Posted by IB (NJ) on July 01, 2002 at 15:38:19:
Hi Mark:
I hear that a lot regarding HML’s. But from my experience (calling a bunch of HML’s and working with a couple), your FICA matters. They want to make sure they are not lending to a deadbeat. I don’t think it matters as much as it does in a conventional lending situation, but it does hold wait. Many HML’s just won’t lend if you’re credit score is too low.
HardMoney NJ??? - Posted by Michael_NJ
Posted by Michael_NJ on June 30, 2002 at 18:11:22:
Does anyone know of any HRDMNY LENDERS in NJ that would finance rehab projects that has interest rates available through tier levels of your credit score??
for ex: score 650> interest is 11%
625
Re: HardMoney NJ??? - Posted by Mark W
Posted by Mark W on June 30, 2002 at 22:14:12:
Hard money lenders lend based on the After Repaired Value (ARV) of the property you are purchasing. Your credit score does not matter too much at all. Typically 65% to 70% of ARV is total they will lend with money held in reserve for rehab funds that is advanced as work is completed.
As far as rates, they ain’t cheap but look at what they are lending on and if done right (bought right) you can truely have a no money down deal. Expect to pay minimum of a couple points to get this loan and rates in the 15% neighborhood.
Keep in mind this is a short term, asset based loan. It is OK to pay $10,000 in interest and fees as long as you budget for it when you make your offers.
HTH, Mark Williams