Lima One Capital is a hard money lender that offers loans for fix-and-flips, rehabs, cash-out refinances, and bridge with a 13-month term. It also offers permanent rental mortgages with a 30-year term and multifamily loans with a two-year term. It’s best for investors looking for a loan to fund a variety of real estate projects.
Lima One Capital Pros and Cons
Offers a variety of loan programs based on borrower’s purpose
Does not lend on commercial properties
Allows you to cross-collateralize properties to lower your down payment
Currently not licensed in Alaska, North Dakota, Nevada, South Dakota, Utah, and Vermont
No prepayment penalties for short-term loans
Who Lima One Capital Is Best For
- Real estate investors looking to fund a variety of projects: Lima One Capital offers mortgages for a variety of projects like fix-and-flips, heavy rehabs, cash-out refinance, bridge loans, rental properties, and multifamily investment properties.
- Real Estate Investors with a credit score of 600 or up: Lima One Capital has a minimum credit score requirement of 600 for fix-and-flip loans and 620 for rental loans.
Lima One Capital Costs and Terms
Hard Money Loan
$75,000 to $1 million (rental loans);
$250,0000 to $2.5 million (multifamily)
Annual Percentage Rate (APR) Range
5.5% (rental loans) to 11.5% (short-term loans)
13 months (fix-and-flip), 24 months (multifamily), 30 years (rental)
At least 15 days
Lima One Capital offers fix-and-flip loan programs with a 13-month term length and multifamily loans with a 24-month repayment term without prepayment penalties. It also offers rental loan programs with 30-year repayment terms. Loan limits and APRs vary depending on the type of loan. You can borrow as much as $1 million for rental loans and $2.5 million for multifamily loans.
Do You Qualify for Lima One Capital Financing?
Minimum Credit Score
600 (fix-and-flip loans);
620 (rental loans)
Cash Reserves Minimum
20% to 50%
Lima One Capital’s qualification requirements vary for each product. A minimum credit score of 600 is required for fix-and-flip loans while you need to have a credit score of 620 or higher for rental loans. Borrowers will need six months of cash reserves in the bank to cover carrying costs on a fix-and-flip or property expenses on a rental. Lima One considers after-repair-value (ARV) loan-to-cost or loan-to-value (LTV), depending on the type of loan.
Lima One Capital Application Process
For existing Lima One Capital clients, you will need to log in to your user account, and you will be guided through the online application process for both fix-and-flip and rental loans. To submit a new application, you need to call 800-390-4212 or your sales representative. For multifamily loans, you can submit an online application where you will be asked to provide information about the property, such as the property type, value, address, and more.
Lima One Capital Alternatives 2020
Investors who want competitive rates and fast funding for residential fix-and-flips
Landlords wanting to refinance or grow their rental portfolio
Investors who want great customer service with a local bank feel from a 44-state lender
Fix-and-flippers who want an alternative to LendingHome, but with a commercial component
What Business Owners Should Know About Lima One Capital
- It doesn’t lend on owner-occupied houses and commercial properties: Lima One Capital provides a variety of loan programs for investment properties only. This means that the borrower cannot live in the property at any time during the course of the loan. Also, while it lends on residential and multifamily investment properties, it does not lend on commercial properties.
- It allows you to cross-collateralize properties: If you own a property, Lima One Capital allows you to use that property as collateral instead of requiring a down payment for your project.
- It’s not available nationwide: Lima One Capital is not currently licensed in Alaska, North Dakota, Nevada, South Dakota, Utah, and Vermont. Lima One Capital is licensed or exempt from licensing in all other states.
Most Helpful Lima One Capital Reviews
Most of Lima One Capital reviews available online are a mix of positive and negative ratings. Customers who left positive reviews are happy with its customer service and the efficient communication its team provides. Clients who left negative reviews expressed disappointment with Lima One’s high charges and cash reserve requirements.
Simple Process and Great Communication
A client who left a positive review on Better Business Bureau (BBB) is happy about the process of closing a fix-and-flip loan through Lima One Capital because everything had gone well. According to her, Lima One Capital communicated with her efficiently, and she got the loan as expected. She added that she plans to do more business with them in the future.
Cost Is Too High
A client who left a negative review on HardMoneyHome.com is disappointed because Lima One said it lends at 5%, but the interest rate charged to him is 12%. He also said that the lender required him to have at least $38,000 in the bank to get approved for the loan. After going through two underwrites, he decided to walk away because he feels it’s a waste of time.
Lima One Capital Frequently Asked Questions (FAQs)
Every funding situation is unique, and small business owners should seek out answers before selecting a lender. We’ve gathered some of the most FAQs about Lima One Capital below and answered them.
Does Lima One Capital require an appraisal to fund a loan?
Lima One Capital requires an appraisal for all fix-and-flip, rental, and multifamily loans. Appraisals are the last step in the application and underwriting process. They are conducted only after the borrower is approved for the loan, and the borrower has accepted the estimate of cost. Appraisal costs are shouldered by the borrower, which should be paid directly to the lender’s approved appraisers.
Does my credit score affect the approval of my application?
For Lima One Capital’s fix-and-flip loan programs, you need to have a credit score of 600 or above. If you don’t meet this, you will have to partner with someone who meets the credit score requirement, and they will have to be included on the United States Department of Housing and Urban Development (HUD) and Note. For the rental loan programs, all individuals on the loan must have a minimum credit score of 620.
Does it provide proof of fund letters?
You can get preapproved for Lima One Capital’s hard money loans and rental financing on its website. It will only take 24 hours or less to get a preapproval for fix-and-flip and rental loans.
Lima One Capital is best for real estate investors who are looking to fund a variety of projects. It offers fix-and-flip with a repayment term of 13 months, multifamily loans for 24 months, and rental loans for 30 years. Borrowers must keep in mind that Lima One Capital has a minimum credit score requirement of 600 to 620, depending on the type of loan.
If you are not sure if Lima One Capital is the best fit for your needs, then this article on the best hard money lenders is a review of our top choices. We evaluated the companies based on their loan rates, terms, borrower qualifications, funding speed, and more.