Capella Mortgage announces that their two new $100 million funds are ready to lend on hard money, soft money, construction, development, rehab, short term and longer term loans. This means that Capella Mortgage will be able to close faster, fund faster and make lower interest rate loans for particular types of loans. For example, borrowers with good credit, low LTV, A+ properties, who need a hard money loan because they don’t fit into the bank boxes, are eligible for funding from Capella Fund I with rates starting at 7.99% and going up to 10.99%.
Capella Fund I and the Capella Opportunity Fund are able to lend to the following:
- owner occupants and investors
- on commercial and residential property
- with short term, medium term, and long term loans available
- on low LTV’s, high LTV’s, and super high LTV’s (for rehab/construction, etc.)
The only difference between owner occupied loans and investor loans is that owner occupants must be given at least a 5 year balloon, and the maximum interest rate is 6.5% over the APOR, which as of June, 2019, would be a max of 10.5%. Owner occupants must still qualify on income, whether by bank statements, tax returns, W2’s only, or paystubs only, although there are a few stated and no- income loan products available in the marketplace. Capella Mortgage lends to foreign nationals and makes ITIN loans. Capella Mortgage can also broker to other lenders who offer better programs. Capella Mortgage will never automatically assume that you don’t qualify for other loan products. They ALWAYS do a full interview, and analyze your situation, and then recommend what is best for you and if that means sending you to another lender, that is what they do.
Many times a borrower is referred to Capella Mortgage by their realtor or their loan officer because they realize that a private money solution is needed. Because of their expertise and time in the business, when a realtor or loan officer says “Call Capella Mortgage” there is a good chance that private money is the best option.
Many people make the mistake of believing that only credit-challenged borrowers get hard money. It is actually the opposite. In order to get a hard money loan, you must have larger than normal amounts of money available for down payment or renovation costs (much more than the FHA 3.5% or Fannie Mae 3%). Or you must have an asset, like a house, with lots of equity (cross-collateralization loans). Your money may not be in the bank or it may be scattered among a lot of different banks; or your funds may not be sourced or seasoned per traditional guidelines, so it will be very difficult to get a loan from a bank or traditional lender. Plenty of people don’t trust banks, or it might be against your culture to trust banks, but that doesn’t mean that there isn’t some type of loan for you. As long as Capella Mortgage finds your situation logical and appropriate for your type of business or lifestyle, then they can make the loan.