Frequently Asked Questions


Have questions? We’ve got answers. Check out our list below of frequently asked questions. If you need more information, please reach out and we will be happy to discuss your project.

A “hard money loan” is any loan secured by a “hard asset” like commercial or residential real estate.  It can also be referred to as a private money loan. A hard money loan is a first mortgage on real estate investment property.  A hard money lender’s primary emphasis is on the value of the property as collateral, with secondary emphasis on the borrower’s credit score or other factors.

Cutter Hill will consider loan requests for single-family residential, small multi-family residential, condo/townhouse units, retail, office, and industrial. The property must be a non-owner occupied real estate investment property. 

No, CHC will only lend to single purpose or special purpose entities (ie: LLC, Inc, Corp. etc).

No, CHC will only consider 1st lien position loan requests.

No, CHC will typically fund the lesser of 75% LTV (as determined by the lender) or 90% or LTC (purchase price + rehab costs).

Yes, CHC will consider new construction projects for funding.

In most cases, CHC will conduct an internal valuation to determine the after repair value, or as complete value.  In rare situations where market data is insufficient or inconsistent, CHC does reserve the right to engage an appraiser at the borrower’s expense.  The borrower will always be notified of this prior to incurring any fees.

CHC does not charge any fees for application review or underwriting purposes.  CHC will charge a flat legal fee of $1,000 per transaction for document preparation and title review (possible exception for extraordinary work required for closing).  This fee will appear on the settlement statement at closing.

Yes, CHC will allow a subordinate lien.  However, the subordinate lien holder will be required to execute a subordination agreement.

The general rule of thumb is CHC will disburse draw funds for work that has been completed.  This policy does allow for required deposits for certain advance material orders. 

A draw request must include an updated rehab budget, progress photos, and copies of invoices/receipts.  If the project is local to Massachusetts, CHC may personally conduct a draw inspection as well.

CHC does not charge for draw inspections (possible exception if a project is significantly delayed or over-budget).

First, the borrower must have the property under contract, or must currently own the property. 

Next, please complete our initial online form and you will receive a prompt response from CHC.

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