Our Hard Money Lending Process


Hard Money Loans

Bay Funding is a leading lender of private money rehab loans in the Mid-Atlantic area. We work with a large range of people including investors, rehabbers, landlords, and more.

Learn more about our 6-step lending process:

Our 6-Step Lending Process

  • Step 1: The Initial Application

    Head over to our initial loan application page and once completed, your application will be quickly reviewed by our team. Shortly after, you will receive a phone call to talk further about the potential deal.

    After the call we will then run any other final screening criteria and once approved, issue you a commitment letter.

  • Step 2: Documents

    Once you’ve been approved, we will ask for the following documents:

    • 2 years of tax returns
    • Copy of Sales Contract and any deposit check(s)
    • Copy of Driver’s License
    • A bank statement showing how much money you currently have, and a personal financial statement.
    • A detailed list of proposed repairs and draw schedules, including material and labor costs and copies of any contractor estimates or contracts
    • Copies of any appraisals or inspection reports of the Property;
    • Copies of all your corporate documentation (if an entity borrower)
    • Addresses of any cross-collateral property, if any.
  • Step 3: Property Inspection/Valuation

    After we’ve received all the necessary documentation, the title to the property will be ordered, as well as a valuation, if required. The property inspector will reach out to you directly to set up an appointment for the inspection.

    Payment for the property inspection/valuation is non-refundable and must be paid by the time of the inspection.

  • Step 4: Insurance & Closing

    We want to make sure everything is extremely smooth for everyone involved, so to protect our borrowers we require a few different types of insurance depending on your loan type.

    Assuming there are no issues with the appraisal, inspection, or title, you will be able to access your loan funds through a settlement with a title company, after you have provided evidence of General Liability Property Insurance in an amount equal to the total loan amount.

    If you are rehabbing a property, you may be required to obtain a Builder’s Risk Policy. Contractors that are hired for the job must provide a copy of their General Liability Insurance and Proof of Workmen’s Comp Insurance.

    You will be responsible for all closing and insurance costs. When appropriate, we often encourage borrowers to get the Seller to contribute as much as possible toward closing costs.

  • Step 5: Construction Draws

    If your hard money loan is a construction loan or is being used for rehab, you will need to have a construction escrow.

    As each phase gets completed, a property inspection must be arranged. Once approval is obtained the draw will be released.

    The final draw is NEVER released until the project is completed. You’ll be responsible for construction draw inspection fees, the draw inspection fee is $150.

  • Step 6: Refinance Or Sell

    Those who plan their acquisition and exit strategies properly, often profit substantially.

    The final phase consists of you selling or refinancing the property (within the loan term) to make certain Bay Funding receives a full payoff of the loan.

    With this Hard Money Loan strategy, we’ve seen thousands of people successfully profit from real estate opportunities that would otherwise be unavailable with traditional financing. 

We Don't Have A One Size Fits All Approach

If We Can Make Your Deal Work - We Will!

Man signing contract

At Bay Funding we believe in helping as many real estate investors grow their wealth as possible. As a team of real estate professionals, we understand the unique challenges that arise when it comes to real estate.

That is why we don’t have a one size fits all approach when it comes to lending. Our team can make a decision in a very quick period of time because we are not backed by institutional money or private equity.

We offer loans for:

  • Rehabs

  • Property Flippers

  • Cash-out Refinancing

  • Investment Properties

  • Rentals

Our Most Frequently Asked Questions