owner-occupied homes?

Accepted Answer

Only through our Business-Purpose HELOC, which can be placed on a primary residence as long as the funds are used for business purposes. Every other program is investment / business-purpose real estate only.

Question 6

What is the minimum credit score requirement?

Accepted Answer

We base our approvals on the quality of the property, the experience of the borrower, and the overall likelihood that the project will be successful. While we do review credit history, it is not the primary component of our decision, and many borrowers with damaged credit are able to be approved. DSCR rental loans generally start at a 580 FICO.

Question 7

Do you require tax returns or W-2s?

Accepted Answer

No. Our loans are business-purpose and asset-based. We underwrite the property, the project and your track record — not your personal income documents.

Question 8

Do I need experience to qualify?

Accepted Answer

Experience helps, especially for fix & flip and new construction. First-time investors can still qualify with strong credit, solid equity and a clear plan.

Question 9

Do you lend to LLCs, or do I need to borrow personally?

Accepted Answer

We lend to LLCs, corporations and trusts. Most of our borrowers hold properties in an LLC. You will sign a personal guarantee.

Question 10

What loan docs are required?

Accepted Answer

At the beginning of the loan process we typically ask for much of the same documentation a bank would require — however, unlike a bank, we don't ask for it to look for reasons to say "no". We use common-sense underwriting to examine the character, experience and capacity of each borrower, and we have flexibility in our documentation requirements. Your online pre-approval letter contains the list of documentation applicable to your loan request.

Question 11

What fees should I consider?

Accepted Answer

No upfront fees. Loan application: $750. Appraisal: $300–$750. Origination fee: 1–3% depending on the loan scenario. A title policy and an insurance policy are required. Extensions are available.

Question 12

What are your rates?

Accepted Answer

Rental (DSCR) loans start from 5.75%, blanket and portfolio loans from 6.50%, business-purpose HELOCs from 6.99%, mixed-use from 7.00%, commercial bridge from 7.75%, and fix & flip and new construction from 8.75% — depending on leverage, credit, experience and property type. Your term sheet shows your exact rate, points and fees.

Question 13

How much can I borrow?

Accepted Answer

Rental (DSCR) loans go up to 80% LTV on purchase and rate/term, and up to 75% LTV on cash-out. Fix & flip goes up to 95% of purchase and 100% of rehab (subject to a combined loan-to-ARV cap), new construction up to 100% of build cost, commercial bridge 80% LTV at DSCR 1.15 ($300K–$30M), blanket/portfolio $250K–$30M, mixed-use $25K–$3M, and business-purpose HELOC $30K–$700K.

Question 14

Are payments interest-only?

Accepted Answer

Yes — bridge, flip and construction loans are interest-only, with interest charged on funds drawn. Rental loans offer amortizing and interest-only options across 5, 7, 10, 30 and 40 year terms.

Question 15

Is there a prepayment penalty?

Accepted Answer

Short-term bridge, flip and construction loans have no prepayment penalty. Long-term rental loans typically carry a step-down prepay, and we can quote reduced or bought-out options.

Question 16

How quickly can you fund a loan?

Accepted Answer

A typical loan can be funded in 5–7 days, and most files close in 14 days or less. Pre-approvals are usually same day.

Question 17

Can I get pre-approved before I find a deal?

Accepted Answer

Yes. Complete our Quick App and we'll give you a pre-approval within 24 hours so you can move fast when you find the right property.

Question 18

How do rehab draws work?

Accepted Answer

Rehab funds are held in escrow and released as work is completed. Submit a draw request to draws@lendingwise.com, we verify with an inspection or photo report, and funds are usually wired within a few business days. There's no limit on the number of draws.

Question 19

What slows a file down?

Accepted Answer

Title issues, missing entity documents, unresponsive insurance agents and incomplete scopes of work. Sending a complete package up front is the single biggest speed factor.

Question 20

What if my deal doesn't fit your loan programs?

Accepted Answer

We'll tell you honestly and quickly. If it doesn't fit, we'll point you in the right direction. We don't string borrowers along.

Question 21

Do you work with brokers?

Accepted Answer

Yes. We don't compete with our brokers — we close their deals fast and pay them well. Brokers get competitive commission payouts on every funded deal, same-day pre-approval, real-time loan status tracking, full document visibility, a dedicated point of contact, and no minimum production requirements. See the broker partner page for details.

Question 22

How do I become a broker partner?

Accepted Answer

Submit the broker application on our Brokers page and we'll set you up with portal access within 24 hours. There's no cost to join.

Question 23

Can I invest with you instead of borrowing?

Accepted Answer

Yes. Our mortgage fund invests in short-term loans secured by first lien mortgages, with target returns of 8–12% and monthly distributions. See the investor page for the full overview.

Got questions? We've got answers.

The basics

Qualifying

Terms, fees & pricing

Timing & draws

Brokers & investors

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