Q3. Is the Borrower required to own Real Estate?
Yes, because Hard Money loans are secured by Deeds of Trust that recorded against Real Estate.
What types of property do I have to own?
Almost any type of property can qualify for a Hard Money Loan. However, it should be known that there are different Hard Money lending standards that have various qualifying requirements for each type of property.
Q4. What is the interest rate for a Hard Money Loan?
The interest ranges from 7% to 12% and loan is determined on the basis of 1st and 2nd Trust Deeds, Borrower’s Income & Credit and the property’s location and condition.
Q5. What are the costs of a Hard Money loan?
Hard Money loans usually have the same closing costs categories that Big Banks have the exception of Loan Origination Points. The points range from 1 to 3 points. Note that a point represents 1% of the loan amount.
Q6. What are the loan qualifying requirements?
The lender has to verify the Borrower’s ability to pay the loan. According to the State and Federal Laws, Hard Money loans are funded and arranged on Income properties.
What are the credit requirements?
Hard Money loans are obtained easily with FICO credit score, since there are no minimum Credit requirements. The better is the credit the better is the loan.