Hard money loan for the first time - what were your terms?

Question

Hello everyone.

I reached out to a hard money lender and the terms they are able to provide are 12% interest only payments for a year + 4 points.

I'm considered as "Newbie" for the lender as i never sold any of my properties (Just refinanced / took a HELOC).

I have an excellent credit score (Over 740), a house worth over 60K with no mortgage on it + access to 40k HELOC which i use as my emergency fund.

I was just wondering if those terms are too high or it's a part of "getting my feet wet" terms?

Boris Grinberg · Answer

@Jo Weiss 12% interest + 4points is very high, even for high LTV loans.

As a lender, it is not easy to opine/comment because I am not sure what other terms where offered to you. But for 740 Fico score our rates will be between 8.5-9.5% rate and no points for LTC up to 85%

Do you homework, take a look at other hard money lenders. 12 and 4 seems very high.

We are happy to engage. Please PM if you have other questions.

Hard money loan for the first time - what were your terms?

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