Hard Money

Should you not be able to obtain a regular mortgage loan. “Hard Money” (“HM”), also called “Private Money”, may be available. HM is a bit pricier than a regular mortgage loan. “Points” paid a broker or lender as a commission typically range from 2% to 6% depending upon the size of the loan and organizations involved. There may be other fees involved. Interest rates are also higher since they are usually based on the property rather than the borrower.

Most HM loans are interest only for a fixed term. After which, the loan balloons and must be repaid. These are usually used for fix and flip properties. While borrowers may be individuals, they usually are business entities that will not occupy the property. Loans latter are not subject the stringent requirements of mortgage loans to non-business entities for non-occupant purposes.

If you are interested in obtaining a hard money loan, please visit our Private Money website by clicking here. That is where you can also obtain a Proof of Funds letter and also obtain property reports.