All Forum Posts by: 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.

Hi Andrew,

I agree.  It has to make sense for the borrower and the lender.  Equity is the key!

Allow me to help you understand the Hard Money Process a little better.  When we loan money in what is known as a Hard Money Loan, we are working with investors.  These investors have "Private Money", meaning their own money to lend.  (The funds can come from Hedge Funds as well).  As such, they are looking to make a profit on what they lend.  Having a good credit score does matter!  Investors aren't as shy about lending their money if a borrower shows financial responsibility.  A borrower who applys for a Hard Money Loan cannot go through a bank to be qualified because they: 

1.  Have less than perfect credit

2.  Are self-employed and cannot verify their income

3.  or short time on the job

Due to these main factors and other considerations, borrowers will go the Hard Money Loan way.  Keep in mind Hard Money Loans are for non-owner occupied properties and are to be used for business purposes such as fixing/flipping the property.

As far as if the borrower defaults on a 200K loan, No we don't lose that money.   The property is the "security instrument" in the loan.  This means that if a borrower defaults, we foreclose on the property.  Hard Money Lenders such as us, mitigate our potential loss by making loans based more on the property value than the borrower.

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 many times 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.

Hello Hip,  Yes, you can find me at:  www.maecapital.com/cheryl

Awesome James!  I will be providing more information as it becomes available.

Sacramento home sales remained strong this year and similar to last year.  We saw sales peak to 1616 total home sales in September which was about 85 homes more than last year at this time.  The Summer saw home sales peaked to 1734 in the month of August and October stayed the same as last year.  November dipped by only 65 homes as compared to last year.  The jury's still out for December.

Interest rates have inched into the 4's, but those are still great rates so I don't see buyers slowing down anytime soon,  I think Sacramento will still see strong home sales this year too.

Looking forward to a great year in 2017!  Rates are still low and it's still a seller's market.  Those are two great formulas for both buyers and sellers.  Investors will see lots of opportunity as well.  It's going to be great!

Hi Robin, Thanks for your interest.  Most of our loan programs are in California, but we can do investment properties in the Illinoise area.  We have competitive rates and fees.  Do you have something you are working on?

I have Easy financing terms for your Real Estate Investment Projects.  If you would like to work with a Great Communicator, let me know!