TREC Residential Sales Contract & Hard Money Loan

[Mark V.]

Hello all... Long time lurker, first time poster here.  I was hoping someone could answer a question for me.

If I wanted to make an offer on a property and was planning to use a HML, how would that be written into a TREC residential contract? There is nothing in the third party financing addendum that lists hard money loans as an option. I've seen some people say to just make to the offer as a cash purchase but I'm kinda leary of that. Are there any other options?

Thanks!

[Jon Holdman]

Given those choices, check "conventional".  Reverse Mortgage is a special mortgage for elderly homeowners and the others are various guarantee programs.  So, in this context, "conventional" covers a lot of possible loans, not just "conventional" in the sense of "a  residential mortgage loan that meets the Freddie/Fannie rules".  More specifically, hard money loans are generally considered "commercial" loans.  The process is roughly the same as getting a Fannie/Freddie loan but the terms are different.