Rate, points, and other fees
Ask for an itemized quote covering origination points, underwriting or processing, valuation, legal and title charges, and any draw or inspection fees. One point is one percent of the amount used as the fee basis; confirm that basis with the lender.
Rehab draws and interest
Confirm whether interest is charged on the full commitment or only the funded balance. Ask how work is inspected, when reimbursement occurs, and whether you must advance cash for contractors and materials.
Hard money loan prepayment penalty
Prepayment rules vary by product and agreement. Ask whether there is minimum interest, an exit fee, or a prepayment penalty. Review the written loan documents rather than assuming every short-term loan can be repaid without additional cost.
A slower project changes the math
Extra months can mean additional interest, property taxes, insurance, utilities, and possible extension fees. Run a longer timeline and lower sale-price scenario in the calculator before committing.
For an example of a lender’s own program information, see Kiavi’s broker program. Confirm current criteria and terms directly with the lender.