faq

what is a 'hard money' or 'rehab' loan?

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“hard money” loans are private funds provided to borrowers, which are secured by the value of a property, as opposed to their credit worthiness or financial history. hard money loans typically have shorter terms than traditional loans, ranging from 3 to 12 months, a long with higher interest rates.
 

why do people use hard money?

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people use hard money because many real estate investors need quick and flexible capital to secure a deal. generally, banks and other institutional lenders are heavily regulated, have stringent lending requirements and as a result are unable to meet the needs of many investors. typically, borrowers use thunder mountain capital in cases when they either do not have the time, credit, or patience to deal with a traditional bank. hard money provides investors an incredibly valuable tool, which ultimately gives them a distinct advantage over their competition.

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do you lend on owner-occupied homes?

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no, we only provide financing for investment properties, meaning the borrower cannot live on the property at any point during the loan. 

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will you loan money in my corporate, llc or trust name?
 

currently all loans are only made to corporations, trusts or llc's. if an individual would like to receive a loan and do not have a llc, it is no problem. we can provide quick and easy assistance in the creation process.
 

do you only lend in tennessee?
 

we also lend in north carolina through our parent operation.

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what is your maximum loan amount?

thunder mountain capital targets loans between $50,000 and $2,000,000.

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how long are loan terms?
 

6-24 months.

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are there minimum credit requirements?

no, thunder mountain lends money based on the value of the asset. we do not run credit checks. your credit score will not be used to determine whether you are qualified for a loan with us.

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what are typical terms?
 

loan terms will vary depending on the type of loan you apply for. see the terms section for specific information. we offer interest rates of 12.9%, with 2-3 points. It is important to note that we will only charge borrowers interest on amounts which we have actually disbursed to the borrower. for example, a borrower may be approved for a $200,000 loan, but will receive $75,000 over time, for construction, as it is completed. if the borrower has not yet received any portion of $75,000, then they will not be charged interest on that amount. this allows our borrowers to save substantial amounts of money on interest for construction or renovation based projects.

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what is required down payment?
 

generally, you will have to put down a down payment of at least 10% depending on the loan and the property.

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what is maximum ltv?
 

thunder mountain bases loan to value (ltvv) calculations on our in-house valuation of the property. the maximum ltv in most cases is 70%.
 

how much rehab money will you lend?
 

yes.
 

do you charge pre-payment penalties?
 

in most cases we do not have pre-payment penalties.
 

how quickly can you close?

because we are able to underwrite all of our loans in-house, we can fund your loan in as little as 5 days if all parties are prepared.
 

how do I apply?

 

you can apply for a loan by applying through our website, E-Mailing us directly at david@thundermcap.com or you can call us directly at 615-861-1630.