Too good to be true? Hard Money Lender.

[Courtenay Matthews]

I found a program through a hard money lender that almost seems too good to be true.

This is my first experience with a hard money lender so I’m not certain. The details are as follows:

- Funds 100% of purchase at closing zero money down.

- 100% of the rehab (released in draws).

- 9 month term with interest only payments.

- 9.5% interest rate

- Total deal must be 67% of the ARV or lower

- No prepayment penalty

To qualify:

- Must own primary resident (lender to place a second lien on property.

- 690 credit score

- Borrower must have no less than 15k (or 15%) of deal cost in reserves.

What are the downsides here? Thanks!