Does the Borrower have to own Real Estate?
Yes, since Hard Money Loans are secured by Deeds of Trusts that are recorded against Real Estate.
What types of property do I have to own?
Most any property can used to obtain a Hard Money Loan. Hard Money Lending standards have different qualifying requirement for each category of properties
What is the Interest Rate for a Hard Money Loan?
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.
What are the costs of a 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.
What are the qualifying requirements?
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.
What are the credit requirements?
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