Do you use credit reports?
Yes. We pull a tri-merge credit report with scores on each borrower and guarantor. However, we are not credit score sensitive, don't require a minimum and non-traditional credit is considered.
What are your rates?
There is no formal rate matrix since each loan scenario is unique. Rates vary based on a number of factors most notably the loan-to-value, property type, property location, and term.
How many loans can I have with Hanover at one time?
This is determined on a case-by-case basis. Most borrowers should expect to do an initial loan to establish a relationship.
Do I need to get an appraisal?
Yes. An appraisal is part of Hanover MC’s underwriting and due diligence process and is necessary on all transactions. If an appraisal has already been completed providing a copy for our review may fulfill the need and save time.
What if I have bad credit? Can I still get a loan?
Yes! Our hard money underwriting guidelines focus primarily on equity, not borrower credit. We have accepted borrowers with low credit scores, prior bankruptcies, and foreclosures. We also make loans to foreign nationals and entities with no credit history.
What are Hanover MC’s underwriting requirements?
We start with looking at your qualifications. We seek to partner with professional redevelopers who have a track record of success. You should have 3+ projects under your belt and a network of contractors, legal professionals and real estate agents who help you achieve your goals. Once you are prequalified we look at each project on [...]
Can I finance construction costs?
We do have the capability to fund 100% of the construction costs. Similar to other funding mechanisms, we'll likely hold a percentage of these construction funds in escrow and release them as project milestones are met, subject to inspection.
Can I finance 100% of the acquisition cost?
We require that you bring at least 20% of the purchase price to the closing table. Depending on the scope of the rehab and your experience, we may ask for a greater percentage. Our investors like to know that you are committed to each project and the best way to do this is require you to [...]
When will I receive funding for my project?
We can get loans funded in as little as 8 days. It's best to set up your profile and get pre-approved by prior to having a project ready for funding. This will allow us to move directly to underwriting the project. This allows for you to get the capital you need in a timely manner.
Do I have to handle all of the paperwork myself?
No. We handle all of the details for you. We'll present you with a transaction synopsis and TD Investment packet with the information you need to make a decision. Should you and/or others commit to invest in a loan, we'll coordinate the appropriate paperwork and create the trust deed that secures that loan.