Q: What type of collateral is needed for a hard money loan?

A: The hard money loan is for real estate only, and must be in the first lien position secured with a Deed of Trust and insured with a Lender’s Title policy. We do not lend on primary residences.

Q: Is this loan a brokered loan?

A: No, this loan is funded by Park Place Finance and can be closed, if necessary, in a matter of days from the initial loan request.

Q: What is the hard money loan duration?

A: The hard money loan term is generally 12 months, but can be up to 24 months, with the option to extend when requested.

Q: Will I need to provide appraisals?

A: Park Place Finance requires an appraisal on most transactions, and is able to get appraisals back in 3 business days generally to ensure we close in as little as 5-7 business days. However, there are certain exceptions where we can skip the appraisal process 

Q: What is the maximum loan-to-value (LTV)?

A: We lend up to 80% of the acquisition price, and can finance up to 100% of the repairs, as long as we are financing below 75% of the after repair value. We do not finance closing costs on the purchase, but can on refinance and cash-out loans.

Q: Can an Interest Reserve Account be built into the loan?

A: Yes, an Interest Reserve Account can be built into the loan so that all, or some, monthly payments will be deducted from this account until depleted or until the loan is paid off. Any unused portion of the Interest Reserve Account will be credited to the Borrower on loan payoff 

Q: What is the minimum FICO/credit score?

A: Park Place Finance requires a 680 credit score for at least one of the applicants. All tax liens over $10,000 must be satisfied at or prior to closing.

Q: Is there a prepayment penalty?

A: No, Park Place Finance does not have a prepayment penalty on any of their bridge loans.