Soft Money represents a long-term (5/1 ARM, 30-Year Fixed) real estate investment loan program that closes swiftly (2-3 weeks) compared to conventional loans. This type of loan program requires more underwriting than hard money loans, resulting in lower rates and enhanced security. It’s structured based on both the borrower’s credit score (minimum 650) and the property’s LTV, always as a term loan.

An innovative approach that combines the best of hard money with lower risks and a longer-term perspective, Soft Money programs are an excellent fit for many borrowers due to their cost-effectiveness, lower rates, and extended terms.

Only a select few private money lenders offer Soft Money, but at Level Up Lending, we continually expand our library of mortgage loan programs to provide top-notch solutions for Nationwide Real Estate Investors. Soft Money Loans are a valuable tool for the purchase or refinance of various property types, including office buildings, retail properties, 1-4 rental units, and multifamily housing, including apartment complexes. These loans offer up to 80% LTV without the need for PMI, allowing borrowers to invest with a reduced down payment.

Soft Money may be a relatively new term, but it’s an innovative approach to private money lending. Soft Money Loans combine the benefits of hard money with the added security of traditional loans. While they require more underwriting, they offer lower risks, making them an appealing option for borrowers.