What if I've been rejected by other banks and lenders?
TerraCotta is not a bank and we don't think like one. Our proven underwriting methodology is geared toward finding solutions for borrowers who elect not to apply to traditional financial institutions.
Can I still qualify for a loan if I have derogatory credit (e.g., payments over 30 days late, bankruptcy, foreclosure, collections, etc.)?
Yes, you may still qualify. However, it will affect the pricing and proceeds of your loan.
What interest rates does TerraCotta offer?
TerraCotta’s loans are competitively priced based on risk. Our interest rates start at LIBOR 1 month + 4.00%.
What loan term can I expect?
We offer short-term bridge loans with maturities ranging from 1 to 5 years, extension options (between 6 to 12 months) may be available.
What loan amounts does TerraCotta offer?
Our loans typically range from $5 - $20 million dollars.
What is TerraCotta’s maximum loan-to-value (LTV) ratio?
What geographic locations do you loan in?
All major Metropolitan Statistical Area (MSAs) in the Western US.
Does TerraCotta require personal guarantees?
Non-recourse loans may be considered on an exception basis. Pricing may be affected.
Are there any broker fees?
There are no broker fees. TerraCotta is a direct lender. TerraCotta cooperates with brokers in broker represented transactions.
What is the process for obtaining a loan with TerraCotta?
The process to obtain a loan is completed in 3 easy phases.
What if I don’t want to apply online?
You may apply by phone by calling 800-693-9708. Or download the loan application here and either email it to us at firstname.lastname@example.org or fax it to us at 800-718-9853.
If I receive an LOI from TerraCotta, am I obligated to take out a loan?
No, there is no obligation to take out a loan from TerraCotta after you have received an LOI. If you sign the LOI and return it with a good-faith deposit, you authorize us to conduct due diligence and to engage third party companies. The loan becomes binding once you execute the loan agreements and the loan is funded.
What is the good-faith deposit used for?
The good-faith deposit is used toward third-party expenses (appraisal, environmental review, title insurance, escrow, etc). An underwriting fee of up to $6,500 may be applied. All unused funds will be credited to the borrower.
What information will be requested?
Exhibit A of the LOI will contain a list of documents that we will require from you in order to reconcile information provided in your application. The list of documents may include borrower financials, property financials, rent roll, operating agreement, etc.
What if I have a question on the status of my loan?
TerraCotta provides you with one point of contact throughout the loan process. Your loan representative will keep you updated each step of the way. If you have questions at any time, please contact your loan representative.
How long does it take to get pre-approved?
1 business day.
How quickly can my loan be funded?
We can fund the loan within two business days after final loan approval. Final approval is given after receipt of the completed loan application, which includes requested documents and third-party reports.
Will you sell any of my personal information?
·How do I know that the information I provide to TerraCotta will be kept safe and confidential?
At TerraCotta we are committed to keeping the financial information you provide us in the course of applying for a loan confidential and secure. Employee access to such information is controlled on a need to know basis and we restrict nonpublic personal information access to those persons who need to know that information in order to provide you with the services or products you ask TerraCotta to provide to you. The information we collect in the course of the loan process, whether public or non-public, is stored in the cloud on the servers of a well-regarded, highly secure data storage company that is SSAE 16 certified.