Hard Money Loan
Whether refinancing or purchasing, a hard money loan could be your only option.
When considering a hard money loan, it's important that homeowners and home buyers understand the nature of the product. Hard money lending is based upon the property being financed -- not necessarily on the ability of the borrower to repay the loan. Interest rates for hard money loans are very high and rarely are our mortgage originators able to attain a fixed rate product. Hard money loan products can be used to finance owner occupied residential property, non-owner occupied investment property, and commercial real estate properties.
With a hard money loan, risk is everything. They come with very high monthly payments and are not intended as a long term financing vehicle. When faced with no other financing option, a hard money mortgage may simply be the only solution to achieve a short term financial objective. When refinancing into a hard money mortgage, borrowers can get cash-out, up to the LTV cap for your state or local market. However, the LTV cap does include any costs to close.
Hard Money Program Overview:
- Loan-to-values (LTVs) are based upon state and local real estate market conditions. Maximum loan amounts can range from 50% to 70% LTVs.
- Hard money can be used for both residential and commercial property purchases.
- A hard money mortgage can be used for cash-out refinancing or as a pre-foreclosure bailout loan for qualified applicants.
- Interest rate terms are almost always tied to adjustable rate products, with starting rates in the range of 5% to 7% or more above conventional mortgage & commercial loan rates for like products.
- Hard money products typically do not take into account the credit of the borrower.
- In some instances, a borrower can state income only.
- Typically, if using a hard money loan product, you can expect to pay 2 to 6 points and origination fees at closing.
To learn more about financing a home or commercial property using a hard money loan, use our quick quote application.