All Forum Posts by: Account Closed

Hard money lenders do not look at your personal finance like w2 and tax return. All they want to know are that you have the down payment and the project will be profitable. So as long as you have these two, you should be able to get a preapproval from a hard money lender. LLC is typical for hard money lenders. I am assuming you are doing project like fix and flip. You don't want this loan go to your personal name too because it will affect your personal DTI. Putting it under LLC doesn't affect you qualify for conventional mortgage to buy your primary home, etc.

Is it a raw land or a finished and ready to build land? Different status of the land determines LTV that lenders can offer. Also, do you have the plan for the development yet? Since land financing is short-term (6m to 1 year) and have high interest rate, if you need long to get the floor plan, architectural plan, and construction permit, etc, land financing may be expensive for you. If you have everything ready, some lenders can finance from land purchase all the way to construction.

You may try the DSCR loan which does not look at your DTI. As long as you have the down payment and the rent income is enough to cover the monthly expense and monthly mortgage payment and you have fairly good credit, you should qualify. The interest rate is a little higher than conventional mortgage, but not crazy, and all the number works.

David Thompson from PMI Amazing Spaces is good.

@Lucas Taylor Is it for new purchase or refi? New purchase typically can do 80% LTV, but refi do 75% is normal now.

Above $75k is fine for me.

@Joe Villeneuve, Just want to clarify again about the extra 20%, it is NOT a cost, it is  paying towards the loan principal. If you total have 10 properties, by the time you sell 8 or 9 of them, you probably already pay off the whole loan.

@Joe Villeneuve, Thanks for your question. It is called partial release. If you want to sell one of the properties, you can go ahead to do that. You will need to pay down the loan principal of the sold property extra 20%. Say you want to sell house A with loan amount of $100k, you sell the house for $150k, then you need to pay down the principal of the loan $120k. You keep the $30k as your own profit. Hope this clarifies.

For the draw process timeline, you'd better confirm with your lender. Typical it takes 3-7 business days from you request to receive the funds.

HML does NOT require W2 income and tax returns and only considers borrower's credit score, borrower's experience, and cash flow of the properties. The interest rate is a little bit higher than conventional residential mortgage, you look around 5% now.