Montegra strives to maintain simple and straightforward lending guidelines that focus on one goal: closing the loan for our borrower. As a Colorado-based, private capital lender, Montegra controls the funds and makes the decisions here in house. Borrowers can rest assured that they will always talk directly with a Montegra representative who can approve their request. Montegra doesn’t have loans committees and borrowers don’t have to pay extra fees to loan brokers or other middlemen. Montegra offers the lowest fees in the hard money loan market because our goal is to create a win/win outcome for both lender and borrower.
Montegra’s Hard Money Lending Guidelines:
Montegra funds first-mortgage-secured loans on Colorado commercial real estate properties as well as investment-purpose residential properties and undeveloped land that is zoned and entitled.
Montegra offers loans ranging from $250,000 to $4,000,000 and is able to lend up to 65% of the loan-to-appraised-value on income-producing properties. As part of our guidelines, Montegra uses fair market appraised value, not “quick sale” values that many other hard money lenders use. This distinction can have a huge effect on your loan amount as “quick sale” value is frequently less than 50% of a property’s real value.
Montegra’s interest rates are at the lowest end of the private capital/hard money lending spectrum—typically from 10 to 11.5%. And our customer service is the best in the industry.
Montegra is an asset-based lender, so the value of a borrower’s collateral property is the most important consideration when it comes to underwriting a loan. As long as the value of a borrower’s property compared to his or her loan request is reasonable and within Montegra’s guidelines, it is almost always possible to fund the loan application.
At Montegra, our loan fees are typically between 2 and 4%, depending on the loan terms and the type of loan requested. Montegra’s loan terms are from six months to two years with the option of renewal for a third year. Borrowers should be wary of any lending company that offers six month loan terms with steep renewal fees every six months thereafter as this results in very high overall loan costs.
Montegra also offers a smart buyer loan program that helps borrowers purchase properties at below-market value. If Montegra’s appraiser values the potential property at a value above the contract purchase price, this higher appraised value can be used to compute the loan-to-value (LTV) ratio, thus providing the borrower with more loan funds to close the deal. This practice is the opposite of what banks and lenders will do, as they typically choose the lower of the two (purchase price versus appraised value).
Hard Money Loan FAQs:
What if my property is only partially leased or does not have adequate debt-service coverage?
Montegra may be able to provide an interest reserve as part of the initial loan amount to pay the monthly loan payments until the property is income-producing with a steady cash flow.
I need to close ASAP. How quickly can Montegra underwrite and close my loan?
Montegra typically responds to loan requests within 24-hours, letting you know whether we believe it will be possible to fund your loan. Montegra can usually close loans in two to four weeks from the time work begins on your request. You should be skeptical of lenders who promise to close in a matter of days. Montegra has 44 years of experience funding hard money loans, so you can rest assured that when Montegra makes a commitment, we stand by it.
My personal financial statement and/or credit history are not strong enough to qualify for bank financing. Will Montegra still consider my loan request?
As an asset-based lender, Montegra’s primary consideration in underwriting loans is the value of the collateral properties, not your cash flow or credit score.
My bank is offering to discount my loan if I pay it off quickly. Does Montegra work with borrowers in this type of situation?
Montegra frequently deals with such situations and is able to work with you to fund a loan that will allow you to take full advantage of this type of opportunity.
My property is currently in foreclosure or bankruptcy. Will Montegra consider funding a loan in this circumstance?
Montegra is open to working with you under either of these circumstances to enable you to save your property.
I am new to dealing with hard money lenders. How does the hard money lending process work and how can I know that I will receive the kind of loan that makes sense for my situation?
Though Montegra’s 45-year history as a leading Colorado hard money lender speaks for itself, we will gladly provide bank, attorney, and existing borrower references to assist you in conducting due diligence on our company and lending track record. Montegra strives to be the most user-friendly source of private capital in Colorado and goes to great lengths to walk our borrowers through each step of our lending process. Montegra promises that you will always work directly with the decision-makers for your loan so that there is no red tape and no room for misunderstandings or delays.