Team 3 Financial FAQ's
What is the difference between a conventional and a private hard money loan?
A hard money loan differs from a conventional loan that one may acquire through a bank. One of the most important distinctions of a hard money loan is that the equity in your property is more important than your credit score. Private lending has none of the bureaucratic obstacles that delay closings and funding. Private hard money lending accommodates fast closings, expedient construction inspections and draws, and flexible solutions. We also offer optional loan extensions on loans in good standing during stable market conditions.
What does Loan-to-Value (LTV) mean?
Loan-to-Value is the relationship between the value of the property and the loan on the property
How long does it take for you to approve loans?
We can approve loans in as quick as five business days as long as all legal/contractual documentation is complete. Some loans can take longer to be approved if caused by incomplete applications, insufficient documentation, etc.
How quickly are construction draws released?
Draw inspections are usually made within 48 hours of the request. Once the inspection is complete, we typically disburse funds within 24 hours.
Is my credit score important?
Because we are principally an asset-based lender, we do not have specific requirements for high FICO scores. Nevertheless, we require a credit report with a 600+ FICO score. If your credit score is below 600, you may be approved for your loan solely based on the equity in the property and the amount of equity you are willing to invest, which shows us your commitment to the property and its success.
Where does Team 3 Financial lend?
We lend in New York, New Jersey, Connecticut and Pennsylvania.
Do you provide loan extensions?
We provide extensions up to 3 – 12 months on a case-by-case basis as long as your loan remains in ‘good standing’ with us. We are generally happy to extend your loan depending on the current LTV, credit and market conditions.