faq

What type of properties do you lend on?

We provide loans for the purchase and rehab of non-owner occupied residential, mixed use, and select commercial investment properties. We also provide loans on a select basis for the acquisition and development of land for residential ground-up construction investment properties.

Eligible residential properties include non-owner occupied: single family residence (SFR), 2-4 unit residential, multi-family apartment buildings, condominiums, and townhouses.

Mixed-use properties include buildings that contain both residential and commercial space where the residential space is greater than 50% of the property square footage.

What areas do you lend in?

In NY: All boroughs of NYC, Nassau & Suffolk Counties, Westchester County, Rockland County, Orange County, Putnam County, Dutchess County, Sullivan County, Ulster County, Columbia County, Greene County, Albany County, Rensselaer County, Schenectady County and Saratoga County

In NJ: All counties

In Connecticut: Fairfield County, New Haven County, Middlesex County, and Hartford County

In Pennsylvania: Bucks County, Berks County, Chester County, Delaware County, Lehigh County, Northampton County, Montgomery County, and Philadelphia

In Rhode Island: All counties

In Massachusetts: Boston, Suffolk County, Essex County, Middlesex County, Worchester County, Norfolk County, Plymouth County, Bristol County & Barnstable County

Washington DC & surrounding Virginia area

In Maryland: Baltimore, Montgomery County, Prince George's County, Baltimore County, Anne Arundel County, Howard County, Harford County, Frederick County, Carroll County, Charles County, Washington County, St. Mary's County & Cecil County

In Florida: Miami-Dade County, Broward County, Palm Beach County and Collier County

HSC will lend in other areas on a case-by-case basis.

Do you lend to individuals?

All our loans are typically made to a borrower's LLC or Corporation. Borrowers will usually purchase the subject investment property for the loan under their LLC or other corporate entity and the loan will be issued to that entity. For refinance loans, the property's title can usually be transferred to your LLC at loan closing, if the property is already in an individual borrower's name.

How fast can you close?

We typically close loans within 2-3 weeks, but we can close faster if all documents are in order.

Do I need experience to get a loan?

While prior real estate investment experience is beneficial, we also lend to first time real estate investors.

Do you require a personal guarantee?

Most of our loans require a personal guarantee from the principal.

Will you make a 2nd mortgage loan on a property?

We only make 1st lien position loans, though we can often pay-off a borrower's existing loan and provide the borrower with a new loan and cash-out.

How much will you finance for an investment property purchase?

Each property loan is different, but we will typically lend up to 70- 85% of the purchase price and up to 100% of the rehab cost, up to a maximum of 65-70% of the after-repair value (ARV).

Do you fund rehab and construction costs?

Yes, we will typically finance up to 100% of your rehab and construction costs.

Do you have a pre-payment penalty?

We do not typically have a pre-payment penalty on bridge loans, but long term rental loans will often have a pre-payment penalty during the first few years of the loan. We can work with borrowers to adjust this to a time period that makes the most sense for the borrower.

Do you lend for new or ground-up construction?

Yes, but only to experienced investors and builders.

How long does it take for you to make a preliminary decision?

We can often give you a preliminary decision over the phone after a brief conversation with a loan specialist or after receiving a loan submission form.

What type of loans do you offer?

We offer bridge loans for the purchase or refinance of an investment property as well as for rehab & construction costs. These are typically interest only, one year bridge loans, with no pre-payment penalty. We also offer 30 year rental loans with fixed-rate and interest-only options, for a single rental property or a portfolio of rental properties. All our loans are for non-owner occupied investment properties only. Please see our loan programs for more details.

Will you refinance a property I already own?

Yes, we can refinance your current loan and/or give you cash-out on a property you own free-and clear.

Can I borrow money on a property I already own to buy a different property?

Yes. We can typically offer you a number of financing options.

Can I finance my closing costs?

Yes, we often have the ability to roll a borrower's closing costs into their loan if they prefer.

Do you have interest only loans?

Yes, most of our bridge loans are interest-only loans with the principal due at maturity. Interest-only options are often available for our long term rental loans as well.

Do I have to make monthly interest payments?

Depending on the loan-to-value (LTV) we can often provide borrowers with an interest reserve option if they prefer not making regular monthly interest payments.

How do I start the loan process?

Call us, email us or Apply Now with our quick preliminary qualification form where we will start reviewing your deal and call you back quickly to go-over the details of your project.

What type of borrower information are you looking for to start the loan process?

We will do a quick call with you to understand the basics of the property, construction and type of loan you are looking for, as well as your prior real estate investment experience.

We also pay close attention to understand your financing needs so that we can provide the optimal loan and terms for each borrower.

Once we discuss some of the basic information of your deal with you, we will typically give you a preliminary decision on if your project meets our loan criteria and expected loan terms. We can also answer any questions you may have about the loan process.

Do you charge any fees before loan closing?

We don't typically charge any fees before loan closing and there are no out-of-pocket expenses during the pre-approval process.

Once you are ready to move forward with a loan, we will order an appraisal for your property. This is the first step toward closing your loan. You will need to pay for the appraisal before closing.

Do you charge interest on the full value of a construction loan?

Most of our loan programs don't charge interest on undrawn loan balances until they are drawn.

Do you have a minimum credit score for a loan?

We require a minimum credit score of 650 for our Fix-and-Flip and bridge loan program and a 680 for ground-up construction projects. Our long term rental loan program requires a minimum 660 credit score.

HSC may consider lower credit scores on a case-by-case basis.

Do you offer extension on your loans?

Yes we can typically offer 3 or 6 month extensions on our bridge loans if the loan is in good standing.