Capital Funding Financial LLC—Pros and Cons of the Lender [Complete Guide]


When you’re shopping for investment property loans, it’s usually more fruitful to reach out to private lenders than banks. Private lenders have established themselves as fast and reliable providers of non-owner-occupied mortgages, but the abundance of options on the market can leave you confused.

Capital Funding Financial LLC is a private lender from Boca Raton, Florida, offering hard money loans for real estate investors. Our guide will help you navigate the lender’s products. If you want to make an informed decision about who to work with, we’ll also assist you with info on:

  • The loan processing cycle at Capital Funding Financial (CFF)
  • Pros and cons of the lender
  • First-rate competitors of CFF

Loan Programs at Capital Funding Financial

Capital Funding Financial is primarily a hard money lender. The main advantage of hard money lenders over banks is the lack of heavy bureaucracy. A bank is federally bound to lend according to a borrower’s credit standing and verifiable income capacity, but a hard money lender can fund deals purely based on the value of the underlying collateral (i.e., the hard asset).

Private lenders offer several hard money loan programs with different entry requirements and terms, so you need to go for one that aligns with your investment needs. At Capital Funding Financial, you can access the following products:

  1. Fix and flip loans
  2. Rental investment loans
  3. Small balance commercial loans
  4. Bridge loans
  5. Construction loans

Fix and Flip Loans

Fix and flip loans are suitable for purchasing or refinancing properties in need of repairs. Once you complete the renovation, you can generate revenue by selling the property for a profit or renting it out. Capital Funding Financial offers fix and flip loans with no personal income verification, but you still need a minimum credit score to qualify—the value is not specified on the website.

Besides presenting your credit report, CFF also requires applicants to present other documents related to personal finance. Refer to the following table to get more details about the package:

ParametersCapital Funding Financial
Loan range$75,000–$10,000,000
Tenure1–2 years
Interest rateStarts at 7.49%
LTV (loan-to-value)Up to 85% of as-is value or 75% of after-repair value
Origination fees1.50%–2.50%
Qualifying property• Single-family home
• Multi-family home
• Mixed-use home (i.e., home partially used for commercial or business activity)
Documents required• Purchase Contract
• Payoff Statement (for refinance)
• Rent roll and leases (if applicable)
• Rehab budget
• ID proof
• Bank statements
• Business incorporation documents
• Employer Identification Number or EIN letter

CFF can fund approved applicants within two weeks if the paperwork is done right.

Source: Nataliya Vaitkevich

Rental Investment Loans

CFF’s rental investment loans are available for residential (single-family and multi-family) non-owner occupied homes only. It’s not strictly a hard money loan as you can qualify for tenures up to 30 years—most hard money loans are offered for 1–3 years.

The following table outlines the specifics of Capital Funding Financial’s rental loans:

ParametersCapital Funding Financial
Loan range$55,000–$5,000,000
Tenure3–30 years
Interest rateStarts at 4%
LTV (loan-to-value)Up to 80%
Origination fees1.50%–2.50%
Minimum credit score620 (FICO)

Since it’s a long-term loan, you may have to submit more documentation than what’s required for the lender’s short-term loans. That being said, the main qualification criteria is your net operating rental income—essentially, you should have a positive cash flow after deducting the debt, taxes, and other charges levied on the property.

Small Balance Commercial Loans

Banks typically finance commercial loans with large balances ($7 million and up), so private lenders like CFF step in to help investors who need smaller loan sizes. Capital Funding Financial services commercial real estate loans for $250,000 to $5,000,000. Eligible properties include:

  • Single-family homes
  • Multi-family homes
  • Mixed-use homes
  • Office buildings
  • Retail properties (any storefront)
  • Hotel and lodging properties
  • Storage units
  • Senior facilities
  • Parking and automotive facilities

You need a minimum credit score of 650 to qualify for CFF’s small balance commercial loans. Your term length can be 1–10 years. While your interest rates start at 6.35%, you can expect over $5,000 in various fees and expenses.

Bridge Loans

Capital Funding Financial offers commercial bridge or gap loans to purchase or refinance properties in emergencies until permanent financing (like a long-term mortgage) takes place. The lender has lenient eligibility requirements for bridging services compared to its other products. In most cases, you need equity in the property and a fair credit score to qualify. Clean deals can be funded within 7–14 days.

CFF bridge loan interest rates start at 7.99%—it’s normal for temporary financing products to have higher rates than long-term mortgages. The minimum term length is six months, but there won’t be any prepayment penalty as long as the lender earns interest yield for more than three months.

Construction Loans

CFF can provide new construction loans for projects costing up to $50 million. You typically need to be an experienced builder or developer with shovel-ready land to qualify for the project. Go through the table below to learn other particulars about the programs:

ParametersCapital Funding Financial
Loan range$250,000–$50,000,000
Tenure6–36 months
Interest rateStarts at 7.99%
LTV (loan-to-value)Up to 75%
Qualifying property• Single-family home
• Multi-family home (up to 64 units)
• Mixed-use home
Minimum credit score660 (FICO)

Besides regular business documents, you also need to submit paperwork related to the construction, including the builder contract, detailed budget, permits, approved plans, and feasibility report.

