Why Choose Washington Capital Partners?
Investing can be tricky, but acquiring the perfect property should be fun. You have multiple options when choosing an acquisition loan partner, but not all hard money lenders are equal. What makes our programs stand out isn’t just the free underwriting and low rates, it’s the personal attention you receive from your dedicated advisor and their experience with acquisitions. As the largest lender in DC, MD, and VA, we’ve seen it all so we’re prepared for anything.
Our team and your dedicated loan specialist have real-life investing experience, so we know how to meet your needs and avoid pitfalls. We don’t just serve as your source of capital, we’re here to offer guidance and take the guesswork out of investing. From start to finish, we’re to ensure your success and establish a prosperous business relationship.
Let us take the stress out of securing capital by creating the perfect loan for your individual needs, using our experience and love of the industry. Use the form so we can learn about your investing goals and help you get your next project underway.
Everything You Want to Know About Acquisition Loans
What is an acquisition loan?
Acquisition loans are a source of funding for investors to acquire new properties based on the value of the property. Unlike other types, these do not include funding for any renovations or repairs which may be required for the resale of the property. If you need to do construction, you may want to consider a new construction loan in addition to this type.
What can they be used for?
They’re typically used for the purchase of investment properties, as opposed to owner-occupied, including:
- Single-Family Homes
- Multi-Family Homes
- Mixed-Use Properties
- Commercial Properties
- Undeveloped Land
What is required to get one?
To be eligible, you only need to have 2 things:
- A business entity, such as an LLC, or to be Incorporated
- A clear exit strategy (how you plan on paying back the loan)
What is the maximum amount you can get?
You can receive up to 65% Loan-to-Value (LTV) for a purchase-only. The total amount will depend on the specific lender you use.
Is there a credit score requirement?
Most lenders require a base credit score of 600. If your credit score doesn’t meet that requirement, your lender may suggest partnering with someone that has a higher rating. Bad credit does not automatically disqualify your eligibility for the loan either as lenders will take equity and other factors into consideration.
Can construction costs be financed into the loan?
Yes, most lenders offer an option that combines the acquisition and construction costs of a project into a single loan. In these cases, 100% of the construction costs are usually funded by the lender.
Acquisition Loan Rates and Specifics
|Interest Rates||9% – 12%|
|Points||1% – 5%|
|LTV||Up to 65%|
|Loan Terms||12 Months|
|Time to Fund the Loan||48 Hours from Clear Title|
|Lien Position||1st Position Only|