Frequently Asked Questions — Sab Tera Lending

Sab Tera Lending is a direct private hard money lender headquartered in Garden City, Long Island, NY. We serve real estate investors across 20 states: New York, New Jersey, Connecticut, Florida, Texas, Pennsylvania, Ohio, Virginia, Indiana, Michigan, Massachusetts, Kentucky, Tennessee, Mississippi, Louisiana, North Carolina, South Carolina, Georgia, Alabama, and Long Island as a dedicated submarket. We are not a bank — we are an asset-based lender. We fund deals based primarily on property value, not personal income or credit scores. We offer Fix & Flip, DSCR Rental, Bridge, Ground-Up Construction, Multifamily 5+, and Commercial Hard Money loans.

We lend exclusively to real estate investors — not owner-occupants. Our borrowers include first-time flippers, experienced portfolio builders, full-time developers, foreign nationals, and LLC/corporate entities. Self-employed investors, those with complex income, W-2 earners with no documentation on hand, and those who have maxed out conventional loan limits are all welcome across all 20 states. We do not discriminate based on credit score, income level, or immigration status.

Sab Tera Lending has no minimum credit score requirement. We are a true asset-based lender — underwriting is based on property value, deal strength, and your exit strategy. This sets us apart from competitors: Lima One Capital requires 660 FICO, Kiavi (formerly LendingHome) requires 640 FICO, Easy Street Capital requires 600 FICO, RCN Capital requires 620 FICO, and LendingOne requires 620 FICO. At Sab Tera Lending, the deal drives the decision — not a score.

No. All six of our loan programs are asset-based. We do not require W-2s, tax returns, pay stubs, or employment verification for any loan program — including Fix & Flip, DSCR Rental, Bridge, Ground-Up Construction, Multifamily 5+, and Commercial Hard Money loans. This applies to every borrower in all 20 states we serve.

No. Sab Tera Lending charges zero upfront fees. There is no application fee, no processing fee, no documentation fee, and no commitment deposit. You pay nothing until your deal funds and closes. Compare this to competitors like Easy Street Capital which charges a $1,995 documentation fee before approving loans — we believe fees should come at closing, fully disclosed in your term sheet, never before.

Call us at (516) 336-9293, email info@sabteralending.com, or submit your deal through the contact form on our homepage. We need: the property address, purchase price, estimated after-repair value (for fix & flip), loan amount needed, and your contact info. We issue preliminary terms the same day for complete submissions. You can also request a free Proof of Funds letter to strengthen your offer before the deal is finalized.

We offer six core loan programs available across all 20 service states:

(1) Fix & Flip Loans — Short-term rehab financing from 9.5% IO, up to 90% LTV + 100% rehab costs, close in 7 days.
(2) DSCR Rental Loans — 30-year fixed terms from 6.5%, no income verification, up to 80% LTV for 1–4 unit rentals.
(3) Bridge Loans — Short-term bridge financing from 9.5% IO for acquisitions, transitions, and exits.
(4) Ground-Up Construction Loans — New build financing from 10.0% IO, up to 90% LTC, fast draw schedules.
(5) Multifamily 5+ Loans — Bridge and permanent loans for apartment buildings and value-add deals.
(6) Commercial Hard Money — Mixed-use, retail, office, warehouse/industrial, self-storage, and hospitality financing.

We lend up to 90% of the purchase price and 100% of the verified renovation budget, capped at 75% of the after-repair value (ARV). Example: $300,000 ARV = maximum total loan of $225,000. Rates start at 9.5% interest-only. Terms range from 6–24 months. No prepayment penalties.

Minimum loan amounts by program: Fix & Flip and Bridge loans — $50,000; DSCR Rental loans — $75,000; Multifamily 5+, Ground-Up Construction, and Commercial Hard Money — $100,000. There is no published maximum — we have funded deals into the multi-millions across our 20 service states.

No prepayment penalties on Fix & Flip, Bridge, Ground-Up Construction, or Multifamily loans. For DSCR Rental loans, step-down prepayment options may apply depending on term — these are always disclosed clearly in your term sheet before you commit. Sab Tera Lending believes in full transparency: no hidden fees, no surprise exit costs.

