LENDER’S VIEWPOINT
By Owner, Guy In The White Hat
“Hard Money” Loans
There was a really good article in the Wall Street Journal last week about Hard Money loans. It was informational to borrowers and investors alike. It spoke of the fact that Hard Money loans will account for 1% of the 5.5 million home loans originated this year, up sharply from prior years.
It mentioned “Hard Money” filling an important void. Look at just a few instances.
1. You just did a short sale on your home and want to buy another one. Your favorite bank won’t even talk to you. You know that prices are at rock bottom and you can buy the same home that you bought 5 years ago for $400,000 now priced at $195,000! Hard Money can fund that loan!
2. You lost your job and your credit is shot. You now are back to work in your old job making the same money and you want to buy a house. You’ve got 30% down. No bank will touch you as your FICO score is 525. Hard Money can fund that loan!
The Wall Street Journal article further states that the fees and rates are no doubt higher than a bank, but it is well worth it as “no bank is willing to listen.”
The real gist of the article is to buy a home. Even at Hard Money rates it’s worth it because you’d be getting in at the bottom of the market and down the road could refinance to a 30-year fixed rate loan once qualified again. Your gain from buying at the right time can offset the cost using Hard Money.
Take advantage of a Hard Money loan and be a Buyer, or help your potential Buyers succeed at getting into a new home by directing them to such available financing!
Owner- the Guy in the White Hat – is a CA DRE Broker with more than 23 years of experience in real estate and lending. His phone number is (707) 523-2099. Email is Broker@sunpacmortgage.com. See website @ www.sunpacmortgage.com. DRE#01464899/NMLS #360993
Reference:
Wall Street Journal Hard Money Lending Article
http://online.wsj.com/article/SB10001424053111904233404576458514107499084.html?mod=business_newsreel