Hard Money

hard money mortgage loans

Hard money loans are short-term lending instruments which real estate investors can use to finance an investment project. These loan tools are often used for house flippers or real estate developers whose objective is to renovate or develop a property, then sell it for a profit. Hard money loans are issued by private lenders rather than traditional financial institutions such as banks.

Unlike traditional bank loans, the ability to obtain hard money financing isn’t determined by the borrower’s credit worthiness. Instead, hard money lenders use the value of the property itself in determining whether to make the loan. Specifically, we focus on the “after repair value,” or ARV, which is an estimate of what the property will be worth once the renovations or development phase is complete.

Hard money loans are convenient and generally come with a higher interest rate and loan origination fees than a traditional lending institution. The purpose of hard money lending loans is to allow a real estate investor to get an investment property to market as quickly as possible. As a result, these loans feature shorter repayment terms.

Hard Money Loan Program

  • Lending Area: United States, emphasis in Florida
  • Property Types: Residential and Commercial
  • Loan Size: $50,000 to $3,000,000+
  • Loan to Value (LTV): Up to 75% LTV
  • Closings: Typically 7-14 business days
  • Amortization: Interest only or amortized

Foreign National Loan’s Basic Information:

• Credit verification is required; we accept international credit reports
• Pre-qualification can help expedite your property shopping process
• Proof of income, property ownership and employment or business ownership is necessary
• A valid international passport and secondary ID are required
• A U.S. visa may also be required (varies by country)
• No U.S. Social Security number or Green Card required

You should consult with a real estate attorney to review any purchase contract(s), and work with a tax specialist to ascertain what U.S. tax liabilities apply in your situation.

No Verification/No Documentation Loans:

These types of loans help you to keep your financial information to yourself without having to share it all with your lending institution. Since this type of mortgage loan allows you to bypass some of the paperwork that is typically associated with real estate loans, these loans typically result in higher interest rates and fees.

Who Needs No Verification Loans?

Some of the reasons you may choose to get this type of a loan include:

• Self-employed business owners
• You receive payments each month from clients with poor credit or with a low income
• You do not claim all of your income from cash
• You are divorced and your ex-spouse had poor credit
• Non-U.S. citizen and receive non-documented payments
• You are unemployed and do not meet the income requirements for a traditional loan
• Your debt to income ratio is poor

Obtaining The Proper Paperwork:

Despite its name, there are still some pieces of paperwork you will generally need to supply with this type of loan. For example, the lender may still require a credit report in order to determine your current credit score. In addition, the lender will want to get an appraisal of the home in order to make certain the amount of the loan is worth the value of the home. It is possible to obtain one of these loans without this paperwork as well, but it is generally much more expensive. It should also be noted that these types of loans are only valid with single family homes, condos, or townhouses. Therefore, you cannot purchase a commercial property, a mobile home, or a manufactured home with these loans.

Types Of No Verification Loans:

There are three basic types of no verification loans you can select from. These include:
• No-Doc/No Income-No Asset Verification Mortgages
• No Ratio
• Stated Income

A No-Doc/No Income-No Asset Verification Mortgage, otherwise referred to as a NINA, is completely private. In fact, all you really need is the address of the home you wish to purchase and your social security number. In order to qualify for one of these loans, which can be fairly expensive, you need to have a very high credit score.
No Ratio Mortgages are most commonly obtained by people that are going through a rough divorce or by those that are going through a career change because they do not require income verification. These mortgages also do not require revealing the amount of debt you are in. Since you don’t need to provide as much paperwork, you can move through the entire process much faster and get into your home sooner.

The Stated Income Mortgage option is generally utilized by people that are self-employed because they do not have to prove their income. Rather, they simply say how much they make and then demonstrate that by providing a profit and loss worksheet. Although this does require showing some paperwork, it makes it possible to claim a different income than what is shown on tax forms. If you are interested in obtaining a mortgage loan without having to show proof of income or debt, call A to Z Capital today.

 

 

 

Contact A to Z Capital, Inc.

9825 Marina Blvd Suite 100, Boca Raton, FL 33428

561-609-6699

info@atozcapital.net

https://atozcapitallending.com