Hard money lenders who don't look at your credit score

Financing, Hard Money Lenders, Private Money
1

Hello,

I have found what looks like a great deal on a coop in Brooklyn that I want to jump on. When I tried to get a HML to look at this deal he told me they need two things from me before we can do business, one my credit score, and two a list of my liquid assets. I did not qualify to get a hard money loan from his company.

Can anyone point me in the direction of a HML who will look at the actual deal as opposed to my credit score and assets when determining how much they will lend for first lien?

Any help/guidence would be appreciated.

Thanks,

Paul

2

You’ll probably need to look for local private money individuals where the property located.

Barely any hmls doing arv rehab loans look at just the deal. Almost all want to make sure there not working with constant late payer and the person can afford to make payments. Can you afford to make payments? Hmls won’t advance rehab money upfront, $ is needed to start the work and get reimbursement for work completed inspected. Do have funds to start work?

Just how much in liquid capital do you have?

Private lenders are more inclined to make riskier loans like what you’re looking for. However, they won’t be based on the arv but instead the as-is value with no rehab funds. Maybe like 50-60% ltv.

If you have low credit, no liquid capital, and can’t make monthly payments you may be better off wholesaling or assigning deals.

3

Equity based rehab lending is a rarity these days—although it still exists, I’m not aware of any that are offered in the NYC area…

Regards,

Scott Miller

4

every hard money lender I know wants a FICO score. If you find one that doesn’t let me know, I have some swamp land in Florida I need 135% financing for.

:shocked

5

I posted a response to your comments last night—not quite sure why it was deleted.

It’s ironic that you mention FL, there is an equity based rehab HML that doesn’t concern itself with FICO, income, employment or tax returns.

Regards,

Scott Miller

6

LOL

7

Jason… most hard money lenders dont care about the actual fico score… if they do, then they are securitizing the loan (aka selling to wall st.)… most of these lenders went out of biz when wall st stopped buying the equity loans (short lived trend after sub-prime fallout)…

However, true hard money lenders will look at credit. they dont care about the number… more importantly, what was late? when it was late? why it was late? how long it was late? and what did they do to remediate the situation?

8

Due to the increasing default on mortgage loans my finding is that all Hard Money Lenders wants your credit score and wants to see that you have liquid assets in the bank or in property that you own. I don’t think there is a lender out there that don’t ask you for your credit score.