Hard money pitches

[Marty Happle]

If someone advertises 650 credit score and 70%ARV on a hard money deal, doesn't that mean only closing costs needed for the applicant if the numbers check out? Would it be considered unethical (after a $250 application fee) to say that your score is 655 so we will only give you 60% and you need $30,000 of your own money? Also how many hard money lenders are concerned with the income of the applicant?

[Jon Holdman]

How many HMLs are interested in the applicant's finances? These days I'd say the majority are. And many do want some of your own cash in the deal.

IMHO, though, upfront application fees are unethical. They're a sign the "lender" is at least as interested in those fees as actually making loans. Avoid lenders who have up front fees.