What type of collateral is required for most hard money loans? If any?

And if I have no assets, will a hard money lender deny my request for a loan or severly lower the LTV ratio?

How much money do they require you to have in the bank? 1-2 months PITI? Or more?

P.S. Is there another (shorter, simpler) term for Hard Money Loan that real estate investing professionals use? Is a hard money lender the same as a private mortgage lender?


What are you trying to do. Usually hard money is 70 ltv.
Give a brief over view of what you are trying to do.


Your Hard Money Loan Will be secured by the asset you are buying if they approve.If they dont like what your buying your not getting the loan.Hard Money Lender/Loan = HML. Typical deal Im used to is . I pay 10% of the value of the loan which is usually 70% of the ARV(Appraised Retail Value(after all repairs)) plus 3 points(which is = to 1 percent of the sale price )If a house is worth $100,000 all fixed up nice and pretty the HML will be $70,000 @15% interest only and no more. So I have to negotiate to buy it for at least $70,000 or hopefully less which means I have to come up with $7,000 plus $2100(3 pointsassuming Im buying for $70,000) closing costs which including tax and insurance is usually about 8% of the loan amount.