Im sure i posted this on here a few days ago but for some reason i cant find it so here i go again. I just wanted to know more about Hard Mony Loans, What the pros and cons of going this route for financing if ones credit isnt good enough for the bank to give u a loan. I just want to know as much information about this as possible. Could anyone please embrace me with there wisdom
The hard money lenders I work with look at credit scores - they lend around 70% of the after repair value of the home. Now the problem with these lenders is that the fees they charge are about 3% in origination alone (1% of the loan amount) and thats not talking about all of the other fees you pay to close. I think it comes out to about 5% of the total loan amount. It is best if you can find a bank that will hold the loan and you put 5 to 10% down .... I know sometimes it is hard to get these funds together .. you can search investor loans on the web and you will get several to talk with. Make sure none of the loan have prepays (penality to pay off soon).
check out http://fidelitymutualmortgage.com. you can find a lot of information about hard money loans, hard money loans for commercial real estate. Fidelity mutual mortgage is a mortgage lender from Los angeles California.
