Q1. What types of loans will Equity Funding fund?  

Our loans are generally short term, maturing in 3 months to 3 years. It is not uncommon, particularly with shorter term loans, to provide options to extend the due dates. Monthly payments can be based on interest only or on an amortized basis, depending on the needs of the borrower.

Q2. Will Equity Funding work with Brokers and Lenders?  

Absolutely! Brokers are always welcome and we are happy to participate in loans with lenders and their investors.

Q3. What types of real property are acceptable for use as collateral?

Many types of real property are acceptable for use as collateral including apartment buildings, condominiums, office buildings, commercial buildings, retail and shopping malls, marinas, single-family dwellings, and land (particularly with entitlements in place). Equity Funding will also consider notes and contracts receivables secured by the foregoing types of collateral for both loan purposes and for possible purchases.

Q4. What loan to value ratios are required? 

The loan to value ratios required vary depending on the type of collateral. Generally, Equity Funding will loan 50% of value on land and 70% to 75% of value on improved property. These ratios can fluctuate depending on such factors as location, the nature and condition of the improvements, and the net operating income generated on a rental basis from the property.

Q5. Is a second lien position acceptable?  

Yes. Equity Funding is creative and will consider a number of different lien positions, provided sufficient equity is available.

Q6. Are appraisals required on collateral?  

Not necessarily. Equity Funding has been doing business since 1987 and has extensive experience in the valuation of real estate. As a result we are able to make rapid decisions regarding the viability of a loan with or without an appraisal. Even if an appraisal is required, Equity Funding is often able to fund before the appraisal can be finished, preventing delays often attributable to this cause.