Frequently Asked Questions

Questions Real Estate Investors Ask About Our Hard Money Loans

Q: What are New Provident’s loan requirements?
A: 70% of ARV is our max loan-to-value. All properties must have clean title with taxes and HOA fees up to date.  In addition to a title company having you sign a note and deed of trust, borrowers must sign a personal guarantee at closing. We will loan to businesses as well as individuals but loans are not available for your primary residence.

Q: What are New Provident’s rates and fees?
A: New Provident does not collect an Application Fee or anything upfront. Rates and Origination Fees fluctuate based on risk:

  • 12.25% to 14%
  • 2-4 points origination
  • $1500 processing fee (collected at closing)
  • $100-$150 per draw (draws are released only on COMPLETED repairs)
  • Title and attorney fees will apply

Q: When are payments required?
A: We require Monthly payments to be made by ACH/ Autodraft from your checking acct. You may pay by credit card, but you will be required to make payment 5 days prior to the 1st of each month and cover the service fee from the credit card companies.

Q: Do you only lend in certain cities and states? 
A: New Provident provides hard money loans in the Dallas Fort Worth area only.

Q: What types of properties will New Provident approve loans for?

  • Single Family Residence
  • Townhomes
  • Condos
  • Duplexes

Q: How long does it take to get approval and close?
A: Once an application has been received New Provident will give a decision within 24 hours. If you have a rush need please call us after you fill out the application. Typical time from application to closing with Title is 3-5 days for a Single Family Residence.

Q: How is New Provident different from other hard money lenders?
A: At New Provident we do not require

  • Survey
  • Appraisal
  • Credit-check
  • Pre-inspection
  • Upfront fees

Q: What are your insurance requirements?
A: We require at least 6 months of insurance on the home for at least our loan amount or higher. And the premium MUST be collected on the HUD. New Provident will need to be listed in the mortgagee clause. We will need a copy of the “Declarations Page” before funding.

Q: Are there any fees or commissions to work with you?
A: We do not wire funds for closing until we have all closing documents including clean Title. For same day fundings, the closing docs must be received by 12pm. Otherwise funding will roll to the next day.

Q: What if I can’t make my payments?
A: If the loan goes bad, New Provident will 1) Take a deed in lieu or 2) Foreclose

Q: What if I need an extension on my 6 month loan?
A: New Provident charges a 1 point origination fee each additional month. The origination fee is based on the original agreed to loan amount. Example:  If you had a $150,000 loan with an additional $50,000 for improvements the extension fee is $2000. This fee is not prorated.