Why is a Hard Money Lender Asking about my credit? - Posted by Jeff P

Posted by Ed Garcia on February 12, 2001 at 10:26:09:


“Hard Money”, is a term coined by lenders who make loans based on the equity of the property. For him to ask you about your credit is not really a problem because he might want to see the extent of your financial condition. I’ve had borrowers tell me that they’ve had a credit problem, and found out it wasn’t as sever as they had indicated. But for him to make the statement that he did is another thing.

If he had said to me what he said to you. I would have told him that, if I had good credit, I wouldn’t be here; I could go to the bank. It’s obvious to me that this is a broker or lender, that is just trying to see if they can qualify you for a loan that fits their lending criteria.

Jeff, you’re doing the right thing by disclosing your credit condition up front so that there isn’t any misunderstanding.

Ed Garcia

Why is a Hard Money Lender Asking about my credit? - Posted by Jeff P

Posted by Jeff P on February 12, 2001 at 09:43:19:

I have read that hard money lenders only look at LTV. I spoke to a private lender this A.M. who said that with bad credit, I would have a hard time getting a hard money loan, but that he would be willing to work with me. Was he saying this only to try and make me feel lucky that I found someone who would lend me the money, or is there some truth to what he says?
Thanks for the input.
Jeff P

Re: Why is Asking about my credit? - Posted by George

Posted by George on February 13, 2001 at 02:11:21:

IF there is enough equity in the property, a hard money lender usually does not ask for your credit