frequently asked questions

  • What are advantages of using soft money lenders vs hard money lenders?

    Soft money loans have a lower interest rate. Where hard money loans are between 11%-15%, our soft (private money) loan rates range from 8.5% to 12%. Soft money loans can be between 10 and 30 year amortizations. Hard money loans are usually interest only loans that are to be repaid in just a few years, most commonly in 6-24 months.

  • Why use Private Money Lending?

    People often turn to private money lenders because many real estate transactions require fast responses and quick-turn funding to secure a deal. Conventional bank lending can take 30 to 45 days to close, which may cause buyers to miss out on lucrative opportunities. Traditional loans also require a certain credit score for approval. In most cases, investors call on us when they don’t have the time, credit, or patience to deal with traditional financing but still want a fixed interest rate with amortized terms—without a balloon note. We offer SOFT private money lending that gets funds working for you in under two weeks, with lower interest rates, 10–20 year terms, and quick, hassle-free processing.

  • Are there minimum credit requirements to obtain a loan?

    There is no minimum credit score for loan approval. Loans are based on the value of the asset and the LTV. Credit checks are not required but may be requested to determine debt to income ratio to confirm borrower can afford monthly payments.

  • Will you offer construction loans?

    Typically, no. We do consider each loan request on a case by case basis so it never hurts to inquire. Construction/Interim Construction loans may be considered depending on different factors of the collateral/project.

  • What types of transactions are handled?

    We offer financing on non-owner occupied investment properties. Some of these transactions include: Cash Out Refinance, REO’s, Commercial, Lots/Land, Short Sales, SFR (single family residence), Construction

  • What is the maximum LTV?

    Loan - to - Value (LTV) calculations on properties are determined using a current appraisal or BPO (broker priced opinion). The maximum LTV in most cases is 70% of the current marketable value.

  • Does Stout Financial work with brokers?

    YES! Contact us to discuss how we can help each other and our clients.

  • What is the maximum loan amount?

    We offer loans between $25,000 and $1,000,000.

  • What is the down payment requirement?

    This depends on the current marketable value of the collateral. We typically lend up to 70% of the LTV on improved properties and up to 50% LTV on land only properties.

  • How long are the loan terms?

    We offer terms of 12-24 months, 5 years, 10 years, 15 years and 20 years.

  • How quickly can you close?

    Funding in as little as two weeks if all parties are prepared.

  • Do you require insurance?

    Yes. We require hazard and title insurance on each property that we lend on.