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Hard Money Loan Points & Fees Explained | Hanover MC
By Hanover MC On September 28 2023
Hanover MC explains hard money loan points, fees, and terms — well-priced, flexible financing for California real estate investors.
Hanover Mortgage CompanyPrivate Money · Trust Deed Financing · California
Hard Money Loan Points and Fees Explained
Unlocking Real Estate Opportunities: Customized, Asset-Based Financing for the Non-Typical Borrower
General guidance only — every deal is priced case by case. See full terms below.
Business-Purpose Financing · California
Quick Answer
Hanover Mortgage Company (Hanover MC) arranges business-purpose hard money loans with well-priced points and fees, and flexibility on term length — asset-based financing that's evaluated on the property and available equity, with pricing and structure tailored to the deal rather than forced into a rigid, one-size-fits-all box.
Start an Application →or call (714) 838-1474 x102
Understanding Hard Money Loans
Hard money loans are business-purpose financing arranged by private trust deed investors rather than a bank. Instead of underwriting built around credit scores, tax returns, and debt-to-income ratios, this kind of financing centers on the property itself — its value, its condition, and the borrower's plan for it. That shift in focus is what makes hard money financing a practical option for real estate investors whose situation doesn't fit neatly inside a conventional lending box.
Built for the Non-Typical Borrower
No two transactions look the same, and Hanover MC doesn't try to force every deal through the same underwriting template. Real estate investors often come to hard money financing because their situation includes one or more of the following:
- A property type or use conventional lenders may not be able to finance
- A timeline that may not work with traditional underwriting for the loan situation
- Self-employment or complex ownership structures that don't fit standard income documentation
- Past credit issues, with a clear plan and exit strategy going forward
Hanover MC arranges financing around the transaction's actual characteristics — property type, equity position, and the borrower's plan — rather than a fixed checklist. That's the goal in practice: pragmatic, well-thought-out structuring aimed at a workable outcome for the borrower's specific property and situation.
Real Examples: How This Plays Out
Hanover MC publishes tombstones of past closed transactions, and a few of them show this kind of customization in practice:
See the full list on Hanover MC's deal tombstones page →, including the Hayward SFR + vacant lots deal → referenced above.
Note
The examples above describe specific, previously closed transactions only — not a quote or commitment to lend. Every borrower and property is underwritten on its own terms, evaluated case by case.
Well-Priced Points, Fees, and Flexible Terms
Hanover MC prices points and fees to be well-suited to the deal, and can work with borrowers on longer term structures when the deal calls for it — every scenario is evaluated case by case, and specific pricing or term length isn't guaranteed upfront.
What Determines Pricing and Terms
Property Type
The asset being financed
Location
Where the property sits in California
Sponsorship
Borrower's experience and plan
Because these factors vary so widely deal to deal, Hanover MC doesn't publish a single flat rate — every scenario gets evaluated on its own merits, and terms are quoted case by case.
Loan-to-Value Guidance
Lite Documentation
Lite documentation is required for Hanover MC's business-purpose loans. The underwriting focus stays on the property and the deal itself, rather than extensive income and financial paperwork — borrowers are still subject to standard verification and underwriting approval, but the process is built to move efficiently for time-sensitive transactions. See Hanover MC's FAQ page for more on how documentation requirements work in practice.
Get a Scenario Reviewed →or call (714) 838-1474 x102
Why Work With Hanover MC
Hanover MC is a private money mortgage company based in Orange County, arranging business-purpose financing sourced from both whole and fractionalized private trust deed investors. Because the firm is small and specialized, deals move with the individualized attention and flexibility that non-typical situations often require, with terms structured to fit the deal. See Hanover MC's full range of programs for other financing structures.
Common Questions About Hard Money Loans
Q1What credit score do I need to qualify for a hard money loan?
Hanover MC's underwriting is asset-based, not credit-score-driven. Past credit issues don't automatically disqualify a borrower — the focus is on the property, the equity position, and a clear exit strategy, evaluated case by case.
Q2What's the catch with hard money loans — why would I pay more than a bank rate?
Hard money financing generally costs more than a conventional bank loan because it's asset-based, moves faster, and can work with deals banks may not be able to finance. For time-sensitive or non-conforming transactions, that trade-off is often worth it — but it's a decision every borrower should weigh against their specific project and timeline.
Q3How fast can a hard money loan actually close?
Timelines vary by deal complexity and documentation, but hard money financing is generally structured to move faster than conventional bank underwriting, since it isn't routed through the same income and credit-verification process.
Q4Do hard money loans require income documentation or tax returns?
Hanover MC's lite documentation approach keeps the focus mainly on the property rather than extensive income paperwork, though borrowers are still subject to standard verification and underwriting approval.
Q5Is there a real difference between "hard money" and "private money" loans?
The terms are often used interchangeably in the industry. Both generally describe asset-based financing arranged through private capital rather than a bank — the specifics of any given loan matter more than which label is used.
Q6My deal doesn't fit a typical loan box — is it still worth applying?
That's exactly the kind of scenario hard money financing is built for. Hanover MC evaluates each transaction's specific characteristics rather than applying a one-size-fits-all template, so unconventional properties, timelines, or borrower situations are worth a conversation rather than an automatic pass.
More common questions are covered in Hanover MC's full FAQ page.
Ready to Talk Through Your Deal?
Hanover MC arranges business-purpose hard money financing with well-priced terms across California.
Apply Online →or call (714) 838-1474 x102
Hanover Mortgage Company arranges private, business-purpose mortgage financing for property owners and investors throughout California, evaluated on the asset and available equity rather than income or DTI. Hanover MC does not fund loans directly — capital comes from private trust deed investors, with financing arranged under Hanover's California DRE broker license.