Hard Money LEnders

With anyone’s experience, do HMLS care about what kind of reserves you have in the bank when doing a small rehab and flip? My credit score is about 650, possibly higher?


Hi Brandie, I saw your post on the forum… All hard money lenders are different, it depends on where you qualify… if your Fico Score is 650 or there abouts… Reserves are not an issue…Some times they want to see 6 months “PITI” (Principal, Interest, Tax, Insurance.) But that is for people with scores under 600 (Like ALOT under 600)… You are right on the cusp of conforming and Sub Prime

Thank you, Michael

Yes some HML’s do care about reserves especially if you want a line of credit which I recommend if you are going to do a lot of deals in one month

If you are only going to do a few here and there they are more concerned with the collateral and sometimes your credit.

Some HML’s will alow you to roll your holding costs/mortgage payment in the loan if the LTV is low enough.

Your Credit score will be a nice compensating factor for the HML and they care about that alot more than your reserves. 8)