Yes. Our Fix & Flip loan is a single-close loan covering both acquisition and renovation. We fund the purchase at close and disburse renovation funds in draws as work is completed and verified. You do not need two separate loans, two closings, or two sets of closing costs. This streamlined structure is one reason our investors close deals in 7 days.

Yes. Sab Tera Lending offers a dedicated Ground-Up Construction loan program available across all 20 service states. Rates start at 10.0% interest-only, up to 90% of loan-to-cost (LTC), with fast draw schedules and no prepayment penalties. We fund new residential builds (single-family and small multifamily) as well as commercial ground-up projects. Prior construction experience or a licensed general contractor is required.

LTC (Loan-to-Cost) is used for construction loans: the loan is calculated as a percentage of the total project cost (land + hard construction costs + soft costs). We lend up to 90% LTC for ground-up construction. LTV (Loan-to-Value) is used for acquisition loans: calculated as a percentage of the property's current or after-repair value. We lend up to 90% LTV for fix and flip. Understanding both metrics is essential for structuring your deal correctly.

Construction funds are disbursed in draws as milestones are completed. You submit a draw request, we order an inspection to verify the completed work, and funds are released — typically within 3–5 business days of the inspection. We keep draw schedules straightforward and responsive so your project stays on timeline. Unlike institutional lenders, we do not add bureaucratic delays to draw approvals.

Across our 20 service states, the strongest new construction markets for investors in 2026 include: Nashville and Chattanooga (Tennessee), Columbus and Cincinnati (Ohio), Indianapolis (Indiana), Richmond and Northern Virginia (Virginia), Philadelphia suburbs (Pennsylvania), Detroit suburb rebuilds (Michigan), Louisville (Kentucky), and Baton Rouge (Louisiana). We fund ground-up projects in all of these markets and can provide market-specific deal analysis on request.

DSCR (Debt Service Coverage Ratio) loans qualify based on the property's rental income — not your personal income. DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, and association dues). A ratio of 1.0 means the rental income covers the debt payment exactly (break-even). We require a minimum 1.0x DSCR. Terms are 30-year fixed, rates from 6.5%, up to 80% LTV. No W-2s, tax returns, or employment verification required. Perfect for self-employed investors, LLC borrowers, and foreign nationals across all 20 states.

Yes. For DSCR loans on vacant or newly renovated properties with no rent history, we use market rent (supported by a rent schedule from the appraisal) to calculate the DSCR ratio. You do not need a signed lease or existing tenants to qualify. This is especially useful for investors executing a BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy across high-demand markets like Columbus OH, Nashville TN, Indianapolis IN, and Philadelphia PA.

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat — a wealth-building strategy where you acquire a distressed property with a hard money loan, renovate it, rent it, then refinance into a long-term DSCR loan to pull your equity out and fund the next deal. Sab Tera Lending supports the full BRRRR pipeline: we fund the acquisition and rehab with our Fix & Flip loan, then we can refinance you into our DSCR Rental loan once the property is stabilized. One lender, full cycle, available across all 20 service states.

Our DSCR Rental loan covers 1–4 unit non-owner-occupied residential investment properties: single-family residences, duplexes, triplexes, and fourplexes. For 5+ unit apartment buildings, our Multifamily 5+ loan program applies. DSCR loans are available for both purchase and cash-out refinance across all 20 states including New York, New Jersey, Florida, Ohio, Pennsylvania, Virginia, Michigan, Massachusetts, Kentucky, Tennessee, Indiana, Louisiana, and Mississippi.

We require a minimum 1.0x DSCR — meaning the monthly rental income must at least cover the full monthly PITIA payment. Higher DSCR ratios (1.2x–1.5x) qualify for lower rates and higher LTV. For deals with DSCR below 1.0x, contact us — depending on deal strength, LTV, and borrower profile, exceptions may be available. We underwrite on a case-by-case basis with no rigid cutoffs.

A bridge loan is short-term financing that "bridges the gap" between your immediate capital need and your next permanent financing event. Common uses include: acquiring a property before your current property sells, purchasing a non-stabilized property before it qualifies for permanent financing, funding a value-add multifamily deal before refinancing to agency debt, or buying at auction where speed is essential. Sab Tera Lending offers bridge loans from 9.5% IO with same-day commitment letters and 7-day close capability across all 20 states.

