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.
What is a Hard Money loan?
A type of asset-based lending where greater emphasis is placed on the value of the property and the quality of the deal than on a borrower’s creditworthiness.
What types of properties does Cutter Hill Capital lend on?
CHC will consider loan requests for single-family residential, small multi-family residential, condo/townhouse units, and small mixed-use properties. It must be a non-owner occupied real estate investment property.
Does Cutter Hill Capital lend to individuals?
No, CHC will only lend to single purpose or special purpose entities (ie: LLC, Inc, Corp. etc).
Does Cutter Hill Capital consider 2nd lien position loan requests?
No, CHC will only consider 1st lien position loan requests.
Does Cutter Hill Capital fund 100% of a project?
No, CHC will typically fund the lesser of 70% LTV (as determined by the lender) or 90% or LTC (purchase price + rehab costs).
Does Cutter Hill Capital fund new construction projects?
Yes, CHC will consider loan requests for new construction projects.
Does Cutter Hill Capital require an appraisal prior to closing?
In most cases, CHC will conduct an internal analysis to determine the After Repair Value (ARV), or as complete value. In certain 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.
What fees are included in the application and closing process?
CHC does not charge any fees for underwriting, appraisals, or inspections. CHC will charge a flat legal fee on each transaction for document preparation and title review. This fee will appear on the settlement statement at closing.
Does Cutter Hill Capital allow a 2nd lien as part of the loan structure?
No, CHC will not allow a recorded subordinate lien.
How does the draw process work? Are there inspection fees?
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. In most situations, CHC does not charge for draw inspections.
How do I submit a loan application?
Please complete our initial online form and you will receive a prompt response. Please remember, the property must be under contract or currently owned.