Hard Money Lending and Fees

[Ezmina Lalani]

Hi, 

I am working with HML which is charging a 0% origination fee, but we have a loan processing fee and other legal fees adding to $1800.

is this normal?

Thanks,

EKL

[Robin Simon]

Quote from @Eliott Elias:

Most lenders charge origination, application, processing, and underwriting fees. No points is unheard of.

 I would agree with this - key question is if the processing and legal fees are charged up front and non-refundable or only collected at close on the settlement statement (through a title company / escrow).  If these are upfront, then I would say red flag because Hard Money Lenders are going to earn a lot of their returns on points, so only real reasonable explanation is if they are just calling the points these other fees, but collecting them at close anyways