HML and Mortgage Company

Financing, Hard Money Lenders, Private Money
1

Hi, I am new to the world of HML so if someone could help me fill in the blanks I would really appreciate it. I am buying some investment property and my subprime mtge company works with hard money lenders. From my understanding the HML will loan me 80% LTV. I will have 2 closings. One with the HML, contingent on the loan (refinance) being approved by the mtge company (2nd closing). This will prevent me from putting any money down. I don’t understand how the HML will help me avoid any money down with the mtge company when he is only loaning me 80%. Also, is he going to own the property until I close with the mtge company?

Any help is greatly appreciated!

2

Your mtg co. making the 1st loan will tell you IF it’ll allow you to get a 2d for the down payment or balance.

Some will, some won’t and you can’t legally NOT tell them if you’re giving some pvt lender a 2d…you MUST disclose this or you’re probably committing felony fraud.

As a HML broker and lender I can tell you that I do have loans where there’s both a new 1st and new 2d, happening simultaneously and one escrow takes care of all the paperwork for both loans simultaneously…and they take great care to record the 1st DOT before they record the 2d as that’s really what determines legal priority of loans.