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A Soft Money Loan is an exciting and innovative program that real estate investors utilize for their investments.

A soft money loan requires more underwriting than a hard money loan, allowing it to have lower rates and greater security. It is based on both the borrower’s credit score and the property’s LTV, and is always a term loan rather than a bridge loan.


In the context of lending, the term ‘soft money’ implies that this type of loan falls somewhere between a hard money loan and a traditional mortgage. 

Soft Money Loan Overview

  • Rates Starting at 6.74%

  • $100K – $5M

  • Up to 85% LTV

  • Blanket Loan Options Available

  • Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse

  • Fixed rates/Adjustable

  • 5/1 ARM, 7/1 ARM, 30 Year Fixed 

  • Interest Only Option Available

  • Foreign Nationals Eligible

  • No Prepayment Penalty Option Available

What is a Soft Money Loan exactly?


Soft Money Loan combines the speed and flexibility of Hard Money Loans with the greater security of a Conventional Loan. This type of loan combines elements of a NO-DOC loan with the borrower’s Credit Score (over 650 eligible) and some underwriting. NO-DOC Soft Money loan financing is based on the Loan to Value (LTV) of the investment property.


A Soft Money is always structured in the form of a Term Loan, which is long term financing in a period of  5/1 ARM, 7/1 ARM and amortized over 30 years.


Why is Soft Money Beneficial for Real Estate Investment Properties?

Soft Money Loans are a safer loan option than a Hard Money Loan for investors, but are still a flexible and speedy option for investment properties.  The combination of lower rates, credit building, and a longer time frame makes the soft money loan a better fit than a hard money loan for many borrower’s situations, particularly those interested in investing in a commercial or a more long-term investment property. 

Unlike conventional investment property loans that max out at 70% LTV, a NO-DOC Soft Money Loan Program maxes at 85% LTV and with no PMI. This allows the borrower to put less money down on their purchase.

How to utilize a Soft Money with a Private Lender


While the hard money loan is still the preferred option for many real estate investment scenarios, a soft money loan has increasingly become the loan used by first-time real buyers and real estate investors with a good credit history who are looking for lower rates.

Stratton Equities funds soft money loans on single-family, multi-family, mixed-use, and commercial - real estate investment properties. 

A soft money loan is an asset-based loan that combines the benefits of hard money loans with lower risk, higher rates, and a term loan time-frame - soft money loans fit many borrowers far better with lower costs, lower rates, and longer terms (5/1 ARM, 30 year fixed).


The interest rates on soft money loans are usually higher than those of traditional qualified mortgages. 


Interest rates for soft money loans range anywhere from 5.25-5.99%, and Stratton Equities’ library loan products offer real estate investors the best rates in the mortgage industry. 


Direct private money lenders usually charge higher interest rates due to the greater risk associated with these loans, and the incredible speed in which they are able to process and fund transactions. 


Soft money loans are longer term (5/1 ARM, 30 year fixed) loans and are the best opportunity to aid any real estate entrepreneur in developing their success.

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 soft money lender and private money lender, we are fully equipped to help you with all real estate investing goals.