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Frequently Asked Questions (FAQ)

What are Hard Money Loans?
Hard Money is a common term for private lending to investors. Private lenders are typically not restrained in the same way that traditional banks are. They are able to establish their own underwriting criteria and comfort zone. Private lenders do not typically resell or securitize the loans they originate, instead they prefer to be a true partner with a senior position in the capital structure.
Where does Arch obtain the funds for its loans?
Arch Loans is self-funded with the founders’ own capital. We are not forced to match up the needs of our borrowers with the needs of individual investors as a typical broker would do. This allows ARCH to fund our borrowers’ needs quickly and reliably.
Can I borrow funds secured by my personal residence?
Arch Loans lends on investment properties only. Prior to funding, the borrower must certify that the collateral is an investment property.
Where does Arch lend?
Arch Loans currently lends in Arizona, California, Colorado, Illinois, Michigan, Oregon, Texas, and Utah.
What type of collateral will you lend on?
Arch currently focuses on residential and residential income properties that require a capital investment to reach their full potential. We also consider commercial properties on a case by case basis up to $2m. We do not currently provide construction loans, loans on raw land, notes or ground leases.
What are your rates and terms?
Each loan is unique and is reviewed on an individual basis. Rates and other fees are based on the quality of the borrower, collateral, and loan to value. Typically, we will lend up to 70% of the current value of the property on either a 6 or 12 month term. For more information, review the Products page of our website.
Will you lend against a second trust deed?
No. Arch takes a first position only.
Does Arch require a personal guarantee?
Yes, all loans are full recourse with a personal guarantee. You must take title in the name of an entity, but the owner/manager must provide a personal guarantee.
How quickly can my loan be approved?
The team at Arch Loans has extensive experience in both debt and equity investments. This allows us to review, underwrite, and approve your loan quickly. We are well capitalized, and funds are available immediately. Please refer to our products page for a timeline. We only accept applications online, to apply now, please click here.
What are your hazard insurance requirements?
The hazard insurance policy should be the lesser of the replacement value or the loan amount. We must be the first loss payee.
How long does it take for my loan to fund?
Once we have approval, we work directly with escrow to satisfy all prefunding conditions. Loans can be funded within 24 hours after all requirement are met.
How do I pay for my fees, points, & first month’s interest?
These costs will be funded through escrow upon purchase or refinance.
Do you consider my credit score in approving my loan?
We primarily underwrite based on the property, but guarantors with a history of bankruptcy or foreclosures might be denied.
What is your application process for a repeat borrower?
Our online application process allows repeat borrowers to utilize their previous application and expedite the process.
How do I pay my monthly interest payments?
Interest payments are due on the first day of the following month. We accept checks and ACH payments; cash is not accepted. Courtesy invoices are sent two weeks prior to the due date.
Do you require an appraisal?
We require a drive-by appraisal on every property. Larger loans may require a full appraisal. Our inspection fee covers the basic appraisal from our authorized appraisal vendor.
Do you charge late fees on my monthly interest payments?
Yes, terms are noted in your promissory note.
Do you charge a prepayment penalty?
No, we encourage pre-payment.
What if I can’t pay off my loan within the terms agreed upon?
Your promissory note will describe the relevant fees and penalties.
What do I do when I’m ready to pay off my loan?
All pay off requests need to be made in writing, typically they will come from escrow or title officers. We will entertain pay off requests from the borrower, but we will not issue a full reconveyance until funds are received.