Getting Mortgage through a hard money lender. - Posted by Diane Durham

Posted by JoeS on November 06, 2000 at 20:47:03:

In response to your question…disadvantages include a much higher interest rate, usually a short balloon, sometimes a equity share in the deal. A HML will do what it takes for them to feel comfortable with you and the deal. Advantages may be speed, little down, not much care about credit(depends on the State in which you live), and the ability to do multiple deals. Hope this helps.

Getting Mortgage through a hard money lender. - Posted by Diane Durham

Posted by Diane Durham on November 06, 2000 at 07:48:38:

I know there are some hard money lenders that do mortgages for homes. What are the advantages and disadvantages of getting a mortgage from a hard money lender as suppose to from a bank.

INQUIRING MINDS WANT TO KNOW!!!

Re: Getting Mortgage through a - Posted by dewCO

Posted by dewCO on November 07, 2000 at 11:53:43:

Joe pretty much nailed 'em. Also, a potential disadvantage is the LTV, usually they only go to 60% or 65% of the after repaired value of the property. ANd they aren’t particularly generous in figuring their values. But, it is based, usually entirely on the value of the property, not on your credit, etc. This could be a big plus. Normally you’d use this only in relatively quick turn around situations.

Re: Getting Mortgage through a hard money lender. - Posted by William R. Ashbaugh

Posted by William R. Ashbaugh on November 06, 2000 at 20:50:00:

I am a hard money lender. The advantages are this- availability of funds. The disadvantages are the costs and interest rate. In my profession we have a saying- It is not the cost of the funds that’s important but rather the availability. If it costs you an extra $3-5,000 to get your loan approved in 5-10 days, what really are the disadvantages. In order to receive a loan from me a client must first show an exit straregy. If they can’t provide one, I’ll provide it for them because I’m also a licensed banker. Who’s really losing, it’s a win/win situation for both parties.

Re: Getting Mortgage through a hard money lender. - Posted by scott in va

Posted by scott in va on November 06, 2000 at 14:35:24:

Diane I am still very new but I guess it would be determined by the terms of the loan,interested rates etc.Also from what I understand hard money lenders look at the property more than your credit.That is my .o2 but like I said I am new to this.

Re: Semantics 101 - Posted by NJDave

Posted by NJDave on November 06, 2000 at 09:10:09:

For those of you who want to participate in this profession, (and it is a profession) you may want to increase your vocabulary of the trade: when seeking a loan you don’t get a mortgage, you give a mortgage. In exchange for the mortgage that you give, you get a mortgage loan. When you are finished paying back the loan, you get back the mortgage that you gave.

What state(s) do you loan money in? (nt) - Posted by George(OH)

Posted by George(OH) on November 09, 2000 at 10:32:05:

nt

Re: Semantics 101 - Posted by Professional

Posted by Professional on November 06, 2000 at 11:35:35:

Relax, pal. It was a simple question. And if you want to be in this profession and purport to be an expert and answer questions on national newsgroups, you might want to increase your vocabulary to include the term Deed of Trust. Many states do not even recognize a mortgage, whether given, gotten or stuck up you know where. Does it really matter anyway? I don’t think anyone has ever been unsuccessful at this business simply because they did not understand the exact leagal details of a security instrument. Give people some slack and help them out a little instead of ridiculing them.

Re: Semantics 101 - Posted by Diane Durham

Posted by Diane Durham on November 06, 2000 at 09:48:05:

Are you a hard money lender?

It doesn’t sound like you are.

But fyi I am not interested in the profession. It was for a personal use, so therefore your response was unwarranted.

I have spoke to hard money lenders and some of them do personal 30 year fixed loans. My question was what are the advantages and the disadvantages of getting a loan from a hard money lender as suppose a mortgage from a bank. (on a personal level not a professional level)