HARD MONEY CAN BE EASY MONEY FOR YOUR REAL ESTATE DEALS TAMERA ARAGON
•
Purchase real estate — with a sufficient down
Note: The amount of required equity for hard money
payment (usually 30% or more), you can
loans varies by the hard money lender, property type
secure a new 1st mortgage with a hard money
and investor.
loan
Three Things You Must Have to Qualify for a Hard
•
Refinance a loan — hard money loans to
Money Loan
obtain cash from equity, pay off a balloon
mortgage, refinance a delinquent loan to
1.
Sufficient remaining equity in the property
prevent a foreclosure, pay off a Chapter 13
(usually 30% or more after the new loan,
bankruptcy, and others. You usually need at
including points and fees. The amount of
least 30% or more residual equity left in the
required equity for hard money loans varies by
property after the new loan, including points
property type and investor.)
and fees, to qualify
2.
•
Add a 2nd or 3rd mortgage — hard money
An acceptable property in a marketable area (at
lenders discretion)
loans can be used as subordinate financing to
existing 1st mortgages for cash out for debt
3.
consolidation, remodeling, repairs, business
The ability to repay the loan to the investor
(required by law)
loans, investments, or for any reason
You may qualify for a hard money loan even if- – •
Secure a bridge loan to purchase new real
estate before selling your current property
1.
You have bad credit, minimal credit, or NO
credit — sufficient equity and the ability to repay
•
To complete construction or rehabilitation on
the loan are more important to hard money
residential or commercial property
lenders than your personal credit (However: tax
liens, current bankruptcy, judgments, clouds on
title, etc., may require resolution prior to or at
closing);
2.
You have too much debt to qualify for a bank
loan — provided you have the necessary equity
in your property (or down payment) and the
ability to repay the loan, our hard money lenders
can make allowances for excessive debt;
3.
You have non-verifiable, inconsistent, or
unusual income — provided you can make the