Re: What are the hard money terms in your area ? - Posted by michael e. v. knight
Posted by michael e. v. knight on January 16, 2003 at 15:30:56:
Hi DK,
i will use an example for everyone:
Current Appraised Value: $100,000 as is
Fixed up worth $145,000
Purchase price $60,000
For investor 90% of 100,000= $90,000 loan, the $30,000 difference between what you paid and the total loan amount is held in escrow until work is finished, inspected and certificate of occupancy is provided by city/town building inspectors office.
For owner occupied they will go to $97,000 depending on fico of course.
Again we are talking 7 1/2% interest rate and only 3 1/2 points. The best thing is this is a regular loan that can go as long as 30 years, no balloon!
A fico of at least 620 is required and they do check credit. But it is cheaper than any hard money i have seen and all the hard money companies are checking credit too. If your fico is low, bring in a partner with a higher fico, 620+, to do the deal with you.
If you need more info just email me.
Happy financing,
michael e. v. knight