Purchase Or Refinance Hard Money

Purchase or​ Refinance Hard Money
Hard money comes in​ many flavors; one of​ the​ most common is​ mortgages .​
Using the​ owner’s equity in​ real estate,​ hard money lenders generally lend 65% - 70% of​ the​ value of​ real estate property .​
In general,​ hard money mortgages are used for commercial purposes .​
However,​ they can also be applied to​ residential properties .​
In this instance,​ the​ loan is​ generally referred to​ by its more genteel name: a​ non-conforming mortgage .​
Lending criteria for hard money mortgages are fairly simple .​
The loan is​ based on​ the​ value of​ the​ ‘subject property’ either real estate owned or​ about to​ be purchased by a​ borrower .​
If the​ borrower is​ buying property,​ the​ value of​ the​ real estate is​ defined as​ the​ actual purchase price of​ the​ property .​
If the​ borrower needs hard money for a​ refinance situation,​ the​ ‘value’ is​ determined by a​ written real estate appraisal .​
If you are looking for a​ hard money refinance loan,​ the​ lender will want to​ know when you purchased the​ property and what you paid for it .​
If you bought a​ property a​ month ago for a​ specific sum,​ the​ lender will be disinclined to​ lend you more than that purchase price .​
Once you own the​ property for about a​ year,​ especially if​ you have put some money,​ sweat equity,​ or​ both into the​ property,​ you can get a​ new appraisal and get a​ loan based on​ the​ new,​ improved value of​ the​ property .​
This is​ called ‘seasoning.’ Be sure you have seasoned your property before going out for a​ refinance mortgage at​ a​ significantly higher value figure than what you paid for it .​
For more information on​ private money lending see some of​ these websites:

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