Hard Money Mortgage Refinance & Equity Loans
Hard money loans, also known as private money loans, are home equity driven mortgage loans funded by private investors and companies using their own money secured by a real estate trust deed, eliminating the common qualification and underwriting guidelines of prime (regular) and sub-prime (bad credit) lenders.
When Lenders Turn You Down Because of Bad Credit
“There are private investors who, if the interest rate is high enough and the perceived risk is low enough, they will put the money up,” says Pam Strickland, owner of Mortgage Consulting Services in Santa Barbara , Calif. These investors, typically called “hard money lenders”, make loans to people who are being turned down due to these and other reasons:
� Borrower’s FICO scores are below 500 due to recent bankruptcy or bad credit;
� Income is unverifiable or borrower lost his/her job;
� Balloon payment on existing loan is due now;
� Foreclosure is imminent;
� Borrower is purchasing odd or non-conforming types of properties (land, mixed use, etc).