ASSET-BACKED LOANS
A loan sized on the equity in the property rather than on the borrower’s income. Every bridge product on this site is underwritten that way: the property, the equity and the exit carry the file.
BRIDGE LOANS
© LEARNING HUB 16 SITUATIONS
HARD MONEY LOAN SCENARIOS
Sixteen situations, and the loan that fits each one
© LOAN SCENARIOS 16 SITUATIONS
TEN SITUATIONS, TEN PAGES
Most hard money loans are not about the property type. They are about a situation: a 1031 clock that is running, a listing that will only take cash, a trustee’s sale that funds the same day, a borrower whose tax returns do not tell the story. The ten pages below take the situations investors bring to Loan Goat most often and show how a hard money or non-QM loan solves each one, with the published program terms where a Loan Goat product covers it. Six more situations follow as short entries pointing to the nearest program.
- 1031 EXCHANGE Short-term bridge loans that close the replacement property inside the 45 and 180 day windows, forward or reverse.
- CASH OFFERS ONLY Listings that will not take financing: REO, probate and unpermitted properties, and how hard money competes with cash.
- FORECLOSURE AUCTION Trustee’s sale financing: cashier’s checks, same-day funding and the cash-out refinance that follows the win.
- AUCTION.COM & HUBZU Online auction purchases: proof of funds, the deposit, the short closing window and the loan that keeps pace.
- BANK STATEMENT LOANS Qualify on 12-24 months of deposits instead of tax returns: who it is for and how income is calculated.
- SELF-EMPLOYED Business owners and investors: bank statement, P&L-only, DSCR and hard money programs with no tax returns required.
- VACATION RENTAL MORTGAGES Airbnb and VRBO properties: DSCR loans that count short term rental income, plus the bridge that buys before the season.
- NON-WARRANTABLE CONDOS When the building does not qualify: what non-warrantable means, and the hard money and non-QM loans that close anyway.
- FOREIGN NATIONAL Mortgage loans for non-U.S. citizens: DSCR and hard money bridge options, documents and no U.S. credit history.
- BANKRUPTCY BUYOUT Financing to exit Chapter 7 or Chapter 13: business purpose versus consumer purpose, and which paths actually work.
© MORE SITUATIONS POINTING TO THE NEAREST PROGRAM
SIX MORE SITUATIONS, AND THE BAILOUT
SELLER FINANCING
A seller who carries part of the price in second position behind a hard money first. Whether the first lender allows a junior lien is decided per deal; ask before the offer is written.
SECOND & THIRD MORTGAGESSTATED INCOME LOANS
The pre-2008 stated income loan no longer exists for consumer loans. Its modern relatives are the bank statement and P&L-only programs, which qualify on deposits or business profit instead of tax returns.
BANK FINANCINGUNFINANCEABLE PROPERTIES
A property a bank will not lend on: mid-renovation, vacant, fire damaged, missing a kitchen, or simply too unusual. A hard money bridge buys it as-is and a refinance follows once it is stabilised.
HARD MONEY RESIDENTIAL BRIDGEUNPERMITTED IMPROVEMENTS
An addition, ADU or conversion built without permits blocks conventional financing. Hard money values the property as it stands, and the fix and flip program funds the work that legalises it.
FIX & FLIP LOANSWHOLESALE TRANSACTIONS
A contract assignment or double close where the end buyer needs funds on a short clock. The fix and flip and bridge programs close on the end buyer’s purchase; the wholesaler’s fee is paid through escrow.
FIX & FLIP LOANSFORECLOSURE BAILOUT
A loan that pays off a defaulted or matured first mortgage before the trustee’s sale. On investment property Loan Goat’s hard money residential bridge publishes Bailouts OK, Defaults/NOD OK and Matured loans OK.
HARD MONEY RESIDENTIAL BRIDGE