The terms are often used interchangeably. In practice, hard money loans typically refer to fix & flip and rehab lending where the loan covers both acquisition and renovation. Bridge loans typically refer to short-term acquisition financing where no major renovation is planned — the exit strategy is a sale or refinance. Both are asset-based, short-term, interest-only, and close faster than conventional financing. Sab Tera Lending structures both products across all 20 service states.

Our bridge loans: rates from 9.5% interest-only, terms 6–24 months, up to 90% LTV, minimum loan $50,000, available for 1–4 unit residential, multifamily 5+, and commercial properties. No income verification, no credit score minimum, no prepayment penalty, no upfront fees. Same-day commitment letter, close in 7 days. Available across all 20 states including New York, New Jersey, Florida, Texas, Ohio, Pennsylvania, Virginia, Michigan, Massachusetts, and all other service states.

Our target close time is 7 business days for Fix & Flip and Bridge loans, and 14–21 days for DSCR Rental, Multifamily 5+, Ground-Up Construction, and Commercial loans. We issue same-day commitment letters for complete deal submissions. For comparison: conventional lenders take 45–90+ days. Competitors like Kiavi average 10–14 days for fix & flip. Our 7-day close is backed by direct lending from our own capital — no committee approvals, no bank dependencies.

To receive a term sheet: just the property address, purchase price, estimated ARV or value, loan amount needed, and your contact info. To close you will need: government-issued ID, entity documents (LLC operating agreement, certificate of formation, or corporate docs), purchase contract, scope of work and contractor quotes (for fix & flip), bank statements (2–3 months for proof of reserves), and title information. No tax returns, W-2s, or income documentation required for any loan program.

Our 5-step process: (1) We review your submission same-day and issue preliminary terms. (2) A formal appraisal or BPO is ordered on the property. (3) You receive a formal commitment letter. (4) Title is ordered and loan documents are prepared. (5) We close and fund — same-day wire on the closing date. The entire sequence from signed term sheet to funded loan takes as few as 7 days for short-term products.

For Fix & Flip and Bridge loans on smaller deals, we may use a Broker Price Opinion (BPO) rather than a full appraisal — this is faster and less expensive. For DSCR Rental loans, a full appraisal with rent schedule is required. For Ground-Up Construction, a cost review and as-built value appraisal are ordered. For Multifamily 5+ and Commercial loans, a full appraisal is required. Appraisal costs ($300–$800 depending on property type) are the borrower's responsibility and disclosed in your term sheet.

Yes — and we encourage it. Most of our borrowers close in an LLC, corporation, partnership, or trust. We have no additional restrictions or requirements for entity closings. Closing in an LLC provides liability protection, tax flexibility, and better asset separation for portfolio builders. For foreign nationals, entity closing is common and we are fully experienced with these structures across all 20 states.

Our current starting rates by program:

Fix & Flip Loans: from 9.5% interest-only
Bridge Loans: from 9.5% interest-only
Multifamily 5+: from 9.5% interest-only
Commercial Hard Money: from 9.5% interest-only
Ground-Up Construction: from 10.0% interest-only
DSCR Rental Loans: from 6.5% (30-year fixed)

Rates vary based on LTV, loan term, property type, borrower experience, and market conditions. The national average hard money rate was 10.57% in Q4 2025 (Lightning Docs data). Our rates are competitive because we fund from our own capital with no middlemen. Contact us for a deal-specific quote.

All fees are disclosed upfront in your term sheet. Typical closing fees: origination fee (1–2 points on the loan amount), appraisal or BPO fee ($300–$800 depending on property type), title and closing costs ($1,500–$3,000). Zero upfront fees. Zero prepayment penalties (except step-down on some DSCR products). No junk fees, no processing fees, no application fees, no documentation fees. We charge less in total fees than competitors who require $1,500–$2,000+ in doc fees before even approving your loan.

