General Loan Guidelines

Below are our Denver hard money loan guidelines.

  • Loan Size

    Our hard money niche is from $100,000 to $2,000,000. Can Forrest Financial arrange financing outside of our niche? Certainly, under the right circumstances and for the right borrower.  We do have the capability to arrange loans as large as $10,000,000.

  • Property LocationLocation

    We will lend on real estate located anywhere in state of Colorado, not just along the Front Range.

  • LTV (Loan to Value)

    The LTV on most loans that get funded today will be in the 50-65% range.  It is possible to get an LTV as high, 75% in some instances, if we can get comfortable that the market for a particular property is strong and is on the incline or the property is in a niche market area.

  • Loan Term

    Typically the loan term will not be longer than 2 years. This works for most borrowers since hard money is definitely more expensive than conventional financing and is used temporarily until conventional financing can be arranged or the property sold. However, extension clauses can be inserted into the loan documents that allow the borrower to extend the loan beyond the maturity date if the loan is performing and circumstances with respect to the borrower and the property have not changed substantially from the time the loan was initiated.

  • Interest Rate

    Our rates today generally range from 9-12%. Rates vary according to the LTV, property type, property location, borrower, etc. Forrest Financial's hard money loan rates are generally lower than most other hard money lenders active in Colorado.

  • Origination Fee

    Our origination fees are typically 2-4, points. Again, depending on the borrower, property, location, loan term, etc.

  • Closing Costs

    All loans are closed in the office of a title company.  The borrower is responsible for all costs involved, (a) a lender's title insurance policy, (b) closing/settlement fee, and (c) recording fees.

  • Loan Documents

    We try to keep paperwork to a minimum, but the two loan documents absolutely necessary are a promissory note and a deed of trust.  Other documents often needed  include a loan guaranty, a disclosure of risk factors, and subordination agreement.

  • TimingCalendar

    Realistically, it is going to take at least a week to fund a loan from the time borrower submits a request. Small loans, under $500,000, are generally the quickest and easiest to get done. Larger loans usually take longer, up to 4 weeks, because there are more parties involved. Can a loan get funded in a few days? Yes, if our desk is clear, the borrower has all the information needed immediately at hand, the property is free of any peculiarities and the loan request is not pushing the envelope with respect to LTV, term, interest rate, etc.  We have funded loans with as little as two days notice.