Hard Money Lenders and Hard Money Loans

Hard Money Lenders and Hard Money Loans

Finance
These short-term loans are expensive and it'd never be advisable even if they were legal for a home owner to borrow from the private lenders. So how tough are these short term loans, you inquire? The reply is threefold. They are prohibitive in loan to value, they're high in fees and high in rate. Restrictive in Loan to Value. The maximum loan to value for most private loans range from 50% to 75%. No deals are done for 2 reasons at the larger loan to value. Is since there are really so many REO's, Short Sales and foreclosure properties in the marketplace today that what was generally considered an especial deal is common place. Hence, private lenders are more particular in regards to loans, borrowers and the properties they select…
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