We base your borrowing power on the value of the property and your credit, so we don’t need proof of income, tax returns, or bank statements to make you a loan

Do you qualify for hard money? If you’ve been through the traditional lending process on your personal home or another investment property, you know that it goes on forever and eventually starts to feel like they can’t possibly ask for anything else. And then they come back and ask for another month’s worth of statements. And then further documentation about a deposit you made 2 months ago.

Qualify for hard money with the real estate, not the person

We’re a true asset-based lender, so you might be surprised by the documents that you don’t need to submit to get a loan from a hard money lender. We do NOT need any proof of income, your tax returns, W2s, or bank statements. Seriously! You can qualify for hard money without any of these documents.

We require a personal financial statement, aka PFS, but only for larger loan requests. A PFS is a personal balance sheet that details all your assets and liabilities. Hard money lenders may ask for supporting documentation on a case-by-case basis, but it’s typically very minimal compared to a traditional bank lender. 

Most of what we need from you, other than the online application and PFS (if required), is related to the property. You’ll need to send us the contract with all amendments, a survey (must be accepted for survey coverage by the title company), a W9, and corporate documents if you’re using an entity. 

Apply and then what…

Once you fill out the application, we aim to get back to you with a term sheet within 1 business day. Our term sheet will detail what we expect to be able to lend you based on your estimate of the property value and your credit. It will also detail all the costs of the loan, your interest rate, and everything else you need to know. If you accept and we move forward, we will determine a final value for the property and a firm loan offer. You’ll know within a day whether you qualify for hard money from Little City Investments.

As you may be aware, a hard pull on your credit can ding you and it could remain on the report for 2 years. We only do a “soft pull” to prepare your term sheet. This does NOT affect your credit. We won’t do a hard pull on your credit until and unless you accept our loan terms and decide to move forward on a hard money loan with Little City.

What would disqualify someone? 

Credit rating below 550. Recent foreclosure or bankruptcy. Any history of fraud, ever. Other serious criminal history. Multiple, recent late payments. Some projects require experience, but this is a case-by-case consideration. Typically for a loan under $500k no experience is required, although it will improve your rate. If none of the above apply to you, you will very likely qualify for hard money loans.

Typical documents to qualify for hard money from Little City:

 Typical documents to provide for a bank loan: 

  • Their very long loan application
  • Insurance for the property you’re financing
  • Personal financial statment and supporting documentation
  • Insurance for all properties you have an ownership interest in
  • W2s for 2-3 years
  • Tax Returns for 2-3 years
  • Bank statements for 2-3 months + explanations and copies of checks for certain types of transactions
  • Proof of assets and asset values including deeds, titles, and other documents
  • Modifications and extensions for any outstanding loans – related to the property or not
  • HOA statements for every property you have an ownership interest in
  • Mortgage statements for every property you have an ownership interest in
  • Pay stubs and/or other proof of income
  • Full employment history with positions, addresses and phone numbers
  • Brokerage statements for all accounts including retirement accounts, CDs, IRAs and other
  • Divorce decree(s), any related documents
  • Proof of income including social security, disability, alimony and child support
  • Proof of sale of previously owned properties or assets
  • Documentation for recent gifts
  • Proof of rent payments, if applicable
  • Letters of explanation for any credit issues, if applicable
  • Life insurance documentation, if applicable
  • If you have rental property, you’ll need to provide copies of leases, proof of rental income, appraisals or BPOs, and documentation of expenses
  • Documentation of debt from credit cards, student loans, personal loans, auto loans or medical/other bills
  • Proof of job-related expenses, if applicable
  • Immigration documentation, if applicable

Every single one of those points above are a potential failure point for your deal. As you can see, Little City Investments is a low document lender, especially compared to a bank. And while our interest rates may be higher, there are far less potential pitfalls to qualify for hard money loans.

Little City Investments wants to be your go-to hard money lender. We fund purchase, rehab, refinance and land loans across Texas. We are a true, low document, direct hard money lender. 

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