Requirements You Need To Qualify For A Hard Money Loan | Riverdale Funding

Requirements You Need To Qualify For A Hard Money Loan

Oct 05, 2016


If you have ever applied for a mortgage with a bank, you know it can be a long and sometimes difficult loan process. It seems traditional lenders want every piece of information under the sun from you for them to confirm who you are as well as analyze your credit worthiness and ability to pay back the loan. Loan applications, minimum credit scores, bank statements, income verifications, borrower and property financials, etc. When you think you have satisfied all of the bank’s requests, you get hit with additional conditions for approval. Even if you meet all of the traditional lender’s strict lending requirements, the process can still feel never-ending.

In contrast, when you apply for a real estate loan with a commercial hard money lender, the loan process is often more streamlined and efficient. Hard money loans require less paperwork and third party reports. This is a welcome change for those who do not have time to go through a lengthy loan process or don’t have the credit or financials to qualify for a traditional loan. Hard Money Lenders are often utilized by those borrowers who do not qualify for a mortgage under traditional lender requirements.


Will I Qualify For A Hard Money Loan?

Some hard money lenders do have similar loan processes to traditional lenders; albeit with less stringent borrower requirements. However, there are also hard money lenders who are asset-based that are primarily concerned with the value of the collateral property over a borrower’s credit history and financials. For hard money lenders, what it all comes down to is the level of risk they are willing to assume.

Riverdale Funding, LLC, a true asset-based hard money lender requires a borrower to only provide a minimal amount of information to apply for a commercial real estate loan. Alongside Riverdale Funding being okay with all credit scores and also not requiring any borrower financial information or income verification – only the following would be required to apply for a hard money loan with Riverdale Funding:


  • Complete a Loan Submission Form

    Provide Riverdale Funding with basic borrower contact information, property information, purpose of the loan, and exit strategy. You will also be asked to provide a short description of your loan request and use of funds.

    This description area is a good place to mention any issues or challenges Riverdale Funding should be aware of regarding the subject property. We’ve been able to provide financing for business purposes to help your business grow, purchase commercial properties, pay back taxes, and improve a property.

    These are just some examples of how Riverdale Funding has been able to help borrowers achieve their financing goals.


  • Interior And Exterior Photos Of The Property

    Riverdale Funding lends in multiple states throughout the United States. In order to expedite each loan request, we request our borrowers and broker partners to submit interior and exterior photos of the subject property. Pictures provided with a loan submission are crucial to the loan approval process. For external photos, it would be ideal to provide a front, rear, sides of the property, as well as street scenes. For the interior, a few images of various room, units, property amenities and ‘good to see’ images would be helpful. Riverdale Funding is an asset base lender, which means how the property shows plays a significant factor in the loan decision process. The more pictures submitted, the better the chances of approval.


  • Rent/Lease Roll And Operating Costs For Commercial Properties

    The income a commercial property generates as well as the cost of maintain the property are important factors in determining the current value of the property. Riverdale Funding utilizes the expertise of MAI certified Appraisers and also Broker Price Options by local realtors to come up with a property’s valuation.


For asset-based hard money lenders, like Riverdale Funding, the hard money loan process is easy.

To apply now or to get more information on our lending programs, contact Riverdale Funding, LLC today and speak with one of our expert representatives.

When other lenders cannot provide you with a loan, Riverdale Funding can.

This article is a part of our Getting a Commercial Loan: Complete Guide, a comprehensive resource for anyone looking to secure a commercial loan. Read more at the link.