Many hard money loans are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan to value ratio is 65-70%. That is, if the property is worth $100,000, the lender would advance $65,000-70,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.
Hard Money Loans – Programs
*NO SEASONING OF PROPERTY OWNERSHIP REQUIRED
* All Property Types – OK
* Rehab All Conditions – OK
* No Doc – Stated Income – OK
** Easy make sense underwriting
Loan Amount: $150,000. – $7,000,000.
1 – 5 Year Term
Rates: 7.50% – 12.50%
Points: 2% – 4%
No pre-payment on some loan programs, based on rate & terms
No upfront fee charges