Frequently Asked Questions

General Private Lending Questions

Q: What is the difference between Hard Money and Private Money?

The terms are often used interchangeably. **Private money** refers to capital sourced from non-traditional, private investors or funds (like LOX Funding). **Hard money** refers to the type of loan—a short-term, asset-based loan used for immediate funding needs, often for a Fix & Flip project.

Q: How fast can LOX Funding close a loan?

Because we focus on the asset, not just your tax returns, we can issue a term sheet within 24 hours of receiving a complete application. Closing can occur in as little as **7 to 14 days**, depending on the speed of the appraisal and title work.

Q: Is LOX Funding a direct lender?

Yes, LOX Funding is a direct private money lender. This allows us to have complete control over the underwriting process, ensuring speed, flexibility, and reliability for our borrowers.

Fix & Flip and Construction Loans

Q: Do you finance 100% of the renovation costs?

Yes. We offer financing up to 100% of the renovation budget, typically structured as a percentage of the **Loan-to-Cost (LTC)**. Funds are disbursed in draws as the work is completed and inspected.

Q: What is the maximum Loan-to-Value (LTV) you offer?

For most Fix & Flip projects, we lend up to **75% of the After Repair Value (ARV)**. Please use our LTV Calculator to estimate your potential loan amount.

Q: Do you offer financing for ground-up construction and multi-site projects?

Yes. We provide comprehensive **Ground-Up Construction** and **Commercial Loans** for both single-family builds and multi-site, mixed-use developments, focusing on experienced builders and strong exit strategies.

DSCR Rental Loans

Q: What is the minimum DSCR ratio required for approval?

Our minimum required **Debt Service Coverage Ratio (DSCR)** is typically **1.25** for most rental properties, though we may go lower for borrowers with strong equity. The property's cash flow must comfortably cover the monthly mortgage payment.

Check your ratio on our DSCR Calculator page.

Q: Are DSCR loans available for commercial real estate?

Absolutely. We offer **Non-Owner Occupied DSCR Loans** for both residential (SFR, 2-4 unit) and commercial properties, including multi-family and mixed-use assets, qualified purely on the income generated by the property.

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Non-Owner Occupied/Commercial Disclaimer: LOX Funding only provides financing for non-owner occupied residential and commercial investment properties. We do not offer financing for primary residences or consumer purposes. Loan qualification is primarily based on the value and cash flow potential of the real estate asset, not solely the borrower's personal income.
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