Wanting To Help Someone Get a Loan Despite Circumstances?
Do you have a client, friend or family member who has bad credit? Doesnít qualify for a conventional loan? Needs fast cash and donít know where to refer them? Send them to us.
Hard Money and Private Money loans are in much demand today and for a varity of reasons. A hard money loan is the same thing as a private money loan. This is a specific type of asset-based loan financing through which a borrower receives funds secured by the value of a parcel of real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution. Hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings are occurring.
Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the biggest loan one can expect would be between 65% and 70% of the property value. That is, if the property is worth $100,000, the lender would advance $65,000Ė70,000 against it. This low LTV (loan to value) provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.
Sun Pacific Mortgage & Real Estate has been in the private money lending business for over 20 years and we have the experience. CALL US at (707) 523-2099.