Home Buying in Springfield>Question Details

Angela, Home Buyer in Webster, MA

Hard money lenders require atleast 50% down and if lucky 20% with land as collateral exploitation not charity

Asked by Angela, Webster, MA Sun Aug 25, 2013

There is a large number of people whose loans get denied yet they can afford the homes why has there not been a rise of hard money lenders to cater to this need

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Angela, as a harm money lender myself, I can answer this. It is too expensive for the homeowner for one. Typical hard money is done at 14-18% on short term and 11-14% in the long term.
Second, the respa guidelines and other lending laws prohibit private mortgages over 25k in the first position without being licensed or a federal bank. Since hard money is rarely seen in the second position, the loan cannot be done.
0 votes Thank Flag Link Mon Oct 14, 2013
It is a tough market for now in this area in my opinion. Only patience and proper regulations will get us to a better place in lending over time again in my opinion.
0 votes Thank Flag Link Mon Aug 26, 2013
Due to the high cost nature. Most hard money lenders don't want to deal with the consumer friendly laws.
0 votes Thank Flag Link Mon Aug 26, 2013
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