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Frequently Asked Questions, Below is a list of the
frequently asked questions on how we help clients.
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General
What is a hard money loan?
A short-term, asset-based loan secured by real estate. Approval is primarily based on the property's value — not your credit or income.
Who uses hard money loans?
Real estate investors who need to purchase, renovate, or build properties quickly, especially when traditional financing isn’t fast or flexible enough.
How fast can I get funded?
You can close in as little as 2–7 days, making it ideal for time-sensitive deals like auctions and hot market opportunities.
Do I need perfect credit?
No. We focus on the property and deal potential, so you can qualify even without excellent credit.
What types of properties can I finance?
Single-family, multifamily, fix-and-flips, rental portfolios, and ground-up construction.
How much can I borrow?
It depends on the property's value and the project details. Loan amounts are based on loan-to-value (LTV) ratios, with a maximum of 70% LTV.
What are typical loan terms?
Terms usually range from 6 to 24 months, with interest-only payments to keep cash flow flexible.
Do I need to make monthly payments?
Yes — typically interest-only payments, with the principal due at the end of the term.
What documents do I need?
A purchase contract, scope of work (if applicable), proof of funds for down payment and closing, and basic personal or business documents.
How do I get started?
Contact our team for a quick consultation and pre-qualification. We’ll guide you from application to closing.
Fix and Flip
What is a fix & flip loan?
A short-term loan designed to help investors buy, renovate, and resell properties for a profit.
How is it different from a traditional mortgage?
These loans are short-term and based on the property's after-repair value (ARV), not your personal income.
Who can benefit?
Investors looking to buy distressed or undervalued properties, renovate them quickly, and sell for a return.
How fast can I get funded?
As fast as 2–7 days, so you can act on deals before the competition.
How much can I borrow?
Based on purchase price, renovation costs, and ARV. Each project is evaluated to maximize leverage, with a maximum of 70% LTV.
Do I need good credit?
Not necessarily. The property and deal strength matter most.
What are typical terms?
Usually 6–12 months, with interest-only payments and a balloon payment at the end.
Do I need a renovation plan?
Yes — a detailed scope of work with budget and timeline is required.
What are the costs?
Interest, points (origination fees), closing costs, and possible appraisal or inspection fees. We provide transparent fee breakdowns upfront.
How do I get started?
Contact us to review your project. We’ll handle the process so you can focus on the renovation.
DSCR Loans
What is a DSCR loan?
A loan based on the property's rental income instead of your personal income.
What does DSCR mean?
Debt Service Coverage Ratio — it measures if the property’s net income covers loan payments. A DSCR above 1.0 means positive cash flow.
Who should consider this?
Investors buying or refinancing income-producing rentals (long-term or short-term) without using personal income verification.
Do I need tax returns or job verification?
No — approval is based on rental cash flow.
What properties qualify?
Single-family, multifamily, short-term rentals, and some mixed-use.
How is the loan amount determined?
Based on appraised value and rental income to ensure debt coverage.
Minimum DSCR required?
Typically 1.0 or higher.
What credit score is needed?
Around 660 or higher. Better scores may get improved rates.
Typical terms?
Up to 30 years, with fixed or adjustable rates.
How to get started?
Reach out to evaluate your property's cash flow and get tailored financing options.
Transactional
What is transactional funding?
A short-term loan for same-day, back-to-back closings (A-B, B-C) — often used by wholesalers.
Who uses it?
Wholesalers needing to buy and immediately resell without using personal funds.
How long is it held?
Typically for just one day, with both closings occurring at the same title company.
Are there monthly payments?
No — it’s repaid in full the same day from the end buyer’s funds.
Do closings need to happen at the same title company?
Yes, for compliance and a smooth transaction.
Requirements to qualify?
A signed contract with the seller (A), a signed contract with your buyer (C), and proof of your buyer’s funds. No credit or income checks needed.
Do I need to bring cash?
No. Funding covers the entire A-B purchase price.
How much can I borrow?
Based on the A-B purchase price. There’s usually no strict minimum or maximum — each deal is case-specific.
What are the fees?
Typically 1%–2% of the A-B price, depending on deal size and complexity.
How do I get started?
Submit your signed contracts and end buyer details. We’ll review quickly and provide same-day funding.
Ground Up
What is a ground up construction loan?
A loan to buy land and build a new property from the ground up, covering everything from dirt to finished structure.
Who is it for?
Investors and developers building rentals, custom homes, or resale properties.
Can I finance land and construction?
Yes — both are included in one package.
How are funds disbursed?
In stages (draws) based on construction milestones.
What documents do I need?
Land purchase contract, scope of work, architectural plans, permits, insurance, proof of funds, and basic borrower info.
Required credit score?
Typically 660 or higher.
Do I make monthly payments during construction?
Yes — usually interest-only on drawn funds.
Typical term length?
About 12 months, with possible extensions.
What happens after completion?
Refinance to a rental loan, sell, or hold as a finished asset.
How fast can I get approved?
Once documents are in, approvals move quickly so you can start building without delays.
Ready To Fund Your
Next Deal?
Get pre-approved today and close in as little as 7-10 days. Freedom Lending is your fast and friendly asset-based lender.
At Freedom Lending, we believe lending should be built on integrity, honesty, and transparency. Every client relationship is guided by trust, clear communication, and a commitment to helping you move forward with confidence.
Whether you're funding your next investment or growing your real estate portfolio, Freedom Lending is your pathway to financial freedom.
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