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..
I would not pay anything up front. Sounds like a scam. Even if it isn't, there's too many legit options out there that don't charge anything up front.
@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?
@Ryan Blake thanks for the advise. I'm trying to find a sold company to work a deal I have on the table.
@Jay Hinrichs , I appreciate your response. My other deals were in fact funded by myself. So I just want to free up my funds and establish a relationship which a a couple companies. Which one would you recommend, if any?
@James Yancy II I have relationships with plenty of lenders in this space and would be happy to connect with you to discuss financing.
@Kristen Duggan , Thanks! I'm seeing alot of companies, but providing them with my info is scary. You can reach out to me when ever you get time! Thanks again!
@Ryan Blake 250.00
@Ryan Blake who would you 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.
@Matt Pritchard thanks for the advice.
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