Frequently Asked Questions
Do you require any up-front fees to start the loan process?
No. Capstone Financial’s process is streamlined to eliminate the headaches associated with hard-money borrowing. We don’t collect any fees, but the buyer pays for an appraisal on the subject property.
Will you pull my credit report?
Yes, but only to help us get a better picture of your current financial situation and borrowing history. We know that borrowers like you are more than just a number, so we’re not fixated on a certain score, but we will pull your report during the loan evaluation process.
Minimum credit score?
While healthy financial history is important to consider, our lending model doesn’t focus on credit score. We make lending decisions based also on the value of each project.
How much documentation do I need to provide?
Our required documents vary from loan to loan, but generally the more information you can provide about your financial and credit history and about the project scope and property, the better.
Will bank statements and financial documents always be required?
Current financial documents will be required with each loan Capstone Financial processes, regardless of borrow history with us. This requirement ensures both your ongoing success as a real estate investor well as the long term viability of our mortgage bank.
What is a 100% LTV using “Cross collateralization?”
This funding option allows a borrower to fund up to 100% of their project while using the inherent collateral of the project property in addition to equity held in a separate property or properties.
What is leverage?
Leverage is when a borrower uses less of their own cash/capital and getting a loan to increase purchase power. This borrowing strategy allows a borrower to retain more of their own money, rather than investing everything out-of-pocket and being forced to wait for project completion and sale to recoup expenses. This strategy increases dollar-for-dollar project ROI over paying 100% cash for a purchase and flip.
Are there minimum or maximum amounts on the loans you offer?
Depending upon the expected value of your project, we have loan programs available from as low as $50,000 to as much as $3 million.
How quickly can we close?
Because we do all our own fundings, Capstone Financial can fund your loan within one business day of signing. Processing and Closing the loan typically takes no more than ten to fourteen days.
Down payment requirement?
Capstone Financial requires a 10-25% down payment, dependent upon program and assessed risk. We can provide more information pertinent to your unique borrowing situation after you submit your property scenario on our website.
Should I use a Real Estate Agent?
Choosing the right real estate professional can have a huge impact on your buying experience, and it’s important to understand what different terms mean. A Real Estate Agent is someone who has passed a state licensing exam, while a Realtor© has also committed to maintaining a strict code of ethics in their business practices.
Can a real estate agent work with your program?
Absolutely! If you are a real estate agent who is looking to offer nontraditional funding sources to your client base, Capstone Financial can help you offer a full spectrum of borrowing options.
What property types do you lend on?
Capstone Financial lends on residential, multi-family, and mixed-use properties.
Do you lend on land?
No, Capstone Financial does not offer loans for land or ground-up construction projects. However, if a Buy-and-Scrape property is available and suitable for your project, we can fund the right loan for you.
Do you have any restrictions regarding the properties your brokers work with?
Capstone does not fund loans on properties that fall outside the scope of residential, multi-family, or mixed-use.
Do you require insurance?
Yes, each project property must carry its own Fire and Hazard insurance.
What is the most important consideration for Capstone in funding a loan?
Our process takes many factors into consideration, but responsible lending is based largely on the borrower’s available liquid assets, credit history, and subject property value.
Do I need to be pre-qualified with a lender to make an offer on a property?
While pre-qualification is not a requirement, it does have a couple benefits. First, it allows a borrower to have some idea of how much they are able to borrow and at what cost. Second, it demonstrates to the seller that the buyer has real intention to make a purchase. For hard-money lending, however, pre-qualification happens right here at Capstone Financial.
How do we determine our loan amount?
Before any funding takes place, we will arrange for an appraisal of the target property. Using the information gathered during that process, and your plans for the project, we’ll put together some loan packages for you to consider.
What is a 100% LTV?
One hundred percent loan-to-value loans are those in which the borrower is able to borrow the full purchase amount for a project using assets other than those involved in the target project. This is called cross collateral.
How do you determine rate?
Each project is unique, and rates are determined according to a risk assessment of the individual file. We would be happy to discuss rates with you. Simply fill out our application to get started.
How do I make payments?
Capstone Financial services all our balance sheet loans in-house, and on some programs, your servicing may be transferred to a third-party servicer if you qualify for a lower interest rate hedge fund type program. Your payments will come directly to us if you are in one of our private programs. You’ll receive all your payment terms and instructions at the time of signing.
How do I pay off my loan?
When you’re ready to payoff your loan, simply let us know. We’ll calculate your payoff amount according to your timeline, and handle it all right in house.
What are the late fees?
Late fees are assessed at a rate of 10% of the payment amount for payments not received by the fifth of each month.
How long are loan terms?
Capstone Financial loans are offered on 6 or 12-month terms, but extensions are available on a case-by-case basis.
I’m not a U.S. citizen, can I buy a home in the U.S.?
Depending upon your unique situation, we can find the right program for you. For borrowers who have green card/permanent resident alien status, funding options are the same as those offered to U.S. citizens. Fill out our application, and we will be happy to go over the best options for you.
Who is eligible for fix/flip loans?
Fix-and-Flip loans are available to citizens of the U.S. and Canada, Permanent Resident Aliens/green card holders, and some types of businesses (LLCs, LPs, General Partnerships, and Corporations).
Can I live in one of my rental properties or rent it to a family member?
Yes. Capstone Financial is able to fund residential, mixed-use, and multi-family loans for lots of unique situations. Simply discuss your circumstances with us, and we will find the right solution for you.
Does Capstone Financial offer second mortgages, HELOCs, or Bridge Loans?
We do not currently offer these types of loans, but that doesn’t mean we can’t provide a solution to your unique situation. Fill out our application to find out more, and one of our loan officers will be in touch shortly to discuss your project.
How does Capstone Financial protect my privacy?
Where do you lend?
Capstone Financial can fund loans in most all fifty states, but we are unable to finance projects in any U.S. Territories or outside the United States.