Private Hard Money Lenders
Private hard money lenders can help you get the money you need for your property. Hard money lenders based their lending decision on hard assets such as machinery or buildings. Hard money lenders will lend money for construction and renovation projects. These lenders do not base their decision on your personal credit rating or credit history. Private hard money lenders are more flexible and have less rigid lending criteria. If you require a hard money mortgage please call for a free quote.
Hard money mortgages use the loan to value ratio to determine the amount of the mortgage. Most hard money lenders will not usually go above a LTV of 85%. To determine your LTV ratio you divide the total of any current mortgages on the property by the market value of the property. An example of this would be a house worth $400,000.00 that has a mortgage of $300,000.00 on it. The LTV is this example is 75% which is the level most major banks will go up to for a first mortgage. If this homeowner wanted a second mortgage for $30,000.00 the new LTV ratio would be 82.5%.
Private hard money lenders require an appraisal of the property before approving the loan. Appraisals can be done in a number of ways the first and most common appraisal is done by a licensed professional. Appraisers have been trained on how to inspect each property and how to determine the present market value of the property. The appraisal will include an inspection of the property. The appraiser will look at any buildings on the property and all the surrounding property. If there is a house on the property, pictures will be taken of all rooms within the house, any defects or problems areas such as a leaky roof will be noted in the appraisal.
Our mortgage brokers can assist you in getting the hard money loan that you need. By simply calling one of our brokers you will receive a free consultation that can show you how a private hard money lender can help you.