Santa Fe, NM · Member since 2016 · 20 posts · 6 votes
I'm trying to pull money together to purchase a fixer upper. This will be my first home purchase. I'm going to be a little short on this foreclosure so I was considering a hard money lender. I don't know what lenders require to see before they lend. Do lenders have minimums on the amount borrowed ? What are the average percentage rates lenders charge? Any other information that you might think a new comer might find helpful!
Thanks!
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
9y
Different lenders may have very different terms and requirements. Many will have minimum amounts they will lend (or minimum charges for small loans). The percentage rates will vary between lenders but also depending on the type of project, the location, the loan to value, the amount of the borrower's contribution, etc. The best way to understand the prevailing rates and terms in your area is to contact the lenders directly or visit their web pages if they have some. If you have a local REIA it would not be unusual to find several lenders in attendance at the meetings.
Specialist · Los Angeles, CA · Member since 2016 · 221 posts · 58 votes
9y
Start contacting different HML now and find out if they'll fund the property you have in mind. Not all will fund a property just because you think it's a good deal.
Their rates will vary based on your experience. They typically fund up to 85% of the loan amount. Rates from 9-11% and charge points from 2-4pts. Good luck.