Universal Capital is a direct hard money lender serving New England with short-term construction, renovation, and bridge loans. The Universal team of lenders are experts in mortgage banking, real estate, and private lending.
Universal Capital was established in 2010 by an experienced team of mortgage banking professionals. We provide time-sensitive interim and bridge financing using non-owner occupied residential and commercial real estate as collateral.
Our funding is provided in an efficient and timely manner in contrast to the challenging and ever-changing guidelines experienced when working with traditional lenders. We are a direct lender utilizing our own capital as our funding source. We internally underwrite our loans allowing us to apply a common sense approach to our loan approval process.
Our core loan program is described below. Because we underwrite and make loan decisions in-house we can adapt our program based on the loan scenario and the risk. The program listed below provides a guide to understand our parameters. Please contact us directly with any scenarios you have.
Property types
- Single family (SFR)
- 2 – 4 Family (Multi-Family)
- Commercial
- Land
Loan Types
- Rehab/ Renovation
- New Construction
- Condo Conversion & Development
- Land Development & Subdivision
- Change of Use
- Short-Term Bridge Loans
| Loan Parameters | |||
|---|---|---|---|
| Loan Size | $100,000 – $3 million | ||
| Loan Term | 6 -12 Month Terms – Extensions available at lender discretion | ||
| Loan Category | Private Commercial (“Hard Money”) | ||
| Payments | Payments are interest-only due every 30 days, 1st mortgages only | ||
| Loan to ARV | Typically 70% of Current or After Renovation Value (ARV) – Higher amounts are negotiable | ||
| Down Payment | Minimum of 5-20% of the purchase price as a down payment, determined by scenario | ||
| Ownership | Must be non-owner occupied/investment only | ||
| Time to Close | 5 – 7 Business Days – Subject to Title | ||
| Security | 1st Mortgage Loans Only | ||
| Underwriting | Collateral-Based Lending | ||
| Interest Rate/Points | Call to Discuss | ||
| Lending Areas | MA, NH, ME, RI, CT, FL and others available depending on location/loan scenario | ||
Appraisal
An estimate of real estate value. Recent comparable sales in the neighborhood is the most important factor in determining value. This should be contrasted against the home inspection.
Appreciation
An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.
Bridge Loan
A sum of money lent by a bank or other lending institutions to cover an interval between two transactions. Most often it includes the buying of one house and the selling of another. Also known as Bridge Financing, Bridge Lending, and Short-Term Bridge loans.
Cloud On Title
Any condition that affects the clear title to real property.
Collateral
Something that is pledged as security for the repayment of a loan, and is then forfeited in the event of not fulfilling obligations.
Collateral Lending
Providing a loan where the collateral serves as protection for a lender against a borrower’s default. For example, any borrower failing to make any payments under the terms of a loan obligation. Also know as Collateral Financing.
Commercial Property
Commercial real estate is usually space that is leased out to individuals or businesses.
Commercial investment
An investment in a for-profit enterprise involved in the buying/selling of commercial real estate that is expected to generate cash flow.
Comparable Sales
Sales that have similar characteristics as the subject property and are used for analysis in the appraisal process.
Debt Financing
When an individual and/or institutional investors sell bonds, bills, or notes to a firm that raises money for working capital or capital expenditures.
Distressed Property
A property that is in poor financial or physical condition.
Easement
The right to use the land of another.
