Your Questions Answered

Find quick answers to common queries about partnering with Longleaf Lending.

What is a hard money loan?: A hard money loan is a short-term loan used to acquire and rehab investment properties. Typically, it funds 100% of repair costs and ~90% of acquisition costs.
Why should I use a hard money loan?: Hard money loans offer advantages such as maximizing investor returns by reducing out-of-pocket expenses, providing for faster closes, increasing investor liquidity, and having reduced qualification requirements including credit score.
Why should I use Longleaf Lending?: Longleaf Lending is a balance sheet hard money lender, meaning we fund our deals with our money and do not have to seek approval from other organizations. We do not broker our loans, do not require an appraisal to close (allowing us to close faster than our competition), and our process is designed to be quick and efficient.
Which types of properties do you lend on?: We lend on various property types including single family (1-4 units) and infill land.
How fast can you fund my deal?: We can fund Fix and Flip Loans in as fast as 48 hours provided clear title and diligence requirements are met.
Where do you lend?: We consider deals nationwide and are premier hard money lenders in the state of Texas.
Do you have a minimum credit score requirement?: No, we focus on the property but consider the borrower’s liquidity and experience for our investment decision.
Do you need an appraisal to close?: No. We do require appraisals, but we don’t need them completed to close. This allows us the ability to close in as little as 48 hours.
What are the fees associated with a hard money loan?: There is an origination fee of 2-3 points, a processing fee of $750, a flood certificate of $20, a wire fee of $25, an appraisal fee of ~$500, and a draw fee of $150.
How do I get my loan approved?: To get the funding process started, visit our Loan Request page or call us at 979-200-2823.
How does the draw process work?: Prior to the approval of the deal, the investor will submit a detailed, itemized budget of repairs to Longleaf. After closing, the investor will fund each stage of repairs. Upon completion of each stage of repairs, the investor will submit an itemized draw request to Longleaf. Longleaf will send an inspector to verify the work is completed and of good workmanship quality. After the inspection is complete, Longleaf will refund the investor for the repairs per the itemized budget submitted in the approval process.
Do you have a minimum credit score requirement?: No, we focus on the property but consider the borrower’s liquidity and experience for our investment decision.
Are extensions granted? For how long?: Yes. We will consider extensions provided the loan is in good standing. Extensions typically last 3-6 months.
How is loan value determined?: In cooperation with the investor, Longleaf runs its own comps to arrive at an After Repair Value (“ARV”). Longleaf will determine it’s loan to ARV based on the projects profitability and investor experience. We typically fund 70-75% of ARV.
Will you front repair costs?: We do not front repair costs.
How much do I need to bring to closing?: Typically around 10% of the purchase price. However, we’ll consider any deal based on our history with the borrower and the merits of the deal.
How long is the term of your loans?: Typically 6-12 months, but we can consider cases with longer loan maturities.