Empowering Investors and Contractors with Smarter Lending

HomeStrong Lending leverages expert property evaluation, market-specific insights, and innovative technology to deliver higher returns and reduced risks for investors

HomeStrong Lending was created by lending and property evaluation experts to help facilitate funding from investors to contractors. Until now, most investors lend on real estate either by contributing to large funds that are restrictive, offer marginal returns and have little understanding of real estate markets, or by attempting to self evaluate opportunities, resulting in higher risk profiles and potential losses. HomeStrong Lending has an aim to provide higher returns to investors while providing solutions to mitigate risk by using market specific knowledge, proprietary technology, and additional securitization.

HomeStrong Lending principals have specialized expertise in property evaluation, acquisition, rehabilitation and resale of residential properties. Over the past 15 years the principals have completed over 1,500 property projects and funded over 50 loans.

Current Real Estate Lending Landscape

The lending landscape has been divided into two specific market segments that provide similar lending terms. A typical hard money loan for a real estate transaction will consist of the following terms

An Initial loan of 80-90% of the Property’s Purchase Price

Funds for rehabilitation, with a combined loan to value that does not exceed 65-75% of the After Rehab Value

Interest Rates of 10-15%

2-5 Points charged on the Total Loan Amount

12 Month Loan Terms

The Problem

  • Lenders have subpar property evaluation abilities, resulting in arbitrary valuations that may not accurately reflect a property’s value, resulting in low loan to value calculations
  • Large lenders mitigate their own risk by offering low returns to investors and low loan amounts to customers
  • Large lenders are bound by lending restrictions placed on them by investors who lack industry knowledge
  • Smaller lenders charge higher rates and fees and lack the sophistication to adequately service their loans
  • Lenders are slow, often delaying property closings and sometimes resulting in an inability to close

The Solution

HomeStrong Lending aims to provide a faster, more effective loan evaluation and fulfillment process while offering higher loan amounts by utilizing the following

  • Property Evaluations are performed by evaluators with market specific knowledge that utilize proprietary technology and conduct on-site inspections to understand property conditions and values
  • Lend on properties that fit within certain specifications, with location, price, and repair requirements having to meet approved standards
  • Lend to pre-vetted customers that have the proper expertise and experience to successfully complete projects
  • Willingness and ability to take over properties that have issues to insure project completion in the event of complications
  • Guarantee safe return of 25% of funds using bonds and first trust deeds on unencumbered properties, regardless of loan status

Loan Products

Full Purchase Bridge Program

This loan product will cover 100% of the purchase price of a property, subject to an approved Scope of Work and After Rehab Value (ARV).

  • Scope of Work must be approved
  • Combined Loan limit of 75% of ARV
  • 6 Month Term with available extensions subject to approval (1% Extension Fee)
  • 2 points / 12%*

100% Loan Program
 

This loan product will cover 100% of costs needed to purchase, repair, and maintain a property
until sale.

  • Customers are required to receive approval for the Scope of Work and Contractors to be used on the property
  • Combined Loan Limit of 86% of ARV
  • 6 Month Term with available extensions subject to approval (1% Extension Fee)
  • 2 points / 12%*

Home Renovate to Sell Program

This loan product targets homeowners who wish to make certain repairs to increase their home’s value before sale.

  • Homeowners are required to use an approved Scope of Work and Contractor
  • Combined Loan Limit of 75% of ARV
  • 6 Month Term with available extensions subject to approval (1% Extension Fee)
  • 2 points / 12%*

HomeSaver Program
 

This product is being made available to homeowners who are in pre-foreclosure. Under this program, HomeStrong USA will purchase the home and allow the homeowner to stay in the home for 12 months with the opportunity to repurchase the property.

  • Repurchase price is determined by market value
  • Combined Loan Limit of 75% of ARV
  • 2 points / 12%
  • 12 Month Term
  • Quarterly inspections required
  • Repairs managed by approved service provider

*Rates are based on loan terms, borrower qualifications, LTV, and property factors and are subject to change. Non owner-occupied properties only.

**Exceptions may apply.

GoModern Lending DBA HomeStrong USA Lending (NMLS Lic. #2045981) is an equal housing lender. This is not a commitment to lend or extend credit. Programs, rates, terms and conditions are subject to change without notice. Terms and conditions apply. All rights reserved. Contact us for details. Consult your accountant about tax deductions. NMLS Consumer Access