What requirements do hard money lenders require?

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

Help the community by answering this question:

+ web reference
Web reference:


Hard Money Lender’s answer
Hard Money L…, , Wynnewood, PA
Thu Jan 12, 2012
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
Ron Thomas, Agent, Fresno, CA
Mon Dec 19, 2011
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
Mikel DeFran…, Agent, Canton, MA
Tue Dec 20, 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
, ,
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
Gregorio Den…, , San Diego, CA
Mon Dec 19, 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
Bruce Lang, Agent, Philadelphia, PA
Mon Dec 19, 2011
each is unique and depends on the request...what common- 14% int with 5 points.
0 votes
Michael N., Other Pro, Bucks, AL
Tue Dec 6, 2011

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:


Good Luck,

0 votes
Search Advice
Ask our community a question
Financing in Popular Cities in Philadelphia County

Email me when…

Learn more