Even Hard Money Lenders want to know how you will pay them back!

It used to be that Hard Money Lenders would do a loan with very little or no documentation of Income, Assets, or Employment. Instead, they relyed on the properties equity to protect them. You could get a hard money loan done in a few days to a couple of weeks.

Now days, with values declining and foreclosures increasing, they are taking additional steps to ensure a successful loan. Besides the usual appraisal review, they are asking for documentation of income, assets, and even looking at tax returns for self employed borrowers. They are underwriting with the ability of the borrower to repay the loan. That cuts out a lot of the real estate investors who don't show any income on their tax returns.

Who can benefit from hard money loans these days?

The borrower who has a short term need for financing, but their credit score is less the bank's guidelines.

The commercial owner who wants a cash out refinance without having to prove to the bank why they need the cash.

The borrower who cannot accept a prepayment penalty, ie a fixer upper or turn around project. Prepayment penalties are common on commercial deals and can be very steep and long term.

If you have a loan scenario that falls into the above, call me. I would be happy to provide an alternative to restrictive bank terms or outright denials.