Posted by Kalonji on March 25, 2008 at 15:26:08:
Liz,
I have a 660 score. Do you know a lender that will fund deals for me? I am stated income.
Real Hard Money in Chicago - Posted by Ophelia Hernandez
Posted by Ophelia Hernandez on April 19, 2007 at 11:48:43:
I am looking for real hard money in Chicago, which is based on the actual After Repair Value of the home, not the borrowers credit. Every place I have looked says a 566 credit score is too low for them to consider. I always thought the purpose of hard money was to base the loan on the value of the house, not the person credit. Is anyone else having this problem? Do you know where I can turn? I need financing on a condo in Chicago
Re: Real Hard Money in Chicago - Posted by liz
Posted by liz on April 28, 2007 at 22:21:14:
yes, there are hard money lender who will do based on equity. if no good credit, they can do 65% of purchase price, then you come up the rest. if you have good cash reserves, they will be willing to do that easy. There are also do 65% of ARV, but they want to see you have money in the deal.
Re: Real Hard Money in Chicago - Posted by Zach
Posted by Zach on April 21, 2007 at 14:25:51:
What you need is an equity based lender that finances off ARV. They will want to view a credit report to see ability to make on time payments but are not concerned with the fico or reserves. There are several lenders out there for this. I sent you an email…
Re: Real Hard Money in Chicago - Posted by Ben Carmona
Posted by Ben Carmona on April 19, 2007 at 14:23:48:
Ophelia,
“Real” hard money, as I understand it, does not incude rehab funds. Typically those loans are based only on the as-is value of the property and will be limited to 60-65% ltv. This would have no credit, income, or assets check.
Most hard money lenders that do rehab loans have addapted themselves to following some set of credit standards. You’ll find that most want a 620-640 score. There are a few that dont have a minimum credit score but still pull to see how the rehabber repays their debts. Those lenders would be more inclided to lend to a rehabber with low scores due to past problems or high balances than they would be for someone who currently cant pay their bills. In addition, the credit would have to match up with the overall feel of the loan. Someone who has never done a rehab themself or is out of the lender’s normal lending area may have a much harder time.
Keep up your posts and requests and continue to look in your local area for private lenders. I’m sure you’ll find something within time.
Ben Carmona