No. normally, lenders want to see a 75% occupancy ratio at the minimum. For vacant building, borrower has to apply for a bridge financing first, re-position the property by either remodeling or rehab and apply for a more favorable rate and terms permanent financing.
People with challenging credit which doesn’t fitted into institutional lenders’ guidelines, lack of income on the tax return or just want a quick closing within 10 days. Therefore, hard money loan is also categorized as a bridge financing, a temporary measure before people can come up with a more favorable long term solution.
Since it is an asset-based, equity-driven loan, there are not much paperwork’s involved except an appraisal. Lenders might need a letter of explanation on borrower’s ability to pay, exit strategy, major degradatory items on the credit report.