I’m a real estate broker in Indiana. I have accepted sales contracts on 2 properties. My previous hard money lender decided to pull his financing and go play the stock market. There was not a problem with my performance on any of the deals that we did. He just feels like he can get a better return in the stock market. This leaves me holding the bag.
The first property has an after repaired value of $216,000. I have it bought for $122,500. It needs about $12,725 in repairs. I need $136,000 to put this deal together. The loan to value is at 63 percent.
The second deal is a garden home with an after repaired value of $139,000. I have it bought for $99,000. It only needs about $1,500 in repairs. I need $96,000 to put this deal together. The loan to value is at 69 percent.
Hey guys, I have a borrower that I am trying to quality for a hard money loan…
however I cannot prove his income… he has a 650 mid fico, 15k reserves,
the ltv is about 65% maybe a little lower… I tried a previous lender(omni, but their asking my borrower for tax returns… have you guys run into this problem with some of the hml’s… I was under the impression hard money did not require all of the red tape as conventional?
HML’s are strongly considered under the actual property, not the buyer. They won’t care too much about the credit score. How much research has he/she done on the prop? How accurate are the comps? What is the trend of the neighborhood? Anything happening in the area that maybe the buyer doesn’t know about?
Hey Allen, I am actually a Mortgage Loan officer myself but i specialize in the conventional investor financing… I actually structured the deal myself, the comps are strong, the numbers work… I am in the Atlanta, area, and its just some of the hml’s are starting to get a little picky…income documentation, I want to know if any of you are also experiencing this.
