hard money Lending..

5 Replies

Hi my name is Tyree,

Im really curious as to how hard money,and conventional loans work. I spoke with a lender last week and he is telling me, that my credit checked out ok and i can apply for FHA 203 loan. Meaning i can borrow the money and rehab money combined into one loan. Then im reading info about high interest rates with hard money, i guess im trying to find the right answer for me to do my, first deal.

Please help! newbie..

Thanks

Ty

@Tyree Edward Yes, go with the FHA if you can (meaning you have to owner occupy the property). HML is the opposite, they generally won't lend if you're going to occupy the house. HML is short term, generally fix and flips, 6 months to a year, with much higher rates. Conventional is long term: 15 or 30 year term being more of the norm.

Good luck!

- Tom

If your credit is good (740+) then you can also get an unsecured business loan. Write to me at [email protected] and I'll give you the name of a commercial loan broker I really trust.

I am ready to flip my house which my realtor is going to list for 65. Then I am taking that cash to purchase 2 more investor properties to Rehab and sell by end of August 2015. I have excellent credit score and they denied my request because I have no current income (I was 1 of 87 positions transferred to Colorado in Nov 2014.) even though I had excellent credit and own my house outright.  I have made offers with 5K down and a short term LC for the difference, on two small perfect flip properties, however, those sellers want to cash out. No worries I am tenacious and my house will sell shorty after it's listed. :)  Randi

Thanks tom, appreciate all the info.

Originally posted by @Lou Castillo :

If your credit is good (740+) then you can also get an unsecured business loan. Write to me at [email protected] and I'll give you the name of a commercial loan broker I really trust.

 Thanks Lou, i will definitely keep this in mind really appreciate this valuable, info.