Residential Hard Money LoansCredit Scores May Be Required Now Day's  Residential Hard Money Loans. Find a Real Estate Hard Money Lender For No Red Tape Loans. Hard Money Real Estate Loans Can Close Fast. When you need purchase money fast "No Red Tape" real estate loans can save the day. Low Credit Scores No Problem! Bankruptcy No Problem! The two main conditions to obtain a hard money loans is the value of the real estate and the ability of the borrower to repay the loan. Hard money loans are reasonably easy to get but they can be expensive, plus the interest rates range from 12% to 20%. Hard money lenders charge points. This adds to the yield on funds invested. One point is 1% of the loan amount and it is usually included in the total loan amount. How this works is, you borrow $50,000 and pay 7 points you will end-up with $46,500 less loan costs. Loan costs will run around $2,000 so your net would be around $44,500.
_____________________________________________ What exactly are Residential hard money loans? Hard money real estate loans are secured by the value of your real estate and not so dependent on credit scores. Most hard money loans are obtained through Non-Traditional Lenders. Some are funded by Private Investors... Now days, most residential hard money loans are limited to 65% loan to value. An option to hard money is a real estate Bridge Loans. 
It is not uncommon for hard money lenders to charge from 4 to 10 points for making the loan. Hard Money Loans are hard to get and hard to pay back.
That is part of the reason there called Hard Money Loans. The up side is... Bad Credit is OK with most hard money lenders, because they lend on the value of the real estate. There main concern is to get the loan paid back with interest.
There is a good chance you will be charge a Pre-Payment Penalty for paying the loan off too soon. Hard Money Lenders will make loans traditional lenders will not touch with a 10 foot pole...  • Borrowers with Less Than Perfect Credit are...KO • Loans to people with Recent Bankruptcies. • The Self Employed can get loans. • This is a big one. People with recent Foreclosures. Hard money loans are a class of loans using the quick-sale value of the real estate. Lenders usually want to be in the first lien position.
This gives the lender the legal right to sell the property to satisfy the debt in the event of default. With the high cost of hard money loans, why would anyone want one? Investors that flip real estate are a good example. If the home is in disrepair or owned by a bank, it may be a cash only sale. If it is a Cash Only real estate sale then the buyer must pay cash. Then they will need additional money to do the rehab. Savvy investors build the cost of money into the resale value of the property before they buy it. If the bottom line is not good Savvy Real Estate Investors will not buy the property. Residential Hard Money loans are structured based on the purchase price of the property. Hard Money Lenders are more concerned with purchase price than future value. House flipping is a major user of residential hard money loans. When the "LTV" loan-to-value is only 50% to 70% the hard money lenders are fairly safe. But hard money real estate loans can and do go bad and the lenders do take a losses. During the Real Estate Crash, when Home Values Dropped by 40 to 50%, even hard money lenders took some Big Hits. About 50 or 60 percent of all hard money lenders that were around for years are now gone. Real estate hard money loans are good when you need them, keep in mind the lender want your transaction to work as much as you do. REAL ESTATE HARD MONEY LOANS: If you find yourself with foreclosure problems or other legal situations, this is a good place to find answers. Just watch the videos. Jurisdictionary Watch the FREE Instructional Videos. Left Side Half Way Down...
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