Hard Money Loans difficult to get, most want you to have 650 credit score

Financing, Hard Money Lenders, Private Money
1

Gone are the days of poor credit loans, the loan companies listed on the left side of this page, will not deal with anyone with a credit score below 650…

2

I work with investors who offer private funding for commercial projects. They do have specific requirements since they’re lending their own money, but there are no credit or capital requirements. They loan on all types of commercial projects.

3

Hard money is available on ever corner of the USA. All you need is skin in the game like 20% to 25%.

4

Hard Money lenders have, for the last 4 years, begun qualifying their borrowers as well as the properties. 10% to 20% down is the new “norm”. Most if not all HMLs do require credit scores of 620 to 650. We want to know that a borrower has a good payment history and can get a loan to refi the property at the maturity date. This is just good business.

Rob

5

All that is true. And you guys are expensive to boot. That’s why I don’t use you. You’re slow and expensive. So, I use private money with much lower interest, no points, and longer terms, if not a faster delivery.

And for some reason I’m never asked about my ability to repay, or have my credit reviewed. Good luck with your business model.
:beer

6

The problem for people like me, is that I have a low credit score because I have NO credit, not bad credit. :banghead Only about $3000 to cover closing costs.

If I can get someone to give me a chance for a few years :help (while I go the traditional method, and build my credit score) then I can refi in a few years. That is the basic plan, but I’m still working out the kinks.

Alexia

7

I want to buy multi-family properties, I have found lots of owner carry financing but I do not have the down. I have found HML and private lenders want 20-30% skin which I don’t have. I do have a 714 credit score and have 2 rental properties. Given that I can’t seem to progress forward. Any ideas??? Thanks.

8

You need to build up credit. Get a credit card and always pay the card off every month. This way you build credit but not dept. Getting a car loan is another good way to build credit.

Next, save every penny you possibly can to put towards a down payment. Traditional financing and hard money is going to require 20% down. This is a must.

9

Though painful and time consuming the best option is just to work on your credit score.You can start out by having a credit card and keeping the balance low.
You can also take out a small loan.If you take out a small personal loan from the bank, and pay it back over time, it can help your credit score.
Once again, it will show all three major credit bureaus that you are responsible and pay your bills on time.

Typically, local banks and credit unions will give you the best deal on a small loan, so consider stopping by and seeing what kind of deal they can give you.