I been denied for a hard money loan because I do not have $20,000 in liquid assests. I was wondering is that a normal requirement for hard money lenders? Will it be hard for more to quailfy for a hard money loan since i do not have 20k in liquid assests? I have a credit score of 690.
Different HML’s have different qualifications.
However, one thing you will find is true with many of them.
No matter what their qualifications, once you start doing business with one and establish a proven track record, most of these qualifications are out the window and all you have to do is bring them a deal that fits their lending qualifications.
With that said, there are HML’s that will lend based on the property only and regardless of your financial status. However, for this type loan, you can expect to pay even higher rates and fees than normally charged by most HM lenders.
If you do not have the financial assets to meet the qualifications, you have to find better potential deals and find a lender that will work with you.
If you do have the assets, you can usually consider deals that are not so conservative but might still give you the same approximate return due to better rates and terms.
Best thing to do is pick up the phone and start calling other lenders to find one that will work with you in your present condition.
Yes,
There are HML that will do this with no income / asset verfication. All you have to do is fill out the application and have them pull credit.
Most HML will require that you have funds for the rehab upfront or your contractor would have to understand about getting paid in phase after work is completed.
The lender releases funds through a title company by wire for work completed.
Most true HML are solely asset based, meaning that the dealis what qualifies the borrower not the borrower themselves.
Keep looking for one that will meet your requirements