Portland Oregon
Hard Money Loans
As Portland’s hard money lender of choice, we proudly serve Vancouver, Beaverton, Hillsboro, Lake Oswego, West Linn, Wilsonville, Tigard, Tualatin, Oregon City, Gresham, Boring and Sandy.
Why is First Capital Funding, Inc. considered Portland’s hard money lending provider of choice?
First Capital Funding, Inc. is a hard money mortgage broker with numerous lending sources to finance your real estate investments.
What does this mean to you?
It means you can have a single trusted source of financing for acquiring, developing and renovating investment properties. Furthermore, First Capital has you covered with a variety of long-term loan alternatives created to satisfy the requirements of real estate investors when you require long-term financing for a stabilized property.
We discover that real estate investors frequently face complex situations that can make obtaining financing difficult. The specifics of getting ready to submit a loan application vary depending on the circumstances, as well. First Capital has placed loans and funded projects with both hard money and institutional lenders throughout the years, working through endless scenarios with hundreds of borrowers. We rely on our extensive network of seasoned lenders to obtain the finance for your project, and we have a proven track record of effectively resolving even the most challenging financing circumstances.
First Capital Funding, Inc. is a leader in providing hard money financing for real estate investors.
Want to learn more about hard money loans?
Go to our Guide to Hard Money Loans.
Why Choose First Capital Funding, Inc. for hard money financing in Portland Oregon?
Simply put, we know hard money lending. Since its inception in 2013, the company has originated more than 2,500 loans totaling over $2.5 billion. In 2022, the company originated 500+ loans for real estate investors across 23 states.
Many borrowers use First Capital repeatedly to fund their projects. Many clients initially came to FCTD for one loan type, such as a fix and flip loan. Yet, as needs evolved over time, the company was there to help them navigate their new projects with the right financing. The fix-and-flip investor might then move on to rental properties, a second mortgage, new development, a loan for their primary property, and possibly a cross-collateral second mortgage.
Unlike a hard money lender, mortgage brokers are not restricted to a single source of funding. When the capital markets freeze, like they did at the beginning of COVID. At that time, numerous conduit lenders who originate and sell their loans to Wall Street, put a temporary freeze on all fundings. But, in order to keep projects moving forward until the conduit lenders resumed financing, First Capital switched loans to mortgage funds, family offices, and individual trust deed investors.
Even though we aren't always the best choice for borrowers, we know where real estate investors can go for hard money financing to complete their projects.
What are the Advantages of a Hard Money Loan?
Here are some benefits of using a hard money loan whether you're looking to get financing for a purchase, refinance, or cash-out refinance:
- Speed/Closing Time: Hard money loans can close quickly if you have a five-day offer deadline or your bank financing fell through at the last minute. In an emergency, First Capital Funding, Inc. has closed loans in as short as 24 hours; however, the normal closing time is 5 to 14 days.
- Credit Score Not a Significant Consideration (But Still Considered): If you require a hard money bridge loan, the lender will check your credit score to see your credit history and whether you can secure long-term financing to repay the bridge loan. A few flaws are acceptable. Yet, a history of late payments and a number of judgments do not bode well for success.
- Rehab and Non-Stabilized Property Financing: Because of their poor condition, some properties are ineligible for bank financing. Non-stabilized properties could be entirely empty or have high vacancy rates, making them ineligible for bank loans. Hard money bridge loans can assist investors in purchasing properties to renovate or stabilize with long-term tenants in this situation.
What is the Pricing, Closing Costs, Interest Rates, Terms and Other Fees with a Hard Money Loan in Portland Oregon?
Hard money loans in the Portland area often have origination costs of 2-4 points and interest rates between 10 and 13%. The loan's duration might range from three months to fifteen years. Extra costs for drafting loan paperwork for a single investor in a trust deed range from $1,095 for loan documents up to $3,500 for legal services.
Hard money loans don't have a fixed price like conventional mortgages do. Pricing is affected by the particular conditions of each loan.
- Loan Type:
First Capital originates eight types of hard money loans and numerous bank financing programs. The terms and type of loan are influenced by the following factors: - Property Type:
A bridge loan on a single-family home will usually have lower closing costs than a construction loan to build 10 spec homes. - Project Scope:
A cosmetic fix-and-flip project with a $30,000 rehab budget that will be sold in two to three months is much easier than an 18-property cross-collateralized blanket loan against a mix of commercial and residential rental properties. - Funding Source:
There are five different funding sources for private money loans – individuals, real estate offices, family offices, conduit lenders, and mortgage funds. Each has preferences for the property types and scenarios they’ll finance. In turn, their pricing structure will reflect their risk level. - Availability of Capital:
If you have a complicated project, few lenders are willing to take on something with many moving parts, increasing the cost of funds. - Borrower Experience Level:
A first-time house flipper will be required to have a larger down payment, pay more in closing costs, and have a higher interest rate than someone who has bought and sold 20-30 properties every year for the past decade. - Borrower Financial Strength:
Stronger borrowers will have a lower cost of funds than borrowers who are continually defaulting on debt.
For more information on hard money loan pricing, please see our Hard Money Pricing Guide.