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Hard Money - Poor Credit
Income Problems - No Seasoning
Hard Money: Purchase or Refinance on SFR,
Condos, 2-4 units, Rehabs.
Hard
money lending criteria is the amount of lend able equity, the condition of
the subject property and borrower’s ability to repay the debt primarily
determines the basis of the loan approval for the Purchase or Refinance of
single family home, 2-4 units & Condos. Loans available to homeowners,
investors, corporations, partnerships, trusts, administrators,
conservators, executors, estates, heirs on all loans programs offered by
Normandy Mortgage.
Poor Credit:
Hard
money loans gives the borrowers with poor credit or no credit the
opportunity to re-establish or establish their credit history, save a
property that they may otherwise lose in Foreclosure, take advantage of the
Equity in their property for business opportunity, or use the funds for any
good reason. The borrower’s credit history is considered but is not a
significant factor in determining the loan decision.
Income Problems:
The
Borrower’s ability to repay the debt is one of the primary concerns in
determining the loan approval. Does the borrower have the ability to make
the monthly payments today!
Have
they just started a new job, a career change, newly self-employed,
commission only, rental income, etc., we do not have a requirement for a
specific time on the job or self employment. We would request a copy of a
pay-stub, bank statements, rental agreements, etc., to determine if the
borrower has the income to make the monthly payments.
Borrowers
with good to excellent credit history we would accept no income
documentation; it stands to reason that if the borrower has maintained
a good credit history, they must have the income to make their payments.
No Seasoning:
Because
of the liberal terms of Hard Money there are no "Seasoning"
requirements for property ownership, or past Bankruptcy. Meaning we do not
require a borrower to own a property for a specific length of time before
they can borrower against their equity. If a borrower purchased a property
today for $100,000.00 and the following week did or did not made any type
of improvements to the property and is now appraised for $150,000.00, we
will use the new value to determine the loan amount. If a borrower has had
their Bankruptcy discharged last month we will approve the loan this month,
so long if there is sufficient lend able equity.
Loan Amount &
Term:
1st
Trust Deed Loans:
Minimum
of $30,000.00 to a maximum of $1,000,000.00 available on single family
residence, 2 to 4 units, Condos, Town home, Manufactured home on a
permanent foundation. Loans under
$30,000.00 are available on a case-by-case basis.
Loan
Purpose:
Purchase
or refinance, cash out, debt consolidation, pay taxes, pay judgments, home
improvement, buy another property, for any good reason.
Loan-to-Value:
We
will lend up to 65% to 70% of the appraisal value and all properties must
be appraised by an approve appraiser.
2nd
Trust Deed loans:
Minimum
of $20,000.00 to a maximum of $1,000,000.00 available on single family
residence, 2 to 4 units, Condos, Town home, Manufactured home on a
permanent foundation. Loans under
$20,000.00 are available on a case-by-case basis.
Loan
Purpose:
New
2nd or refinance existing 2nd, cash out, debt
consolidation, pay existing 1st current, pay taxes, pay
judgments, home improvement, and buy another property, for any good reason.
Loan-to-Value:
We
will lend up to 65% to 70% of the appraisal value and all properties must
be appraised by an approve appraiser.
3rd
Trust Deed loans:
Minimum
of $20,000.00 and on a case-by-case basis.
Terms:
Owner
occupied loans: The loan is repaid in monthly payments of interest only for
a term of up to six years. If the borrower wishes to pay toward the
principal or pay off the loan at any time, there is no pre-payment penalty
clause on the note.
Non-owner
occupied loans: The loan is repaid
in monthly payments of interest only for a term of one to five years. If
the borrower wishes to pay toward the principal or pay off the loan at any
time, there is no pre-payment penalty clause on the note.
Summary:
Hard
Money loans are secured as a 1st, 2nd or 3rd
Trust Deed recorded against the subject property and is typically approved
up to 65% to 70% of the appraised value. For a 2nd or 3rd
Trust Deed loans we have to consider the amount of the existing liens
currently recorded against the property. Typically 2nd or 3rd
Trust Deed loans are approved up to 65% to 70% of the appraised value, less
the balance of the existing liens will determine the amount of lend able
equity. Single Family Home Loans, 1-4 Units and Condos are acceptable type
of property for this program.
Hard
Money loans are primarily funded with private investor funds and because of
the liberal credit requirements the interest rate and fees charged to the
borrower are higher than the conventional loan programs. Please call for
details on interest rates & fees.
(800) 576-0102 Fax (714) 632-9752
Normandy
Mortgage Servicing Co.
Revised 2/12/03
©1999-2001
Normandy Mortgage Servicing Co.
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