Need a hard money lender that will finance up to 75k. My client can put down 5-6k.

Asked by Alan Harper, Houston, TX Mon Apr 29, 2013

Is looking for homes between 40k-75k with after repair values of 90k-120k. He has a 629 credit score with $40 balance on $300 credit card, $1200 medical collection, and $1100 deferred (3yrs) student loans. He is self employed, He grossed 39k, netted 19k in 2012 and grossed 26k, netted 15k in 2011.

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Michael Cheng’s answer
Michael Cheng, Agent, San Jose, CA
Mon Apr 29, 2013
I don't think you should waste time with that search. Private lenders usually push up to 60% financing for borrowers with 10x the income and 30x the cash of that client. He'd be lucky to borrow $5K.
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0 votes
, ,
Mon May 8, 2017
Hard money lenders either lend up to a certain percentage of the current value of the property or they will lend up to around 65% of the ARV (after repair value).…

Many of the hard money lenders who are able to lend 65% of ARV will require that the borrower has sufficient experience in these type of projects.

Your client will likely need much more than $5-6k.
1 vote
John Juarez, Agent, Fremont, CA
Tue Apr 30, 2013
Hard money loans are asset based loans. The amount of a hard money loan is based on the value of the asset…much like a pawn shop loan. The credit, income and general ability of the borrower to repay is of little importance because the hard money lender only lends enough to allow plenty of cushion in case the REAL source of repayment is a distress sale of the collateral. Hard money loans are considered to be high risk and carry a cost in up front points and/or interest rate that reflect the risk. They are also mostly short term in nature compared to a traditional mortgage.

Here are some terms that one hard money lender that I know advertises:

• Fast, easy closings.
• All loans are Interest Only with NO pre-pay.
• Terms - 6 months to 3 years.
• No minimum loan amount.
• No credit score limits.
• Bad Credit, short sales, foreclosures and bankruptcy - OK
• Property can be in various conditions of rehab and repairs needed - OK
• Trusts, LLC’s, Corporations – OK
• Non US Citizens are - OK

Here is another:

"call me when you need hard $$$. We go to 60% LTV with very attractive loan products that are interest only. We lend only in CA & also lend up to 50% LTV on raw land...
We are equity driven - therefore bad credit is ok, mtg lates, etc...We lend with a 350 fico score ..."

NOTE: both are California based lenders.
1 vote
, ,
Mon May 6, 2013
Alan, you may want to try the broker outpost. Many hard money lender tend to reply to requests there..

Have a great day;

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit
Ex-Mortgage Broker of more than 10 years
0 votes
John Broussa…, , Houston, TX
Tue Apr 30, 2013
We can provide hard money loans around 65 to 70% of the ARV on investment properties. Credit is not a issue, this is a asset based loan.

John Broussard
Newbridge Investments
0 votes
What are your fees John?
Flag Tue May 9, 2017
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