Hard Money Loans via MLO Financial
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies. Interest rates are typically higher than conventional commercial or residential property loans
Most hard money loans are used for projects lasting from a few months to a few years. Hard money is similar to a bridge loan, which usually has similar criteria for lending as well as costs to the borrowers. The primary difference is that a bridge loan often refers to a commercial property or investment property that may be in transition and does not yet qualify for traditional financing, whereas hard money often refers to not only to a fast equity-based loan for cash but possibly also a distressed financial situation, such as pertaining to an existing mortgage, or where bankruptcy and foreclosure proceedings are occurring and certain liens and expenses must be covered fast to avoid further complications.
The loan amount the hard money lender is able to lend is determined by the ratio of loan amount divided by the value of the property. This is known as the loan to value (LTV).
* Less stringent requirements
* Higher rate of approval
* Faster closing process
* Flexible loan terms
* Qualification not based on FICO scores
* Equity driven approval
* 60%-70% LTV
* Rehab 60%-65% LTV
* Current N.O.D
* Current 30 days mortgage rate