Angeloabrams, Home Buyer in Philadelphia, PA

What requirements do hard money lenders require?

Asked by Angeloabrams, Philadelphia, PA Tue Dec 6, 2011

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7
Hard Money Lender’s answer
Typical hard money is between 3-5 points and 12-16% interest. In other parts of the country, I've heard it go higher. Shop around though as some lenders with low rates also have lower LTVs.. meaning they will only lend you 70-80% of the after repair value, or something very similar.
0 votes Thank Flag Link Thu Jan 12, 2012
14% might be a little much,
but you can bet your bippy that it's a heck of a lot more than 3.75%!
Are you ready for that?

Good luck and may God bless
1 vote Thank Flag Link Mon Dec 19, 2011
Unfortunately, Bruce is about right... 14% and 4 pts is sort of a rule of thumb, but of course you can negotiate that down as well. They will want some other asset or equity as collateral.

My concern that I always bring up to potential hard money borrowers is: If you cannot finance it conventionally... isn't it probably too risky for you?
0 votes Thank Flag Link Tue Dec 20, 2011
I definitely recommend you work with a mortgage broker to secure hard money. Going to individual hard money lenders on your own would likely be a nightmare and a licensed broker is going to be able to get you better terms and be your advocate in the process
0 votes Thank Flag Link Tue Dec 20, 2011
The number 1 requirement is equity either in the form of down payment in the case of a purchase or in loan to value in the case of a refinance.
0 votes Thank Flag Link Mon Dec 19, 2011
each is unique and depends on the request...what common- 14% int with 5 points.
0 votes Thank Flag Link Mon Dec 19, 2011
Angeloabrams

I'd recommend you go to a few Hard Money Lenders websites. You can download thier Loan Application Packages or you can also call them.

Below are two companies that advertise in the Philadelphia REIA:

http://stonehedgefunding.com/first-steps/
http://www.dixonfunding.com/

Good Luck,

Michael
http://www.CMTrealestate.net
0 votes Thank Flag Link Tue Dec 6, 2011
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