Do You Need A Good Credit Score for Hard Money?

[Cheryl Jones]

To begin with, there is a lot of confusion out there when it comes to Hard Money Lenders. Every one of us works a little differently. The question: Do you need a good credit score for a Hard Money Loan? The answer: Yes and no!

It is true that a Hard Money Loan is based more on the property's value for the credibility of the loan. However, investors who secure the loan still like to see good credit as well as assets and a good income from the borrower. What this does is sweeten the pie! With all the borrowers out there who are looking for Hard Money Loans, investors can pick and choose whom they lend to. That's not to say that a 500 Fico will not get you the loan. Investors will still lend on a 500 Fico, but the interest rate is higher due to the risk.

It's very competitive out there for Hard Money Loans for the borrower. All things being equal, a good Fico along with many other factors can be advantageous to a better interest rate with Hard Money Loans.