hard money lender

[Billy Hills]

how does a loan work from a hard money lender I am thinking about trying to borrow 18-25,000 and I keep getting different answers.

thank you in advance

billy

[Andy Collins]

a hard money lender lends based on the value of the property (or "after repaired value"), they will look at your credit, but are not as strict when it comes to your personal credit as, say a bank would be.

Hard money loans aren't designed to be long term, they are for the time to rehab a house and sell it (for a flip) or rehab, put a tenant in it and refinance into conventional (In this case they will be more worried about your credit because they want to make sure you can refinance into a traditional mortgage).

Most of the time you will be paying about 4 points and 12-14% interest (at least that's what I normally pay.

They are not for Owner Occupied houses (I've never seen a hard money lender that would lend for that anyway), but for investment properties (which makes it a lot easier to foreclose on)

andy