Using a suggested hard money lender.

15 Replies

With all these up front fees, what is a good hard money lender that doesn't require a application fee? I feel that these fees should be included in the closing not up front. A little understanding goes a long way!

@James Yancy II Upfront fees will almost always be applied to your closing if you choose to go with that company. In Texas we typically see 2.5% points and 12-13% interest for new investors and down to 2% points and 11% interest for more seasoned investors.

I personally have never had to pay an application fee. What amount are they trying to charge?

here are for real lenders in the space.

lendinghome   they do charge 200 bucks

Lima one   no charge

Visio  no charge

Lendingone  No charge

patch of land  no charge.

cant say all but most of the on line guys advertising then hitting you with 500 dollar up front fees are scammers out to steal your 500.. go with a reputable company..

@Nick C.  Yeah, that is what I was thinking. All of my deals thus far I have funded myself. So the information that you all have given is really helpful. Any particular company that you all recommend?

I have dealt with 2 hard money lenders. One in DFW, DFW Hard Money Lender (not sure if they lend nation-wide), and one in Houston, Zues Mortgage (they do hard money nation-wide). Both of these groups don't charge an application fee.

DFWs current rates are 2.5 points and 13% interest up to 90% LTV (this is loan to value which means you will always have to have 10% in the game as the project progresses) and up to 75% of the total project.

Zues' current rates are 2.95 points and 10.95% interest (interest is only paid on money that has been drawn - only place I have seen that does this). They follow the same LTV and total project ratios.

Hope this helps. I would only go this route if you can't qualify for a regular conventional mortgage or if you don't have someone you can privately lend from.

@James Yancy II   You should never pay anything upfront.  Are you buying in KC?  There should be no problem finding 2% origination fee and 12% interest rate.  If you have any experience at all, 10% interest is easily obtainable.  Depending on the program, you can get 80%-90% of purchase price + 80%-100% or rehab $.  If you like, connect with me and we can talk about your options.  

The only upfront fee Accolend aka Asset & Lending and Loans have is the $150 credit check and your appraisal which you pay directly to the appraiser. No application Fee. 

@James Yancy II I've used a few HML's here in KC. I prefer banks now. But I still keep one of them on call in case I just need something a bit more creative than my bank can do.

Shoot me a note, I'm happy to recommend the company I prefer.  

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