WHAT IS A SOFT MONEY LOAN?
If you are a real estate entrepreneur looking to borrow for an investment property, a direct private money lender, like Stratton Equities is the perfect solution for you.
We provide soft money programs that utilize long term financing (5/1 ARM, 7/1 ARM, 30 Year Fixed), lower rates, and lower cost.
The combination of lower rates, lower cost, and a longer term time frame makes the soft money loan a better fit than a hard money program for many prospective borrower’s situations, particularly those interested in investing in a commercial or a more long-term property.
The Benefits of a Soft Money Loan
Soft money is defined as a long-term (5/1 ARM, 7/1 ARM, 30 Year Fixed) real estate investment loan program that closes faster (2-3 weeks) than a conventional loan.
This type of loan program requires more underwriting than a hard money loan, allowing it to have lower rates and greater security. It is based on both the borrower’s credit score (minimum 650) and the property’s LTV, and is always a term loan rather than a bridge loan.
An innovative approach combining the benefits of hard money that have lower risks, higher rates, and a short term loan time-frame - contrastingly, soft money programs fit many borrowers far better due to the program's lower costs, lower rates, and longer terms.
Only a select few private money lenders work with Soft Money however at Stratton Equities we are constantly growing our library of mortgage loan programs to provide the best solutions for Nationwide Real Estate Investors.
Soft Money Loans can also be a valuable tool for purchase or refinance of office buildings, retail properties, 1-4 rental units, and multifamily housing including apartment complexes.
Unlike conventional investment property loans that max out at 70% LTV, a Soft Money Loan Program maxes at 85% LTV and with no PMI. This allows the borrower to put less money down on their purchase.
Is Soft Money the new Hard Money?
Calling soft money ‘the new hard money’ may seem trite and contrived, but upon further reflection, soft money truly is the direction for the future of lending.
Why Should You Use a Soft Money Loan?
Long-Term Financing : This type of loan has long-term financing (5/1 ARM, 7/1 ARM, 30 Year Fixed) for real estate investors, who prefer to finance the purchase and/or rehab of their investment property.
Fast Funding: With conventional loans, there are qualifications that restrict you from getting access to those funds. With a Soft Money Loan program there is more underwriting than a hard money loan, allowing it to have lower rates, greater security, and fast funding.
For Your Real Estate Investment Needs: A Soft Money Loan is the perfect solution for any real estate investor, first time borrowers to seasoned real estate entrepreneurs.
All Property Types: At Stratton Equities our Soft Money Loans are customized to your real estate investment needs.
SOFT MONEY Overview
Investment Properties Only: Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed Use, Office, Retail, Industrial, Warehouse
Rates Starting at 4.375%
Loan Amounts - $100K – $5M
Up to 85% LTV
Blanket Loan Options Available
5/1 ARM, 7/1 ARM, 30 Year Fixed
Interest Only Option Available
Foreign Nationals Eligible
No Prepayment Penalty Option Available
How Soft Money Programs are the Future of Lending
‘Soft Money’ is a relatively new term in the lending industry; an innovative approach to private money lending, a soft money loan combines the benefits of a hard money loan with the greater security that a traditional loan offers. While a soft money loan approval requires more underwriting, it also offers lower risks and less risk, making it a deeply attractive option to borrowers who find the concept but not the details of a hard money loan appealing.
Why is Soft Money the Future of Lending?
While hard money is still the most popular option for many real estate investment scenarios, the soft money program will increasingly become the loan used by first-time real estate investors or borrower’s looking to hold a long term investment property, and investors with a high credit score who are looking for higher LTVs and lower interest rates.
How to Get a Soft Money Loan with a Private Lender
Stratton Equities has created a simple and easy process to receive a Soft Money Loan for your Real Estate Investment needs. We have an array of Soft Money, Hard Money, and NON-QM loan programs that are designed for any type of Real Estate Investor to meet all your mortgage needs. It doesn't matter what your loan scenario entails our quick and efficient approval process ensures that you get approved in a timely fashion with a dedicated Loan Officer working with your investment property.
When you’re ready to invest, Stratton Equities can help. We are the nationwide leading direct Hard Money and NON-QM lender, with an impressive array of programs, lowest private money rates (starting at 4.375%), professional team of experienced loan officers, and quick loan approval process.
If you have an investment property and wish to speak with one of our Loan Officers, call Stratton Equities at 800-962-6613, email us, or use our online application for loan pre-qualification today!
How Soft Money Loans are the Future of Lending
‘Soft Money’ is a relatively new term in the lending industry; an innovative approach to private money lending, a soft money loan combines the benefits of a hard money loan with the greater security that a traditional loan offers. While a soft money loan requires more underwriting, it also offers lower risks and less risk, making it a deeply attractive option to borrowers who find the concept but not the details of a hard money loan appealing.