HML - What are the odds? - Posted by carson

Posted by John Corey on May 27, 2006 at 06:42:23:

If you find a true hard money lender (those do not focus on credit) then the odds could be very good.

Each HML is different in that they use different criteria. HML tend to be local with a few that are more national.

Some want to see cash reserves. Some want to see verifiable income. Some even ask for a credit score or pull credit to see what you look like. Ed Garcia will label the folks who expect a credit score as non-conforming lenders and NOT hard money lenders.

The ‘letter’ requirement for submitting an offer many times comes from the listing agent. A true lender selling an REO will know that such letters are not binding so the letter is not worth much more than the paper. It is common that agents expect them.

NOTE: The LTV will be lower and likely based on as-is value from an appraisal when you do not supply credit details, etc. When you expect 70% or 75% LTV based on ARV the lender starts to ask more questions. Hence the added risk of the higher LTV comes with added requirements.

John Corey

HML - What are the odds? - Posted by carson

Posted by carson on May 26, 2006 at 23:55:23:

what are the odds of getting a HML to loan to someone with no cash, no income, and decent credit (low 700s), assuming the LTV of the ARV is where they like it (65% to 75%)

Or, What are the chances of them writing me a letter so i can submit offers with intent to wholesale (REOs and some MLS listings)?

Does anyone know of one that could help me out? (minnesota)

Re: HML - What are the odds? - Posted by Rich

Posted by Rich on May 27, 2006 at 15:23:03:

Well, let’s see…Just about every single HML that I know will. Just keep the ARV at the 65 - 70% range.