No. Sab Tera Lending is a direct lender — we fund from our own capital. There are no broker fees, no middlemen, and no third-party markup on your rate or fees. You deal directly with the decision-maker on every deal. When brokers place loans through us, that is between you and your broker — our pricing to borrowers is always direct-lender pricing.

One point equals 1% of the loan amount, paid at closing. On a $200,000 loan, one point = $2,000. Points are a component of the lender's yield and are separate from the interest rate. We charge 1–2 origination points depending on deal size, LTV, and loan program. Points are always disclosed in your term sheet before you commit to the loan — no surprises at the closing table.

We finance: single-family residences (SFR), 2–4 unit multifamily (1–4 family), 5+ unit apartment buildings, mixed-use (residential + commercial), retail strip centers, office buildings, warehouse and light industrial, self-storage, hospitality, and vacant land for ground-up construction. We lend on distressed, vacant, REO (bank-owned), and properties needing full gut renovations — the exact deals conventional banks decline across all 20 states.

Yes — this is a core strength. Conventional lenders require properties to be habitable, occupied, and generating income. Sab Tera Lending regularly finances vacant homes, properties with no functioning systems, fire-damaged structures, flood-damaged properties, condemned buildings being redeveloped, and REO/bank-owned properties. For DSCR loans on vacant properties, we calculate DSCR using market rent from the appraisal rent schedule rather than actual rent.

Yes — that is exactly what our Fix & Flip loan is designed for. Gut renovations, full system replacements, structural work, additions, and complete overhauls are our most common loan scenarios. We underwrite to the after-repair value (ARV), not the current as-is value, which means we can finance deals that would be impossible through conventional channels.

Based on deal flow and investor activity across our 20-state footprint, the highest-activity markets in 2026 include:

Northeast: Long Island NY (Nassau/Suffolk), Bronx and Brooklyn NYC, North Jersey, Philadelphia PA suburbs, Boston MA suburbs
Southeast: Miami and Tampa FL, Atlanta GA, Charlotte NC, Nashville TN, Birmingham AL
Midwest: Columbus and Cleveland OH, Indianapolis IN, Detroit suburbs MI, Louisville KY, Cincinnati OH
South: Houston and Dallas TX, Richmond and Northern VA, Baton Rouge LA, Jackson MS, New Orleans LA

We fund deals in every county across all 20 states. Call (516) 336-9293 for a market-specific conversation.

Yes. Entity lending is our standard. The vast majority of our borrowers close in an LLC or corporation. We accept: Single-Member LLCs, Multi-Member LLCs, Series LLCs, S-Corps, C-Corps, limited partnerships, and land trusts. We do not require personal guaranties that override entity protection, though a personal guaranty or cross-collateral guaranty may be required depending on deal structure and LTV.

Yes. Sab Tera Lending lends to foreign nationals investing in US real estate across all 20 service states. Non-US citizens can borrow for Fix & Flip, DSCR Rental, Bridge, Ground-Up Construction, Multifamily, and Commercial loans. Requirements: valid foreign passport, ITIN or EIN (for entity closings), US bank account or proof of wire transfer capability, and a clear deal with strong exit strategy. We have extensive experience with Canadian, European, and international investors — especially in New York, Florida, and Texas markets.

Yes. First-time real estate investors can qualify for our Fix & Flip, Bridge, and DSCR Rental loans. We evaluate the deal first — if the numbers support the loan, experience is secondary. For first-time borrowers, we may require slightly more equity (lower LTV), a licensed general contractor on the rehab, and a stronger exit strategy document. Ground-Up Construction loans typically require prior construction experience or a licensed GC managing the build.

Yes — and self-employed investors are among our most common borrowers. Because we are an asset-based lender with no income verification requirement, the self-employed status has zero impact on loan approval. We do not request tax returns, Schedule C income, or business bank statements for qualification purposes. Your deal's property value and exit strategy are what matter.

