Ph No: 818-266-8848, 818-422-9253
Hard Money Loans can be obtained with most any FICO Credit Score, since there are no specific minimum Credit requirements. Since all Hard Money Loans are not the same, so like other types of loans, the better the credit the better the interest rate
Federal and State laws require all lender including Hard Money Lenders to verify the Borrower’s “The Ability to Pay” for all real estate loans. Since Hard Money Loans are typically funded and arranged on Income Properties, the monthly rental income is looked at to provide the income to pay any proposed Hard Money Loan.
Hard Money Loans have just about the same closing costs categories that the Big Banks have with the exception of Loan Origination Points that often range from “1” to “3” Points. A Point represents 1% of the loan amount.
Most Hard Money Loans have Interest Rates that range from 7% to 12% depending on whether the loan is a 1st or 2nd Trust Deed, the Borrower’s credit & Income and the property’s condition and location.
Most any property can used to obtain a Hard Money Loan. Hard Money Lending standards have different qualifying requirement for each category of properties
Yes, since Hard Money Loans are secured by Deeds of Trusts that are recorded against Real Estate.
The decision to apply and obtain a Hard Money Loan typically comes down to “4”
1. Credit Matters
2. Income Matters
3. Property Conditions
4. Cash needed FAST
If a Borrower has Credit, Income or Subject Property conditions that are not acceptable to the Big Banks, then a Hard Money Loan is a possible option when financing is needed. In addition, when funds are needed FAST for a possible Business or Investment opportunity, and time is of the essence, then a Hard Money loan can provide needed funds much faster than traditional bank financing.
A hard money loan is very much like a conventional loan from the Big Banks, but with easier Qualifying Approval Standards for income, credit and property conditions. Typically interest rates are higher, have interest only payments and shorter loan terms. Interest rates for most Hard Money Loans range from 7% to 12% and have loan terms from “1” to “5” years. Hard Money loans can be closed much faster than loans from the Big Banks.