Source: Mikael Blomkvist

Foreign National Loans

Capital Funding Financial also serves all their real estate products to foreign nationals. The borrower can choose any of the products mentioned above but without the requirements around personal verification or credit standing. In general, foreign national loans come with higher interest rates due to the convenience offered.

Capital Funding Financial—Loan Approval Process

The loan approval process at Capital Funding Financial goes through five stages:

  1. Application—You have to submit an online application form and wait for CFF officers to go over your request
  2. Document upload and acceptance—If CFF pre-approves your loan, you have to upload the necessary documents online and confirm the letter of intent (LOI)
  3. Appraisal—The lender will appraise your property to assess its current market risk and profitability scope
  4. Legal review—Your loan agreement and title deeds will be reviewed by the lender’s legal team
  5. Closing—CFF will confirm the loan closing once all the steps are completed

Capital Funding Financial—Overall Borrowing Experience

Capital Funding Financial is a suitable option for borrowers who don’t qualify for traditional loans or want to skip the bureaucracy-heavy processing at banks. We found several great reviews of the lender online, especially from clients who requested long-term rental property loans.

On the flip side, CFF may not be the best hard money lender choice in every situation. The lender requires moderate to high documentation compared to its immediate competitors. Your credit score, cash reserves, and income predictions—everything is considered during the decision-making process, which is time-consuming and causes discomfort to the borrower to a certain degree.

Another drawback is the lack of maximum ceilings for interest rates and costs. Complicated deals or low credit scores can easily increase your expenses. We recommend requesting and comparing quotes from different lenders—that will give you the upper hand while finalizing your choice.

Here is a summary of the pros and cons of Capital Funding Financial:

• Multiple programs
• Reliable lender
• Sound due diligence measures
• Available options for foreign nationals
• Significant paperwork
• Can get pricey overall

Contact Hard Money Loan Solutions for Painless Real Estate Funding

If you’re looking for an efficient lender, talk to Hard Money Loan Solutions (HMLS). The lending group (operating primarily from Florida) offers complete financing support for all your real estate needs, whether residential, rental, or commercial. HMLS provides no-nonsense hard money financing—you qualify based on the equity in the property, not your credit specifics. The lender generally does not ask for documents such as:

  • Credit report
  • Bank statements
  • Income proof
  • Identity proof
  • Tax returns
  • Statement of assets and liabilities

HMLS also does not charge junk fees (like processing, underwriting, appraisal, upfront, and digital retention fees) that can add up to around $8,500.

You can qualify for HMLS products regardless of your nationality status and without it affecting the interest rates. Because the paperwork is negligible, you usually get funded within 3–10 days. That being said, the group has industry-best due diligence measures, and their legal team ensures the final agreement is within federal, state, and local guidelines.

Source: Yan Krukau

HMLS caters to all types of funding scenarios with custom-made hard money programs, but the group follows a defined lending structure. The following table summarizes the predictable framework of any HMLS loan:

Loan ComponentHMLS Financing
Principal$100,000 to $50,000,000+
Interest rate9.99%–12%
Interest typeFixed
Term1–3 years
Prepayment penaltyNo penalty after 6 months
Installment typeInterest only (no amortization)
LTV offeredUp to 70% of the lower of:
• As-in value
• Purchase price or cost input
Origination fee2 points or 2%
Down paymentNot required—the borrower receives the funding and manages their deal on their own
Eligible property• Multi-family home
• Single-family home
• Apartment or condo
• Townhouse
• Land
• Any commercial, industrial, or retail structure

Loan Programs at HMLS

HMLS deals with both investment and owner-occupied properties. The group has programs suitable for:

Present your funding request to HMLS lenders to get a package designed for you. The team comprises direct lenders and real estate veterans who provide free consultancy to every applicant, regardless of their qualification status.

Source: Google Reviews

HMLS is a 5-star lender backed by a list of successful fundings over the years. You can explore some of the lender’s latest deals here. Customers prefer the group over other lenders because of:

  • Transparent and flexible processing
  • Fast closing
  • Timely, guaranteed delivery of funds
  • Tolerance for credit blemishes
  • Expert handling of complicated deals
  • Friendly and caring team
  • Reasonable pricing with no hidden costs

HMLS—Loan Approval Process

HMLS can wrap up a funding request in three simple steps—here’s how it happens:

  1. Application—The applicant completes an online form with generic details about the property and the required amount. The info helps the HMLS team pre-assess an application and call back the client with precise answers. Most approvals are communicated within a day
  2. Appraisal and confirmation—The HMLS team does a thorough property appraisal to design a fair loan package. The applicant can review the offer and accept or reject it or even seek modifications
  3. Closing and delivery—If an applicant is okay with the offer, the team transfers the handling to their legal partners. You get the funding shortly after the title work is done

Contact the HMLS team if you have further questions about the lending process or real estate financing—the lenders are always accommodating and look forward to helping clients grow their investments without hiccups.

If you’re making a list of relevant lenders, we’ve made the job easier for you. Check out other helpful guides below:

Featured image source: Mikhail Nilov

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