Hard money Lending requirements

[Tyler Stetz]

When approaching a hard money lender what are the most significant things they look at in a borrower. Do they look at your DTI ratio, do they require a certain amount of income based on loan value? Etc. I know they want to see financials of the deal and things like that, but I'm wondering more about personal credit type of information.....Very New but looking to learn more about the HML process.

[Darrin Carey]

@Tyler Stetz Here's what I look for, in priority order, to approve a hard money loan.

1. THE DEAL. Purchase price, rehab, ARV, etc.
2. EXPERIENCE. First timers are ok, but old timers get more flexibility.
3. DOWN PAYMENT. You need skin in the game. If you won't put money in, why should I?
4. CASH & CREDIT RESERVES. Unexpected expenses will arise. Can you cover it?
5. CREDIT SCORE. Deadbeat filter. Can impact 3 and 4.
6. DTI. Generally I just don't care. If it's near or over 100% without this loan, I'll dig deeper.

1-4 are the real keys to getting it done. If you look good there, the last two rarely matter.