Sab Tera Lending lends across 20 states:

🗽 New York — including Long Island (Nassau & Suffolk Counties), all five NYC boroughs, Hudson Valley, and upstate markets
🌿 New Jersey — all 21 counties including Newark, Jersey City, Trenton, and southern NJ
⚓ Connecticut — Fairfield, Hartford, New Haven, and all counties
🌴 Florida — Miami-Dade, Broward, Palm Beach, Tampa Bay, Orlando, Jacksonville, and statewide
🌵 Texas — Houston, Dallas-Fort Worth, Austin, San Antonio, and all major markets
🔔 Pennsylvania — Philadelphia, Pittsburgh, Allentown, and all counties
🌻 Ohio — Columbus, Cleveland, Cincinnati, Dayton, Akron, and statewide
🏛️ Virginia — Northern VA/DC suburbs, Richmond, Hampton Roads, and statewide
🏎️ Indiana — Indianapolis, Fort Wayne, South Bend, and statewide
🚗 Michigan — Detroit metro, Grand Rapids, Ann Arbor, Lansing, and statewide
🦅 Massachusetts — Boston, Worcester, Springfield, Cape Cod, and statewide
🏇 Kentucky — Louisville, Lexington, Bowling Green, and statewide
🎵 Tennessee — Nashville, Memphis, Knoxville, Chattanooga, and statewide
🌸 Mississippi — Jackson, Gulfport, Biloxi, and statewide
🎷 Louisiana — New Orleans, Baton Rouge, Shreveport, and statewide
🌲 North Carolina — Charlotte, Raleigh, Durham, Greensboro, and statewide
🌴 South Carolina — Charleston, Columbia, Greenville, and statewide
🍑 Georgia — Atlanta, Savannah, Augusta, and statewide
🌾 Alabama — Birmingham, Huntsville, Montgomery, Mobile, and statewide
🏝️ Long Island, NY — Nassau County, Suffolk County, all towns and villages as a dedicated submarket

Yes. We expanded our lending footprint significantly in 2025–2026. We now lend in Ohio (Columbus, Cleveland, Cincinnati, Dayton, Akron, Toledo), Pennsylvania (Philadelphia, Pittsburgh, Allentown, Harrisburg), Virginia (Northern Virginia/DC suburbs, Richmond, Hampton Roads, Roanoke), Michigan (Detroit metro, Grand Rapids, Ann Arbor, Lansing, Flint), Massachusetts (Greater Boston, Worcester, Springfield), Kentucky (Louisville, Lexington), Tennessee (Nashville, Memphis, Knoxville, Chattanooga), Indiana (Indianapolis, Fort Wayne, South Bend), Mississippi (Jackson, Gulfport, Hattiesburg), and Louisiana (New Orleans, Baton Rouge, Shreveport). All six loan programs are available in every state. Visit our Service Areas page for state-specific market data and rates.

Our core loan programs and starting rates are consistent across all 20 states. Individual deal pricing varies based on LTV, property type, loan amount, and borrower experience — not geography. However, some states have specific legal requirements (e.g., attorney state vs. title state closings) that affect closing costs and timelines. We are fully licensed and experienced with closing requirements in all 20 service states. Call us for state-specific closing cost estimates.

We are currently focused on delivering exceptional service across our existing 20-state footprint. If you are investing in a state not listed, contact us — we evaluate lending scenarios in adjacent markets on a case-by-case basis. Our primary focus remains on achieving page 1 market presence and same-day service in every county of every state we currently serve.

Yes. Sab Tera Lending issues free same-day Proof of Funds (POF) letters across all 20 service states. There is no cost, no credit check, and no obligation to borrow. POF letters are issued the same business day — often within hours of your request. For urgent needs, call (516) 336-9293 and we'll issue it immediately. Request yours at sabteralending.com/proof-of-funds.

A POF letter is required by sellers and listing agents when you submit an offer on an investment property. It confirms you have access to financing and are a serious buyer. Our POF letters carry extra weight because Sab Tera Lending is a direct lender — sellers know we can actually close in 7 days. POF letters are valid for MLS listings, off-market deals, wholesaler assignments, foreclosure auctions, tax sales, and short sales across all 20 states.

No. A POF letter reflects our intent and ability to fund your deal — it is not a formal loan commitment. A formal commitment letter follows after you submit a complete application, the property is appraised, and underwriting is complete. That said, our POF letters have an industry-leading credibility level because our track record of closing in 7 days is well-established with agents and sellers in all 20 markets we serve.