What is the process after you pay back loan

8 Replies

Would like to know what is the process after i pay back my hard money lender when i wanna keep the property for my self do i use a conventional loan or what other loan would you guys recommend

I've closed out rehab to rentals that initially used a HML using funds from a PML, as well as, conventional bank lending. Right now I'm working with FinanceAmerica.com to see if their loan offer will work for my needs on a Duplex purchase and rehab that is now under a HML.

HML= hard money lender
PML=private money lender

So do you have to pay hml in 90 days or have a year

Originally posted by @Martin Perez :
Would like to know what is the process after i pay back my hard money lender when i wanna keep the property for my self do i use a conventional loan or what other loan would you guys recommend

 HI Martin,

whether PML (private money lender), HML (hard money lender), or just conventional loan payoff its pretty much the same, there are only a couple particulars that differ. Your new lender will order the payoff from the current lender whom may be HML/PML/Conv/etc and the total payoff is called the "payoff demand," typically by attorney or escrow states.

The demand will be placed into attorney/escrow as a "debit," and your new loan you're obtaining from a lender will be a credit on the settlement statement. 

If your new loan or credits is higher than your debits (payoff, closing costs, notary, recording, etc,etc) then you get cash back. A refinance loan where you get money back is considered a cash out refinance.

If the debits are higher than the credits on the settlement then that means you have to bring in cash to close plain and simple.

Just make sure when you're paying off a loan you have the correct contact info to order the payoff because on HML and PML sometimes the contact is a private party or actual person and that "person," may be on vacation or in another country so make sure they are able to fill out the payoff demand form from attorney/escrow so your settlement agent can compile the settlement statement correctly so your closing will not be delayed.

Best regards, 

Finance America

Great rates. But bank level documentation for HML

What is the typical credit score finance America is looking for ?

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