Montegra Capital Lending Guidelines Montegra Capital’s lending guidelines are simple and straightforward: Close the Loan for our Borrower! As a Colorado private money lender, we have the money and we make the decisions. You always talk to the person that can approve the request. We have no loan committees. You don’t have to pay extra fees to loan brokers and our fees are the lowest in the hard money loan market. Our goal is to create a win/win outcome.
Hard Money Lending Guidelines: We fund first mortgage secured loans on commercial real estate and residential investment purpose improved properties. We also make first mortgage secured land loans on land that is zoned and entitled. Montegra’s loan amounts range from $250,000 to $2,500,000. We are able to lend up to 75% of loan to appraised value on income properties. Our hard money lending guidelines use fair market appraised value – not “quick sale values” like many of our competitors. You need to be aware of this distinction. Quick sale value frequently is less than 50% of the real value of your property. Our interest rates are at the lowest end of the private capital/hard money spectrum – from 9.50% to 12.00%. Our service is the best in the industry. Montegra is an asset based lender. The value of the collateral property is the most important consideration in our underwriting. If the value of your property compared to your loan request works for us we can almost always fund your loan application. Our loan fees are set between 2% to 4% depending on the type of loan requested and the loan term. Our loan terms are from six months to two years with renewal options for a third year. Be cautious of companies that offer six month loan terms with steep renewal fees every six months which result in very high overall costs. Montegra’s smart buyer loan program helps you purchase properties at below market value. If our appraiser values the property you are buying at over the contract purchase price we can use this higher appraised value to compute the loan to value ratio thus giving you more loan funds to get your deal closed. Banks and institutional lenders do just the opposite and always use the lower of purchase price or appraised value.
Hard Money Loan Information What if my property is only partially leased and does not have adequate debt service coverage? Montegra will consider funding an interest reserve to pay the monthly loan payments until the property has appropriate cash flow. I need to close ASAP. How quickly can you underwrite and close my loans? We typically respond to our loan requests within 24 hours letting you know if we believe we can fund a loan for you. We can close loans in between two to four weeks from beginning work on your request. We do not make claims as some lenders do that we can close in 2 days. Be skeptical of lenders that make claims of this nature. Montegra has a 41 year history and when we make commitments – we keep them. My personal financial statement and/or credit history is not strong enough for bank financing. Can you still consider my request? We are an asset based lender and our primary consideration in underwriting a loan is the value of your property, not your cash flow or credit. My bank is offering to give me a discount on our loan if we pay it off quickly. Do you work with borrowers in this type of situation? This is a very common type of loan for Montegra and we work with borrowers to allow them to take full advantage of this type of opportunity. My property is in foreclosure now or in bankruptcy. Can you consider a loan under these circumstances? We are open to working with borrowers under either of these circumstances to help them save their property. I am not used to working with hard money lenders. How do I go about this and how do I know I can feel comfortable that I will receive the kind of loan that makes sense? Montegra’s 41 year history as the leading Colorado hard money lender speaks for itself. We will provide bank, attorney, or even existing borrower references to help you do your due diligence on us. We strive to be the most user friendly source of private capital in Colorado and go to great lengths to work with our borrowers to help them through our process. Because you always work with the decision maker, there is no red tape involved and no room for misunderstandings or delays. Call Montegra at (303) 377-4181 or visit the website for more information: http://www.montegra.com/lending-guidelines/