Loan FAQs
Does the loan have a prepayment penalty?
No
Will you extend the loan term if needed?
We are committed to help you with your real estate project. If you are performing, and need to extend your loan its usually is fine. Our initial loan term is usually 3 months (sometimes longer) in order to give you enough time to fix and flip your project but with time overruns its common to do extensions until you can sell or exit the project.
Do you lend purchase price or appraised value?
We lend on the current value of the property and not the after-repaired-value. Thus, if you purchase a property far under its current value, we WILL LEND YOU 100% OF THE PURCHASE PRICE. Each project is different so its recommended to email, call or fill out a quick application online to see exactly how we can structure your deal.
What types of properties will you lend on?
Arrow Bridge Capital Group lends on all types of residential investment properties. Common property types are: Single-family residences, 1-4 unit properties.
Do you work with or compensate loan/mortgage brokers?
Yes. Since we charge zero points Brokers typically add points. Brokers are protected and are welcome to add points to the closing process. A large amount of our loans come from Brokers all around the country and we work with them to help structure the best loan for their clients.
Can I get a loan if I have a low credit score?
Yes, Arrow Bridge Capital Group generally will not pull credit. Personal credit score is not a primary factor in our lending decisions. Unlike traditional lenders, we focus more on the property’s current value and equity than the borrower’s credit score. However, we may ask the borrower for a credit reports to assess financial responsibility, past bankruptcies, or outstanding debts. A higher credit score can sometimes lead to better loan terms, lower interest rates, or reduced down payments, but even borrowers with low credit can still qualify and have a solid investment plan (have the ability to execute/perform on their project).
Is there a limit to the number of deals that I can buy?
No. Each deal stands on its own. If it makes good loan sense, you will get the loan regardless of how many properties you own. We have clients that we have multiple outstanding loans with at any time.
How much money do I have to put in the deal?
The down payment for hard money lenders typically ranges from 10% to 40% of the property’s purchase price. Arrow Bridge Capital Group down payment range from 0% down to 30% down payment. The exact amount depends on the overall project, the borrower’s creditworthiness, experience, and overall property current value. We focus more on the overall project than the borrower’s credit history.
Do you allow secondary financing or seller-held notes?
Yes. As a first mortgage holder, the Arrow Bridge Capital Group’s capital will be the first amounts paid back upon foreclosure and, thus, we usually don’t care about a second note holder.
Do you order an appraisal?
Typically Arrow Bridge Capital Group does not order appraisals, mostly because the time it takes to get them back and we try to close our loans very quickly. Most hard money lenders (including Arrow Bridge Capital Group) that use private capital don’t require a standard appraisal. However, we do use a broker price opinion (BPO), an internal valuation, or a comparative market analysis instead of a full formal appraisal.
How quickly can you close?
One of the best things about an Arrow Bridge Capital Group loan is the speed at which you can get one. Approvals are typically granted within 24 hours and settlements can take place in about a week. Remember, however, that we have due diligence and underwriting to conduct depending on the overall project. This may include: property inspections, order and inspect title work, and have lender documents drafted. This could take anywhere from one day to a few days depending on the circumstances but, in a rush situation, we may be able to speed up the process to accommodate you.