SOFT MONEY LOAN PROGRAMS & NO DOC COMMERCIAL REAL ESTATE LOANS

All about Soft Money Loan Programs for Real Estate Investors.

When it comes to providing real estate investors flexible funding opportunities with a soft money loan, our loan process is powered by the dedicated team at Stratton Equities.

 

Run by a team of experienced real estate investors and loan officers, Stratton Equities knows how important it is to expedite the financing needed for your real estate endeavors. We offer borrowers soft money loans on both commercial and investment properties.

When it comes to providing real estate investors flexible funding opportunities with a soft money loan, our loan process is powered by the dedicated team at Stratton Equities.

 

Run by a team of experienced real estate investors and loan officers, Stratton Equities knows how important it is to expedite the financing needed for your real estate endeavors. We offer borrowers soft money loans on both commercial and investment properties.

NO-DOC Soft Money Lending

 

A Soft Money Loan is a NO-DOC (no documentation) loan program, which establishes loan qualification on the value of the real estate investment property and the borrower's credit history and cash flow. Only Real Estate Investors with high credit scores (over 650) are eligible. 

 

This makes NO-DOC soft money lending the perfect solution for real estate entrepreneurs who may have trouble qualifying for a conventional loan with a bank.

A Soft Money real estate loan is amortized over 30 years. Whether it's a commercial real estate soft money loan or a soft money rental loan, this type of loan product benefits borrowers who do not have the ability to go to the bank due to their documented income, closing timeline, and employment history.

 

Where the banks say “No”, the soft money and private money lenders like Stratton Equities can still say “Yes”.

Unlike the long and frustrating process of bank mortgages or conventional loans, which can take up to forty-five days or longer, Stratton Equities can approve your soft money loan and provide you with funds in an average closing time of 21-35 days. We are here to quickly assist you every step of the way.​

 

Nationwide Property Types for Soft Money Loans

Stratton Equities can provide a soft money loan for the following property types:

- Single-Family

- Mixed-Use 

- Multi-Family

- Commercial

If you've found an investment property and are interested in applying for a loan or speaking with one of our loan officers to discuss your loan scenario and our soft money loan rates, Apply for Loan now!

The Difference Between Term Loans & Bridge Loans

There are many things to take into account when you invest in real estate. One of the key ones is what type of loan to take out. Whether it is a bridge loan or a term loan, you need to be aware of which one fits your needs and financial situation the best. 

 

Soft Money Loans fall under the category of term loans because they are usually offered through a bank or mortgage company. Also, soft money loans are dependent on the borrower's credit score and property LTV (loan-to-value) rather than their income. A term loan generally implies an unfixed interest rate will add additional balance to be repaid. 

 

Unlike a lot of loans, term loans come with lower interest rates, as low as 6%. It also has greater security, tax-deductible, and boosts credit score. At the same time, One thing to consider when getting a term loan is whether the interest rate is fixed or floating. A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the set-rate period of the loan. 

 

This makes it possible for a borrower to accurately predict future payments. A floating interest rate is also called a variable or adjustable rate. They are debts such as a loan, bond, mortgage, or credit, which have no fixed interest rate.

 

Hard Money Loans are a type of Bridge Loan, these short-term loans allow you to put a contingency-free offer on an investment property. 

 

They are usually 3 to 6 months long but can be longer depending on the situation. For real estate investing, one would use a bridge loan when they are looking to invest in a new property but haven’t sold their previous property. So, borrowers are using the equity from their current property as a downpayment for the purchase of a new property. What bridge loans do is bridge the gap between payments, they roll the mortgages of two houses together, thus giving the investor breathing room and flexibility as they wait for their old property to be sold. 

Since they are short-term, bridge loans usually have higher interest rates than term loans. They are also sometimes more difficult for investors to obtain. Lenders only offer real estate bridge loans to borrowers with excellent credit ratings and low debt-to-income ratios. Before taking out a bridge loan, there are certain things you need to take into consideration. These types of loans seldom come with protections for the borrower if the sale of the old house falls through.

 

In such a case, the lender could go as far as a foreclosure on the former property following the expired bridging loan extensions. Given this risk, it is very important to carefully consider what you can afford and how fast houses sell in your market before taking out a bridge loan. 

Bridge loans have a faster approval process than traditional loans. They are great for when an investor requires fast and convenient access to funds. Investors who take out these loans are willing to accept the high interest rates, as they know the loan is short-term and have the plan and assets to pay it off. They are an excellent type of loan for short-term real estate investing. 

Unlike bridge loans, a term loan is a long-term loan between a borrower and a lender.

 

The lender supplies money upfront and receives this money back through a series of small payments over a certain period of time. The intervals could be biweekly or monthly, over a specified period.

 

Term loans usually last between one and ten years but may last as long as 30 years in some cases.

Are You First Time Real Estate Investor?

You're in the right place! Stratton Equities helped thousands of first time real estate investors and experienced borrowers on their investment properties.

Our team of loan officers will walk real estate beginners through the entire loan process to  ensure you're well informed about soft money lending.

As a NO-DOC soft money lender and NON-QM private money lender, we are fully equipped to help you with all real estate investing goals.